Can Fin Homes Q1 PAT +20% YoY to ₹268 Cr on wider margins; QoQ dip is a tax artefact
PAT +19.63% YoY · revenue +7.43% · margins expanding · inline vs street
₹1,096.15 Cr
+7.43% YoY
₹267.82 Cr
+19.63% YoY
24.43%
+2.5pp YoY
₹20.11
Can Fin Homes reported standalone net profit of ₹267.82 Cr for Q1 FY27 (June 2026), up 19.6% from ₹223.87 Cr a year ago, on revenue from operations of ₹1,096.15 Cr (+7.4% YoY). Profit grew nearly three times faster than the topline, lifting net profit margin to 24.4% from 21.9% a year earlier — the disclosed NPM is 24.39%. This is standalone only; the company has no subsidiaries, so there is no consolidated set to reconcile against.
Q1 FY-2027 vs prior quarters
The margin expansion is a provisioning-and-leverage story rather than a spread story: expected-credit-loss provisions fell to ₹13.06 Cr from ₹26.25 Cr a year ago, while finance costs were roughly flat YoY (₹659.5 Cr vs ₹648.3 Cr), so PBT rose 21.9% YoY to ₹338.51 Cr. The 22.5% sequential drop in PAT (from ₹345.67 Cr in Q4 FY26) is almost entirely a tax base effect — Q4 booked a ₹51.5 Cr deferred-tax write-back that pushed its effective rate near 2%, versus a normalised ~20.9% this quarter; PBT itself slipped only modestly QoQ (₹338.5 Cr vs ₹353.0 Cr). Provisioning did rise sequentially (₹13.06 Cr vs ₹0.56 Cr in Q4), confirming the higher-provisioning-QoQ flag Motilal Oswal raised in its preview.
The stock went into the print at ₹889.45, up 1.1% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters; PAT has now risen for 3 consecutive quarters; revenue is at a 6-quarter high.
Management guides for INR 13,000 crores in disbursements for FY27, targeting a 14% AUM growth after accounting for an anticipated INR 7,000 crore rundown. They conservatively project spreads of 2.75% and NIM of 3.75%, while expecting to maintain current levels of 2.8%+. Credit costs are guided at a benign 15 basis poin
The print lands inside the street range — brokerages polled by Informist expected ₹255–275 Cr PAT — so it is broadly in line with, not ahead of, consensus. Against management's own FY27 guidance (₹13,000 Cr disbursements, ~14% AUM growth, NIM ~3.75%, credit cost ~15 bps, ROE >18%), this filing doesn't disclose AUM, disbursements or NIM, so those checkpoints stay open for the July 20 concall; however, annualised PAT on the ₹5,980 Cr net worth implies ROE tracking ~18%, and the benign credit costs sit comfortably within the 15 bps guide. Concurrent board actions: a ₹8/share FY26 final dividend (recommended April, up for approval at the July 29 AGM), the appointment of Shailesh Kumar Singh as Deputy Managing Director, an ESOP grant of 32,435 options, and redemption of ₹935 Cr of NCDs during the quarter. Asset quality remains clean (GNPA 0.87%, NNPA 0.42%, PCR 52.1%, CRAR 23.39%), and the RBI's ₹2.7 lakh Fair-Practices penalty is immaterial.
What to watch
W1
July 20 concall: AUM growth and disbursement run-rate against the FY27 guide of ~14% AUM growth and ₹13,000 Cr disbursements.
W2
NIM/spread trajectory vs guided NIM ~3.75% and spread 2.75% (management aims to hold 2.8%+); not disclosed in this filing.
W3
Credit-cost trend: ECL rose to ₹13.06 Cr this quarter — track against the benign 15 bps FY27 guide and stable GNPA of 0.87%.
Source in ₹ Lakhs, converted to Cr (÷100). Standalone only — company has no subsidiary/JV, so consolidation N/A (Note 6). Revenue from ops = interest + fee income (excl. other income), matching prior-quarter convention. QoQ PAT fall is a tax base effect: Q4 FY26 carried a ₹51.5 Cr deferred-tax write-back that cut its effective rate to ~2%; this quarter normalised to ~20.9%. RBI Fair-Practices-Code penalty of ₹2.7 lakh (immaterial) flagged as emphasis of matter by auditors. Arithmetic checks pass: 1096.15+0.18=1096.33; 338.51-70.69=267.82.
Informational and educational content only. Not investment advice.