Can Fin Homes Q2 profit at Rs 275 crore as new systems cut disbursements
Can Fin Homes, the Canara Bank-promoted lender that mainly gives home loans to individuals, said its board on October 9, 2026 approved Q2 FY27 net profit of Rs 274.61 crore on total income of Rs 1,131.18 crore . Profit grew year on year as interest from a larger loan book offset costs, even as disbursements fell during full rollout of new lending software . The quarter leaves earnings steady but near-term growth dependent on normal lending after the switch.
Profit rose as bigger book lifted income and margins held
Larger book lifted income and profit
Sources: Total income and profit after tax — ; Net interest income — .
| Rs crore | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Total income | 1,131.18 | 1,096.33 | 1,049.45 |
| Net interest income | 431 | 427 | 404 |
| Profit after tax | 274.61 | 267.82 | 251.43 |
Interest income was almost all of total income. The presentation frames the same quarter as operating profit of Rs 355 crore and profit before tax of Rs 347 crore . For the half year, net interest income was Rs 859 crore against Rs 767 crore in H1 FY26, up 12%, and profit after tax was Rs 542 crore against Rs 475 crore, up 14% .
Credit cost stayed light. Provision for expected loss and write-offs was Rs 7.39 crore in the filing , shown as Rs 8 crore in the presentation against Rs 13 crore in Q1 and Rs 3 crore a year earlier . In July management said stage 2 and stage 3 balances had fallen from March, bounce ratios had improved for six quarters, and it aimed to hold credit cost near 10 basis points .
Lending margin held near 3.9% as funding cost eased with yield
Source: .
| Percent | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Yield on loans | 9.84 | 9.81 | 10.08 |
| Cost of borrowing | 7.03 | 6.98 | 7.17 |
| Spread | 2.81 | 2.83 | 2.91 |
| Net interest margin | 3.89 | 3.81 | 4.02 |
| Cost to income | 19.59 | 19.52 | 18.55 |
Yield is interest earned on loans. Cost is interest paid on borrowings. Spread is the difference. Margin scales it to earning assets.
Both yield and cost were below last year after loans moved to quarterly reset and high-cost borrowings were replaced . Cost edged up from June, so spread eased year on year while margin improved sequentially . Management had guided to hold margin around 3.81% plus and cost-to-income near 19.5% in FY27 as technology amortisation kicked in .
Fresh lending fell but loan book still grew to Rs 43,539 crore
Source: .
| Rs crore | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| New approvals | 2,604 | 2,795 | 2,680 |
| Disbursements | 2,373 | 2,609 | 2,545 |
| Outstanding loan book | 43,539 | 42,961 | 39,657 |
The book was higher than June and last September despite lower fresh approvals and disbursements. The lender is a 38-year-old deposit-taking housing finance company promoted by Canara Bank, with 274 branches across 21 states and union territories at September-end .
The miss against plan matters. In July management kept a Q2 target of Rs 3,000 crore after doing Rs 2,609 crore in Q1 . Actual Q2 at Rs 2,373 crore was below that and below last year . For H1 as a whole, approvals were Rs 5,399 crore against Rs 4,739 crore, up 14%, and disbursements were Rs 4,982 crore against Rs 4,560 crore, up 9% .
System switch lowered August and September lending
Source: .
| Period | Disbursement, Rs crore |
|---|---|
| Q1 FY27 monthly average | 869.56 |
| July 2026 | 903.15 |
| August 2026 | 738.04 |
| September 2026 | 728.55 |
Management linked the softness to Project Tejas, a Rs 297-crore seven-year digital programme for efficiency, governance and data-based decisions . Loan origination, loan management and reporting modules were fully implemented in Q2 . The estimated impact across 252 branches was Rs 357.82 crore . The July plan was month-end migration for the remaining 245 branches after a 5-branch pilot live on July 8 .
Lower repayments helped book add net growth
Source: .
| Rs crore | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Opening book | 42,961 | 42,209 | 38,773 |
| Disbursement | 2,373 | 2,609 | 2,545 |
| Amortisation plus prepayment | 1,795 | 1,857 | 1,661 |
| Closing book | 43,539 | 42,961 | 39,657 |
| Run-down rate, percent | 4.17 | 4.40 | 4.28 |
Run-down is repayments, prepayments and balance transfers that shrink the book. The rate eased from June, so net addition stayed positive . For the full year management had budgeted Rs 13,000 crore disbursement against Rs 7,000 crore run-down for about 14% asset growth, and said higher prepayments would need slightly higher disbursements .
Bad loans stayed below 1% with cover steady
Source: .
| Asset quality | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Gross bad loans, Rs crore | 392 | 376 | 373 |
| Gross ratio, percent | 0.90 | 0.87 | 0.94 |
| Net bad loans excluding overlay, Rs crore | 185 | 171 | 191 |
| Net ratio, percent | 0.42 | 0.40 | 0.48 |
| Total delinquency, percent of book | 8.41 | 8.01 | 9.58 |
Gross bad loans rose in rupees but the ratio improved year on year as the book grew. Net bad loans fell year on year . Total delinquency including early overdue rose sequentially but was below last year .
Provision for bad loans was Rs 207 crore plus a constant Rs 59 crore management overlay . The filing separately discloses provision coverage of 52.82%, capital adequacy of 23.34% and liquidity coverage of 100% at September-end . Salaried borrowers were 67% of the book against 70% last year, with self-employed rising to 33% from 30% .
New software is live but accounts still face reconciliation checks
The filing says the new loan origination, management and collection application was rolled out across all branches in the September quarter . An integrated enterprise system for operations, accounting and reporting was also migrated in phases from July to September 30 .
Results were prepared from source systems plus automated compilation while review and reconciliation continue . Auditors emphasised that matter without changing their conclusion, noting migration is being checked by two external firms and any adjustments will follow accounting standards .
Small penalty and share actions closed without profit impact
The company cut loan assets by Rs 1.65 crore for demand drafts cancelled before finalisation, with no material impact, after a July 2026 housing finance advisory on charging of interest . It paid a Rs 2.70 lakh penalty to the Reserve Bank on June 22, 2026 for Fair Practices Code lapses and said it fixed account statements from April 1, 2026 to show principal, interest and charges separately .
Shareholders approved a final dividend of Rs 8 per Rs 2 share for FY26 paid on August 3, 2026 . The company granted 32,435 employee stock options on June 5, 2026 and allotted 466 shares on exercise, leaving paid-up capital at Rs 26.63 crore .
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