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Informist, Monday, Apr. 20, 2026

By Shweta

NEW DELHI – Can Fin Homes Ltd. is likely to report a healthy on-year growth in its net profit for the March quarter due to a rise in net interest income, according to analysts.

Can Fin Homes, the housing finance arm of Canara Bank, is expected to post a net profit of INR 2.79 billion for the March quarter, up over 19% on year and over 5% on quarter, according to the average of estimates from four brokerages. The highest estimate of INR 2.95 billion is from Motilal Oswal Financial Services Ltd. and the lowest estimate of INR 2.52 billion is from Prabhudas Lilladher Pvt. Ltd.

The housing finance company's net interest income is likely to grow nearly 24% on year and nearly 3% on quarter to INR 4.32 billion for the March quarter, according to the average of estimates. The estimate for net interest income ranges from the highest of INR 4.50 billion by YES Securities (India) Ltd. and the lowest of INR 4.13 billion by Prabhudas Lilladher.

The company's loan book is seen growing around 10% year-on-year during the quarter, Motilal Oswal said. Prabhudas Lilladher expects a pick-up in disbursal growth for large housing financiers, including Can Fin Homes, led by recovery in key markets, such as Karnataka and Telangana after the resolution of property registration software e-khata issues. "However, high BT-out (balance transfer out) pressure and intense competition from public sector banks remain a key overhang," analysts at Prabhudas Lilladher said.

For the December quarter, the company had reported a 25% on-year rise in the net profit to INR 2.65 billion and a 22% rise in the net interest income to INR 4.21 billion. The company will report its earnings for the March quarter Friday.

The net interest margin for the March quarter is expected to rise to 3.7-4.1% from 3.5% a year ago, as per the estimates given by Prabhudas Lilladher and Equirus Capital Pvt. Ltd. However, in its investor presentation, the company reported its net interest margin at 3.82% at the end of the March quarter and 4.14% at end-December.

"Margins are likely to moderate on a qoq (quarter-on-quarter) basis, as the book gradually moves towards quarterly reset," Equirus Capital said. Analysts at Prabhudas Lilladher said, "Reiterated guidance to maintain spread/ NIM at 2.75%/ 3.75% over the medium term; we see a similar margin trajectory, aided by a lower cost of funds." Motilal Oswal expects margins "to remain stable quarter-on-quarter at 4.2%" at the end of the March quarter.

Brokerages have given a wide range of estimates for the assets under management's on-year growth at the end of March quarter. Can Fin Homes' assets under management are likely to rise as high as 32.4% on year, according to Equirus Capital. While Prabhudas Lilladher expects the company's assets under management to grow 11.1% on year at INR 424.62 billion for the March quarter.

Sequentially, YES Securities and Prabhudas Lilladher estimate the company's assets under management to grow to 3.5-3.7% for the reporting quarter. "While 3Q AUM growth was impacted by higher prepayments, company expects to pick up the slack in Q4 and meet its FY26 disbursal target of INR 105 billion," Prabhudas Lilladher said in a report.

The housing financier's cost-to-income ratio is likely to be around 19% for the March quarter. "While credit costs are expected to stay benign at around 8-10 basis points on improving asset quality," Equirus said.

Can Fin Homes is a deposit-taking housing finance company, specialised in housing loan products, such as home loans, affordable home loans -- often aligned with government schemes such as Pradhan Mantri Awas Yojna, composite loans for plot purchase, and construction. Additionally, the company offers non-housing financial products such as loans against property, loans for commercial premises, and site loans.

Commentaries on disbursement trends, loan growth trajectory, guidance on net interest margin in a declining rate environment and an update on integration of information technology will be monitored by the Street when the company announces its March quarter earnings.

Of the six brokerage reports on the company available with Informist, five have a 'buy' recommendation on the stock with an average target price of INR 1,060. This is almost 24% higher than the current market price. One brokerage has a 'hold' call on the stock. On Monday, shares of the company ended at INR 855.50, down 1.5% from its previous close, on the National Stock Exchange. The stock has fallen nearly 7% since the company announced its December quarter earnings on Jan. 17.

Following are the Jan-Mar earnings estimates for Can Fin Homes Ltd. from four brokerage firms in descending order of the estimate of net profit, in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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