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Informist, Thursday, Jan. 15, 2026

By Udita S. Jaiswal

MUMBAI – Can Fin Homes Ltd. is expected to report healthy net interest income and profit after tax for the December quarter, on the back of a steady loan book, stable margins, and spreads, according to analysts.

Can Fin Homes, the housing finance subsidiary of Canara Bank, is expected to report a standalone net profit of INR 2.53 billion for the December quarter, up over 19% on year, according to the average of estimates from six broking firms. Prabhudas Lilladher Pvt. Ltd. has the lowest estimate of INR 2.39 billion for net profit, while the highest estimate of INR 2.66 billion is from Motilal Oswal Financial Services Ltd.

The company's net interest income for the reporting quarter is expected to rise nearly 2% on quarter and over 19% on year to INR 4.11 billion, according to the average of the six estimates. The lowest estimate for net interest income is INR 3.91 billion from Prabhudas Lilladher, while the highest estimate of INR 4.24 billion is from YES Securities (India) Ltd.

Can Fin Homes' interest income in the September quarter was INR 10.43 billion, up over 9% on year, and its net profit was INR 2.51 billion, up nearly 19%. The company will report its earnings for the December quarter Saturday.

The net interest margin of Can Fin Homes is expected to grow 15 basis points to 3.7% driven by lower cost of funds from repricing and National Housing Bank sanction, Prabhudas Lilladher said. This is also expected to give the company leeway to offer competitive rates in the second half of the financial year ending March, the brokerage said. The housing finance company's assets under management are expected to grow 10% on year, Sharekhan Ltd. said. This growth is driven by festival demand, improving economic growth, and the reduction in the goods and services tax on automobiles and consumer durables, it said.

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

The company's loan book is estimated to grow around 10% on year, driven by a recovery in Karnataka and Telangana, according to Motilal Oswal. Telangana had earlier faced significant negative growth due to demolitions and property regularisation challenges, leading to market uncertainty, while Karnataka was affected by disruptions arising from data linkage problems between sub-registrar offices and local bodies, affecting e-Khata issuances.

"Can Fin is likely to post a strong performance with disbursements in a guided range and some improvement in asset quality and margins," YES Securities said.

Outlook for loan growth in 2026-27 (Apr-Mar) and FY28 and guidance on net interest margin will be monitored by the Street when it announces its December quarter earnings.

Analysts expect the company to see strong growth in the March quarter to meet its guidance of INR 105 billion disbursements in FY26. The housing company has received a sanction of INR 1.5 billion from the National Housing Bank which supported the cost of finance for the company during Oct-Dec, according to Prabhudas Lilladher.  

Of the 13 brokerage reports on the company available with Informist, 11 have a "buy" recommendation on the stock with an average target price of INR 941. This is 2.5% higher than the current market price. Two brokerages have a "hold" recommendation on the stock. On Wednesday, shares of the company ended at INR 917.45, up 2.6% from its previous close, on the National Stock Exchange. The stock has risen over 9% since the company announced its September quarter earnings on Oct. 18. 

Following are the Oct-Dec earnings estimates for Can Fin Homes Ltd. from six brokerage firms in descending order of the estimate of net profit, in INR million:

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Edited by Tanima Banerjee

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