Q2 2026 Repco Home Finance Ltd Earnings Call Transcript
Key Points
- Repco Home Finance Ltd (BOM:535322) achieved its highest ever quarterly disbursement of INR 1,069 crores in Q2 FY26, marking a significant milestone.
- The company maintained a stable growth rate of 22% in disbursements month-on-month, indicating strong business momentum.
- The cost of funds saw a marginal reduction, and the company passed on the benefits to customers by reducing the marginal lending rate.
- Repco Home Finance Ltd successfully diversified its borrowing profile, issuing INR 150 crores of commercial paper and receiving positive responses from institutional investors.
- The company plans to open additional branches, expanding its network to enhance business reach and customer engagement.
- Despite high disbursements, the AUM growth remains a challenge due to significant rundown on the legacy book and competitive pressures.
- Employee costs have increased due to realignment of incentive policies, promotions, and additional manpower, impacting overall expenses.
- The company's return on assets (ROA) decreased from 3.2% to 2.9%, raising concerns about maintaining profitability in a declining interest rate environment.
- The gross NPA remains a concern, with a target to reduce it from INR 475 crores to INR 450 crores by the end of the current quarter.
- There is a need for higher dividend payouts to improve return on equity (ROE), as current payouts are considered low relative to profits.
Ladies and gentlemen, good day and welcome to the Repco Home Finance Q2 FY26 earnings call hosted by Yes Securities Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Rajiv Mehta from Yes Securities. Thank you and over to you, sir.
Thank you, Swapnil. Hi, good evening, everyone. Thank you for joining Repco Home Finance second quarter FY26 earnings call. From the management side we have, Mr. T. Karunakaran, MD and CEO; Mr. A Palapandi, Chief Operating Officer; Mr. PK Vaidyanathan, Chief Development Officer, Mr. M. Raja, Chief Business Officer; Ms. Shanti Srikanth, Chief Financial Officer; and Mr. Ankush Tiwari, Company Secretary and Compliance Officer.
Now I request Mr. Karunakaran, to start the call with his opening remarks, post which we can open the floor for Q&A. Over to you, Karunakaran.
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