REPCOHOME - Repco Home Fin

📊 NSE: REPCOHOME 🏢 Finance - Housing 📅 Last Updated: 12/14/2025 11:50

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 4% YoY to INR 445.1 Cr in Q2 FY26 from INR 426.5 Cr. The loan book is segmented into Home Loans (71% of portfolio) and Home Equity (29% of portfolio).

Geographic Revenue Split

The portfolio is highly concentrated in South India, with Tamil Nadu (TN) accounting for 57% of the total loan portfolio as of June 2025.

Profitability Margins

Net profitability (PAT/AMA) stood at 3.0% in FY25 compared to 2.9% in FY24. In Q2 FY26, the Return on Assets (RoA) was 2.9% and Return on Equity (RoE) was 13.5%, down from 16.0% in Q2 FY25.

EBITDA Margin

Pre-provision operating profit (PPOP) rose 5% to INR 550 Cr in FY25 from INR 524 Cr in FY24. Net Interest Margin (NIM) remained stable at 5.5% in Q2 FY26 compared to Q2 FY25.

Capital Expenditure

Not disclosed in available documents as the company is a financial services provider; however, Net Owned Funds (NOF) increased to INR 3,464.2 Cr by Sep 2025 from INR 2,867.9 Cr in Sep 2024, representing a 20.8% increase in capital base.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook from rating agencies. The cost of borrowings decreased to 8.6% in Q2 FY26 from 8.8% in Q2 FY25, a reduction of 20 basis points.

⚙️ Operational Drivers

Raw Materials

Not applicable for financial services; the primary 'raw material' is borrowed capital. Bank funding represents a significant portion of the funding profile.

Import Sources

Not applicable for financial services.

Key Suppliers

The company relies on various banks for funding, though specific lender names are not listed; bank funding is noted as a concentrated source of capital.

Capacity Expansion

Current loan book (AUM) is INR 15,033.4 Cr as of Sep 2025, growing 7.7% from INR 13,964.4 Cr in Sep 2024. The company achieved its highest-ever quarterly disbursement of INR 1,069.1 Cr in Q2 FY26.

Raw Material Costs

Interest and financial charges (cost of capital) were INR 244.4 Cr in Q2 FY26, up 2% YoY. The company reduced its Marginal Lending Rate (MLR) to 10% from 10.10% effective July 1, 2025.

Manufacturing Efficiency

Cost-to-income ratio stood at 26.3% for the half-year ended Sep 2025, compared to 25.0% in the previous year, reflecting higher operational costs from expansion.

Logistics & Distribution

Distribution is handled through a branch network; employee benefit expenses (the primary distribution cost) rose 21% YoY to INR 34.3 Cr in Q2 FY26.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

The company targets a 10-15% CAGR over the next three fiscals by focusing on 'growth with quality.' Strategies include structural organizational changes, strengthening the credit review process, and maintaining a stable 22% month-on-month growth in disbursements.

Products & Services

Individual Home Loans for purchase/construction and Home Equity (Loan Against Property) products.

Brand Portfolio

Repco Home Finance (RHFL).

New Products/Services

Not specifically disclosed, but the company is focusing on increasing the 'Non-Salaried' segment which now constitutes 53% of the loan mix.

Market Expansion

The company is undergoing operational expansion and structural changes to support a higher growth trajectory compared to the historical 4% CAGR.

Strategic Alliances

Promoted by Repatriates Cooperative Finance and Development Bank Limited (Repco Bank).

🌍 External Factors

Industry Trends

The HFC sector is seeing a trend of improving asset quality; RHFL's Stage 3 assets declined from 3.96% to 3.16% YoY. There is a shift toward digital credit review and tighter underwriting to manage credit costs.

Competitive Landscape

Faces intense competition from banks and other HFCs, which pressures lending rates (MLR cut to 10%).

Competitive Moat

Moat is built on a strong presence in the South Indian market and expertise in the non-salaried segment (53% of mix). Sustainability depends on maintaining lower delinquency levels (currently 3.16% Stage 3) relative to peers.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and the regulatory environment for Housing Finance Companies (HFCs) governed by RBI/NHB.

Consumer Behavior

Increasing demand for home equity products, which now comprise 29% of the portfolio compared to 26% in Sep 2024.

Geopolitical Risks

Low direct impact as operations are concentrated in South India, primarily Tamil Nadu.

⚖️ Regulatory & Governance

Industry Regulations

Complies with NHB/RBI Master Directions for HFCs, including capital adequacy (CRAR) and NPA classification norms. Secretarial audit for FY25 reported full compliance with the Companies Act 2013.

Environmental Compliance

The company files a Business Responsibility and Sustainability Report (BRSR) as per SEBI mandates for top 1000 listed entities.

Taxation Policy Impact

Effective tax rate for Q2 FY26 included a current tax of INR 20.1 Cr and deferred tax of INR 15.4 Cr on a PBT of INR 142.4 Cr.

Legal Contingencies

The company monitors divergence in classification and provisioning for NPAs as per NHB/RBI supervisory findings; specific court case values are not disclosed.