According to Motilal Oswal's research report dated May 07, 2026, Home First Finance delivered robust financial results for Q4FY26. The company's Profit After Tax (PAT) grew 43% year-on-year to ₹1.5 billion in Q4FY26, meeting expectations. For the full fiscal year FY26, PAT increased approximately 41% YoY to ₹5.4 billion. The company's Net Interest Income (NII) in Q4FY26 grew 37% YoY to ₹2.4 billion, while other income expanded 37% YoY to ₹730 million. Operating expenses increased 23% YoY to ₹984 million, and Pre-Provision Operating Profit (PPoP) rose approximately 45% YoY to ₹2.1 billion in Q4FY26.
As reported by Motilal Oswal, credit costs stood at ₹158 million, representing a 17% increase from estimates. This translates to an annualized credit cost of approximately 50 basis points, compared to the previous quarter's 47 basis points and the previous year's 30 basis points. PPoP for FY26 grew approximately 44% YoY to ₹7.6 billion, demonstrating consistent operational performance across the fiscal year.
According to Motilal Oswal's analysis, the stock currently trades at approximately 2.6x FY27E P/B ratio. The brokerage estimates a Compound Annual Growth Rate (CAGR) of 23% in AUM and 18% in PAT over FY26-28E. For FY28E, the company is projected to achieve Return on Assets (RoA) of 3.7% and Return on Equity (RoE) of 14.2%. Motilal Oswal has reiterated its BUY rating with a target price of ₹1,425, based on 2.6x FY28E Book Value.
