Can Fin Homes Ltd (CANF) – Q1FY26 Results Summary

CMP: ₹816 | Mcap: ₹10,870 Cr | Rating: BUY | Target Price: ₹940
Valuation: 1.6x FY27E P/ABV

Key Performance Highlights

Growth & Disbursements
AUM: ₹38,773 Cr

+9% YoY, +2% QoQ — Slowest growth in 16 quarters, in line with estimates.

Disbursements: ₹2,015 Cr

–18% QoQ, +9% YoY — Slightly below estimates (–2%).

Repayments: ₹1,459 Cr (Repayment rate at 3.8%, +10 bps QoQ)

Segmental Insights
Ticket size growth:

₹>30 Lakh loans: Disbursements +41% YoY, AUM +30% YoY

Borrower profile:

70% of book in Salaried & Professional segment

86% of book in housing loans (including CRE)

Avg. ticket size: ₹24 Lakh (housing), ₹14 Lakh (non-housing)

Sourcing mix:

79% of AUM sourced via DSAs; top 20 DSAs account for 8%

72% geographical exposure in southern states

Financials & Margins
Margins & Income
NII: ₹363 Cr (+13% YoY, +4% QoQ) – In line

Other Income: ₹9.3 Cr (+34% YoY, –44% QoQ) – QoQ drop due to lower disbursements

Net Revenue: ₹372 Cr (+13% YoY, +2% QoQ)

Spreads: Improved by 7 bps QoQ to 2.62%

Yield: 10.1% (–2 bps QoQ)

Cost of funds: 7.47% (–9 bps QoQ)

Operating Efficiency
Cost-to-Income Ratio: Improved to 18% (from 19% in Q4)

PPOP: ₹304 Cr (+9% YoY, +3.2% QoQ) – In line

Profitability
PAT: ₹224 Cr (+12% YoY, –4% QoQ) – Below estimate due to higher credit costs

Return Ratios:

ROAA: 2.2% (vs 2.6% in Q4)

ROAE: 17% (vs 18.5% in Q4)

Asset Quality
Gross NPA: 0.98% (+7 bps YoY, +11 bps QoQ) – ₹378 Cr (up ₹45 Cr QoQ)

Net NPA: 0.54% (+5 bps YoY, +8 bps QoQ)

Provision Coverage Ratio: 45% (vs 47% in Q4)

Total Provisions: ₹492 Cr (vs ₹466 Cr in Q4), including ₹59 Cr management overlay

Funding Profile
Total Borrowings: ₹35,489 Cr

Mix: Banks 53% | NHB 17% | NCDs 22% | CP 7% | Deposits 1%

Analyst Take
Overall View:
A moderate performance marked by slower AUM growth, modest disbursement trends, and a slight deterioration in asset quality due to seasonal factors.

Positives:

Spread improvement

Operating leverage (cost control)

Growth in higher-ticket segment

Concerns:

Elevated credit costs

Asset quality uptick

Regional/geographic concentration in the South

Next Steps
Awaiting clarity on credit growth, margins (NIM), and credit costs in management concall scheduled Monday, 3:00 PM.

Estimates and TP will be revisited post-concall.