How has been the historical performance of Home First Finan?

Revenue and Profit Growth

Home First Finan’s net sales have shown a remarkable upward trend, rising from ₹256.74 crores in March 2019 to ₹1,525.66 crores by March 2025. This represents a compound growth trajectory reflecting the company’s expanding market presence and operational scale. Total operating income, which includes other operating income, similarly increased from ₹259.88 crores in 2019 to ₹1,529.95 crores in 2025, underscoring consistent top-line expansion.

Operating profit before depreciation and interest (PBDIT) excluding other income rose substantially from ₹58.73 crores in 2019 to ₹507.86 crores in 2025, indicating improved operational efficiency despite rising expenses. The operating profit margin, while fluctuating, remained strong, with a slight dip to 33.29% in 2025 from a peak of 39.32% in 2022, reflecting the company’s ability to maintain profitability amid growth.

Profit after tax (PAT) also exhibited significant growth, climbing from ₹45.20 crores in 2019 to ₹382.07 crores in 2025. The PAT margin has consistently hovered above 20%, reaching 25.04% in the latest fiscal year, which signals effective cost management and strong bottom-line performance.

Balance Sheet and Capital Structure

The company’s shareholder funds have expanded from ₹933.43 crores in 2020 to ₹2,521.28 crores in 2025, reflecting strong equity growth and retained earnings accumulation. Reserves have similarly increased, reaching ₹2,445.75 crores in 2025, which supports the company’s financial stability and capacity for reinvestment.

Total liabilities have grown in line with business expansion, rising from ₹3,480.21 crores in 2020 to ₹12,211.67 crores in 2025. Notably, total debt has increased from ₹2,493.80 crores in 2020 to ₹9,550.70 crores in 2025, indicating a leveraged growth strategy. Despite this, the company has maintained a healthy book value per share, which improved from ₹119.21 in 2020 to ₹279.97 in 2025, signalling enhanced shareholder value.

Asset growth has been robust, with total assets increasing from ₹3,480.21 crores in 2020 to ₹12,211.67 crores in 2025. The company’s non-current assets and long-term loans and advances have expanded significantly, supporting its operational and lending activities.

Cash Flow and Operational Efficiency

Cash flow from operating activities has remained negative over the years, reflecting the company’s investment in growth and working capital requirements. For instance, operating cash flow was negative ₹2,198 crores in 2025, compared to negative ₹823 crores in 2020. This trend is consistent with the company’s rapid expansion and increased lending portfolio.

Cash flow from financing activities has been positive, with ₹2,217 crores raised in 2025, supporting the company’s capital needs. Net cash inflow was modest at ₹18 crores in 2025, indicating a balanced approach to liquidity management despite aggressive growth.

Summary of Historical Performance

Over the six-year period ending March 2025, Home First Finan has exhibited strong financial growth characterised by a more than fivefold increase in net sales and a near sevenfold rise in profit after tax. The company’s operating margins have remained healthy, and earnings per share have improved substantially, reflecting enhanced profitability and shareholder returns.

While the company’s debt levels have increased significantly to fund expansion, the growth in shareholder equity and book value per share suggests a solid capital foundation. The negative operating cash flows highlight the capital-intensive nature of the business, but these have been offset by financing inflows, maintaining liquidity.

Overall, Home First Finan’s historical performance indicates a well-managed growth trajectory with strong revenue and profit expansion, balanced by prudent financial management and capital structure optimisation.

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