Everything You Need to Know About Can Fin Homes Concall Q3 2025

Can Fin Homes Concall: A Comprehensive Overview

Karnataka’s e-Khata Issue and Its Impact

Can Fin Homes faced challenges in Karnataka during Q3 due to delays caused by the e-Khata issue. This problem led to lower-than-expected disbursements, which impacted the company’s overall growth. However, recent developments show that the issuance of e-Khatas is now underway, and the situation is improving.

AUM Growth and Future Expectations

The company’s Assets Under Management (AUM) growth slowed down in Q3 because of reduced disbursements. Despite this, Can Fin Homes is optimistic about the upcoming quarter, anticipating improved growth. For FY26, the company has projected an AUM growth rate of approximately 13-14%.

Collection Performance and Gross NPA

Collections remained steady during Q3. While there was a slight increase in gross Non-Performing Assets (NPA), the Special Mention Account (SMA) Stage 2 levels remained stable. Provisioning also increased due to SMA zero levels, but it is expected to decrease marginally in Q4.

Borrowing Costs and Financial Efficiency

The company made significant strides in reducing its borrowing costs. All bank borrowings were either repaid or shifted to a repo rate, resulting in lower expenses. Additionally, Can Fin Homes raised ₹1,600 crores from the National Housing Bank (NHB) at a lower interest rate. These steps have slightly improved the company’s spread and yield, with the spread currently at 2.5% and the Net Interest Margin (NIM) at 3.5%. The management is confident about maintaining these figures going forward.

Operating Expenses and IT Transformation

Operating expenses (Opex) are expected to remain stable in the next quarter. The company has also finalized the Request for Proposal (RFP) process for its IT transformation project, which is expected to enhance operational efficiency in the long run.

Regional Demand Insights

Demand for housing loans has remained stable across most regions. However, Karnataka and Telangana have faced some challenges. In Karnataka, the e-Khata issue significantly impacted loan disbursements. Similarly, demand in Telangana has been affected by regulatory issues. The implementation of UDAIS may also have a minor impact on the company’s operations.

Disbursement Guidance for FY26

Can Fin Homes has maintained its guidance for disbursements, targeting ₹12,000 crores by FY26. This reflects the company’s confidence in overcoming recent challenges and sustaining its growth trajectory.

Key Financial Highlights

1. Improvement in Yield: Slight improvement due to reduced borrowing costs.
2. Spread Stability: Maintained at 2.5%, with an aim to sustain this level.
3. NIM Target: The company continues to maintain a strong NIM of 3.5%.
4. Borrowing Costs: Lowered significantly by shifting to repo rate-linked borrowings and raising funds at competitive rates.

Impact of Regulatory Changes

The implementation of UDAIS and other regulatory changes may affect operations, but the company remains committed to navigating these changes effectively. Steps like the IT transformation project and financial optimization are aimed at mitigating such impacts.

Focus on Stability and Growth

Can Fin Homes has demonstrated resilience despite the challenges in Q3. With strategic initiatives in place, such as reduced borrowing costs and IT advancements, the company is well-positioned for sustained growth. Stable demand across regions, except for minor setbacks in Karnataka and Telangana, further supports this positive outlook.

FAQ: Can Fin Homes Concall

Q1. What caused the slowdown in Karnataka during Q3? The e-Khata issue delayed disbursements in Karnataka, leading to a temporary slowdown.

Q2. How has the company reduced its borrowing costs? By shifting all bank borrowings to repo rate-linked options and raising ₹1,600 crores from NHB at a lower interest rate.

Q3. What are the projected growth rates for AUM? The company expects AUM to grow by 13-14% in FY26.

Q4. Will the e-Khata issue continue to impact operations? No, the situation is improving with the recent issuance of e-Khatas.

Q5. How does the company plan to sustain its spread and NIM? By maintaining competitive borrowing costs and improving operational efficiency through IT transformation.

Conclusion

Can Fin Homes’ Q3 performance reflects both challenges and resilience. Despite regulatory and regional hurdles, the company has taken strategic steps to ensure stable growth. Its focus on reducing borrowing costs, enhancing IT infrastructure, and maintaining strong financial metrics highlights its commitment to long-term success. With a positive outlook for Q4 and beyond, Can Fin Homes is poised to achieve its goals for FY26 while continuing to provide value to its stakeholders.

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