Synopsis: Telangana High Court orders a CVC investigation into alleged recruitment irregularities at Can Fin Homes Limited, highlighting whistleblower claims of hiring manipulation and retaliation.
This Small-Cap NBFC Stock, engaged in providing housing finance solutions, offering home loans, affordable housing loans, and mortgage products to individuals across urban and semi-urban markets in India, is down by 2.55 percent after the Telangana High Court orders a CVC probe into a ‘recruitment scam’.
With a market capitalization of Rs. 11,375.36 crores, the share of Can Fin Homes Limited has reached an intraday low of Rs. 836.00 per equity share, down nearly 2.55 percent from its previous day’s close price of Rs. 857.85. Since then, the stock has retreated and is currently trading at Rs. 854.30 per equity share.
Reason Behind the Falls
Can Fin Homes Limited has come under scrutiny after the Telangana High Court directed the Central Vigilance Commission (CVC) to investigate alleged recruitment irregularities at the company. According to a Moneycontrol report, the court observed that the complaint involves a public sector-linked entity and cannot be treated as an internal corporate matter, warranting a formal inquiry.
The allegations were raised by whistleblower Manoj K. Badal, an assistant general manager (HR), who claimed that senior officials pressured him to favour certain candidates during hiring. He further alleged that unqualified candidates were recommended through informal channels and that recruitment processes were manipulated, including tampering with evaluation records, leading to the exclusion of deserving applicants.
Badal also stated that he faced retaliatory action, including a transfer shortly after filing the complaint. Despite escalating the issue to regulatory authorities, no action was taken earlier. The High Court’s directive now places the matter under formal investigation, with the CVC expected to examine the claims and follow due process.
Assets Under Management (AUM)
Can Fin Homes Limited’s Assets Under Management (AUM) has shown steady and strong growth over the years, increasing from around Rs. 8,231 crore in FY15 to Rs. 38,217 crore by FY25. This consistent rise reflects the company’s expanding loan portfolio and growing customer base. Notably, the AUM crossed Rs. 40,000 crore in the calendar year 2025, highlighting sustained business momentum and effective growth strategies.
In Q3 FY26, the company’s segment-wise AUM remained largely stable, with the salaried private segment continuing to dominate at around 54 percent, slightly lower than the previous year. The salaried government segment saw a marginal increase to about 14 percent, while the SENP (self-employed non-professional) category improved to nearly 30 percent. Other segments, including PSU/banks and professionals, contributed a minimal share, indicating a continued focus on core salaried and self-employed segments.
On a product basis, housing loans continued to form the majority of AUM at approximately 73 percent, though slightly lower compared to the previous year. The share of housing CRE increased to around 11 percent, while LAP and mortgage loans rose to nearly 8 percent, reflecting gradual diversification. Other categories, including top-up loans and smaller segments, saw minor changes, suggesting steady expansion beyond traditional housing finance products.
Company Overview
Can Fin Homes Limited is an Indian public housing finance company headquartered in Bengaluru, Karnataka. Established in 1987 and sponsored by Canara Bank, it provides mortgage and housing loan solutions across India. The company is a key player in India’s retail housing finance sector.
Can Fin Homes offers housing loans for purchase, construction, and renovation, as well as non-housing loans such as loans against property, mortgage loans, and personal loans. It also accepts fixed and cumulative deposits. The company operates over 200 offices nationwide, with a strong footprint in southern India.
Recent Quarter Results
Coming into financial highlights, Can Fin Homes Limited’s revenue has increased from Rs. 986 crore in Q3 FY25 to Rs. 1,073 crore in Q3 FY26, which has grown by 8.82 percent. The net profit has also grown by 25 percent from Rs. 212 crore in Q3 FY25 to Rs. 265 crore in Q3 FY26. Can Fin Homes Limited’s revenue and net profit have grown at a CAGR of 24.96 percent and 22.08 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 9.34 percent and 18.2 percent, respectively. Can Fin Homes Limited has an earnings per share (EPS) of Rs. 73.2, and its debt-to-equity ratio is 6.61x.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post NBFC Stock Falls 3% After Telangana High Court Orders Investigation Over ‘Recruitment Scam’ appeared first on Trade Brains.