Can Fin Homes exceeds Q2 disbursement guidance, sees improved asset quality

Can Fin Homes Limited achieved Q2 FY26 disbursements of INR2,500 crores, meeting its guidance and marking a positive trend following Q1 FY26 disbursements exceeding INR2,000 crores. The company aims for INR2,500 crores in Q3, acknowledging an IT transformation. Full-year disbursement guidance remains INR10,500 crores, with AUM growth targeted at 12-13% for the current year, increasing to 15% for FY27 and FY28.

Delinquency saw a significant reduction of approximately INR130 crores, with total delinquency at INR3,850 crores. SMA 0 and SMA 2 balances also decreased, leading to very low credit costs. The company expects a further INR100 crores reduction in SMA in Q3. NIM improved to 4.02% in Q2 from 2.79% in Q1, and spreads rose to 2.79% from 2.62%, benefiting from repo rate cuts and NHB refinance.

Karnataka's monthly disbursements reached INR270 crores in September, nearing the previous year's average of INR275 crores, with positive year-to-date growth expected by Q3. Telangana's negative growth reduced from 30% to 27%, with an average monthly disbursement target of INR125 crores by Q4. The company opened 29 new branches in the last 6-9 months, boosting geographical presence.