How has been the historical performance of Can Fin Homes?

Revenue and Profit Growth

Over the past six years, Can Fin Homes has seen its net sales increase substantially, from ₹1,726.95 crores in March 2019 to ₹3,878.26 crores in March 2025. This represents a more than twofold growth, reflecting robust demand and effective business expansion. Operating profit (PBDIT) excluding other income also rose steadily, reaching ₹1,088.98 crores in the latest fiscal year, up from ₹468.08 crores six years prior. The operating profit margin has remained healthy, fluctuating between 25.99% and 32.41%, indicating efficient cost management despite rising employee and manufacturing expenses.

Profit after tax (PAT) has followed a similar upward trend, increasing from ₹296.74 crores in March 2019 to ₹857.17 crores in March 2025. The PAT margin has consistently hovered above 17%, peaking at 23.7% in 2022, and stabilising at 22.1% in the most recent year. Earnings per share (EPS) have correspondingly improved, rising from ₹22.29 to ₹64.38, signalling enhanced shareholder value.

Balance Sheet and Capital Structure

Can Fin Homes’ balance sheet has strengthened significantly, with shareholder funds rising from ₹2,150.07 crores in March 2020 to ₹5,067.49 crores in March 2025. Total reserves have more than doubled in the same period, reaching ₹5,040.86 crores. The company maintains a conservative capital structure, with no long-term borrowings reported in recent years. However, short-term borrowings have increased from ₹18,443.36 crores in 2020 to ₹34,863.87 crores in 2025, reflecting the company’s funding strategy to support growth.

Asset growth has been robust, with total assets expanding from ₹21,009.69 crores in 2020 to ₹40,897.98 crores in 2025. Non-current assets, primarily long-term loans and advances, have also increased substantially, indicating a growing loan book. The book value per share has improved markedly, rising from ₹161.46 in 2020 to ₹380.54 in 2025, underscoring the company’s enhanced net worth.

Cash Flow and Operational Efficiency

Cash flow from operating activities has shown a marked improvement, turning positive in recent years after several years of negative cash flow. In the fiscal year ending March 2025, operating cash flow stood at ₹933 crores, a significant recovery from negative cash flows recorded in earlier years. Investing activities have consistently involved outflows, reflecting ongoing investments in capital and loan advances. Financing activities have fluctuated, with notable inflows in 2022 and 2023, followed by outflows in 2024 and 2025, indicating active management of capital resources.

Despite rising interest expenses, which increased from ₹1,169.10 crores in 2019 to ₹2,488.16 crores in 2025, the company has maintained profitability and managed its liabilities effectively. The gross profit margin remains negative due to the nature of interest costs exceeding operating profits before interest, a common characteristic in housing finance companies.

Summary and Outlook

Overall, Can Fin Homes has exhibited a strong historical performance characterised by steady revenue growth, improving profitability, and a solid balance sheet. The company’s ability to increase earnings per share and book value per share consistently over the years reflects sound management and operational efficiency. While interest costs remain substantial, the firm’s net profitability and cash flow improvements suggest resilience and effective financial stewardship.

Investors may find Can Fin Homes’ track record reassuring, especially given its expanding loan portfolio and prudent capital management. The company’s growth trajectory and financial health position it well to capitalise on opportunities in the housing finance sector going forward.

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