GIC Housing Finance Q1 FY27: PAT rise is a low base effect; revenue flat, NPAs edge up
PAT +35.85% YoY · revenue +0.53% · margins compressing
₹266.76 Cr
+0.53% YoY
₹10.08 Cr
+35.85% YoY
3.77%
+1pp YoY
₹1.87
GIC Housing Finance reported consolidated PAT of ₹10.08 Cr for Q1 FY27 (quarter ended June 30, 2026), up 35.9% YoY from ₹7.42 Cr but down 81.2% QoQ from ₹53.68 Cr; standalone PAT was near-identical at ₹10.04 Cr (+36.6% YoY), so the two bases tell the same story and consolidated is the reference figure here. EPS came in at ₹1.87 (consolidated) / ₹1.86 (standalone) against ₹9.97/₹9.95 last quarter and ₹1.38/₹1.36 a year ago.
Q1 FY-2027 vs prior quarters
The headline YoY jump is a base effect, not underlying improvement. Revenue from operations was essentially flat — up just 0.53% YoY and down 2.2% QoQ to ₹266.76 Cr — so the entire profit swing happened below the finance-cost line, in impairment/ECL provisioning. Q1 FY26 had absorbed a one-time ₹54.16 Cr increase in ECL provisioning from a methodology change (Note 6), which pushed that quarter to a ₹20.31 Cr pretax loss even as PAT stayed positive on a large deferred-tax credit. Stripping that one-off out, Q1 FY26's adjusted PBT would have been roughly ₹33.85 Cr — well above this quarter's ₹17.74 Cr — implying underlying pretax earning power is down YoY (~-48% on an adjusted PBT basis), not up 36% as the reported PAT suggests. Sequentially, Q4 FY26 had benefited from a ₹4.82 Cr provision write-back versus a fresh ₹32.49 Cr impairment charge this quarter, which explains the 81% QoQ PAT drop and the net profit margin collapsing to 3.77% from 19.63% (still above the year-ago 2.80%).
The stock went into the print at ₹149.31, up 0.4% over the past month of trading.
Asset-quality signals were mixed: Gross Stage 3 (NPA) ratio rose to 4.49% from 3.96% in Q4 FY26 — though still better than 4.74% a year ago — while Provision Coverage Ratio slipped to 55.73% from 60.36% QoQ. Debt-Equity held steady at 4.29x. No prior management guidance or concall commentary is on record, and no street/consensus estimates for this small-cap HFC turned up in a search, so vsGuidance and vsStreet are both unknown. Alongside the results, the board approved Hitesh Joshi as Chairman, added an independent director and a new Head-Treasury, and cleared a ₹1,000 Cr related-party-transaction limit plus a ₹3,500 Cr fundraising approval (ratified at the Aug 4 AGM); separately, ₹200.07 Cr of NCD Series 12 Tranche 1 was allotted on July 29 — after the quarter closed — continuing a programme that has raised ₹1,325 Cr across Series 8-11 with no deviation in use of proceeds. RBI's ₹3.1 Lakh KYC-compliance fine (July 3) is immaterial in size.
W1
Whether Q2 FY27 impairment charge normalizes below this quarter's ₹32.49 Cr or reverts toward the write-backs seen in Q4 FY26
W2
Gross Stage 3 ratio, which rose to 4.49% this quarter from 3.96% in Q4 FY26 — watch for further slippage or stabilization
W3
Deployment of the ₹200.07 Cr NCD Series 12 Tranche 1 (allotted July 29, 2026) and the newly approved ₹3,500 Cr fundraising limit, and their effect on the 4.29x Debt-Equity ratio and finance cost
Figures in ₹ Lakh in source, converted to ₹ Crore. No exceptional items reported (line item is nil both periods); PAT swings are driven entirely by ECL/impairment provisioning volatility — Q1 FY26 (year-ago) absorbed a one-time ₹54.16 Cr ECL provisioning increase from a methodology change plus AHS reclassification (Note 6), pushing that quarter to a pretax loss despite positive PAT (large deferred-tax credit); Q4 FY26 (previous quarter) had a ₹4.82 Cr provision write-back. Consolidated includes wholly-owned subsidiary GICHFL Financial Services (₹1.52 Cr revenue, ₹0.04 Cr PAT before consolidation — immaterial).