Q1 2027 Repco Home Finance Ltd Earnings Call Transcript
Key Points
- Repco Home Finance Ltd (BOM:535322) reported a year-on-year improvement in asset quality, with gross NPA declining to 427 crores from 485 crores in the same period last year.
- The company maintained a stable net interest margin (NIM) of 5.4% and a healthy spread of 3.4% for the quarter ended June 2026.
- Net profit increased to 114 crores in Q1 FY27, up from 108 crores in Q1 FY26, reflecting improved profitability.
- The company secured a 600 crore refinance facility from the National Housing Bank, which will help stabilize the cost of funds and support growth.
- Management reaffirmed its full-year guidance of 5,000 crores in disbursements and 13-14% AUM growth, with July and August disbursements already tracking in line with expectations.
- The company has implemented structural changes, including verticalization of operations and IT upgrades, which are expected to drive operational efficiency and future growth.
- Q1 FY27 disbursements were flat year-on-year at 843 crores, impacted by routine branch transfers and employee promotions that disrupted operations.
- Gross NPA ratio saw a slight sequential increase to 2.7% from 2.6% in the previous quarter, with absolute NPAs rising to 427 crores from 405 crores.
- The company faces intense competition from banks offering lower home loan rates, leading to a spike in balance transfers (BT outs) during the quarter.
- Management indicated that the spread may compress by 10-12 basis points in the coming quarters due to the need to offer concessions to retain customers and drive aggressive disbursement growth.
- The company's cost of funds remains relatively high at 8.3%, limiting its ability to compete on pricing with banks that have access to low-cost CASA deposits.
- Stage two assets remained elevated at 7.2% of the book, and recoveries from NPA and stage two accounts are not yet sufficient to upgrade these assets to higher categories.
Ladies and gentlemen, good day and welcome to Repco Home Finance Limited Q1 FY27 earnings call hosted by ES Securities Limited.
Please note all participants are currently in listen-only mode.
There will be an opportunity for you to ask questions following the conclusion of the management's opening remarks.
Please note that this conference is being recorded.
I now hand the conference over to Mr. Rajiv Mehta from ES Securities.
Thank you. Hand over to you.
()-
Yeah. Thanks, Swapnil. Good evening, everyone.
Thank you for joining this Q1 FA27 conference call of Repco Home Finance.
From the management team, we have Mr. T. Karunakaran, MD and CEO. Mr. P. K. Vaigyanathan, full-time director and Chief Development Officer.
Mr. M. Raja, Chief Business Officer.
Mr. A. Palappandi, Chief Operating Officer.
Mr. Ankush Tiwari, company secretary and compliance officer. And Ms. Shanti
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