Synopsis: The sharp Q4 PAT jump was partly driven by a one-time deferred tax benefit of Rs. 49.38 crore; the board simultaneously disclosed a management transition, with the incoming Deputy Managing Director pending RBI approval.
A Bengaluru-based housing finance company came into focus on Thursday as its board wrapped up a full slate of decisions, audited full-year results, a final dividend recommendation, and a management change in a single sitting. Net profit for the year ended March 31, 2026, rose 26.7 percent over FY2024-25, with the loan book crossing Rs. 41,647 crore.
With a market capitalisation of Rs. 12,083.74 crore, the shares of Can Fin Homes Limited trading at Rs.907.5 per share, was up by 3.77 percent from its previous close of Rs.909.6. The stock is trading at a P/E of 11.16
For Q4 FY2025-26, Can Fin Homes reported total income from operations of Rs. 1,075.22 crore against Rs. 999.65 crore in Q4 FY2024-25, a 7.6 percent year-on-year rise. Profit before tax for the quarter came in at Rs. 352.98 crore against Rs. 279.15 crore up 26.4 percent, while PAT reached Rs. 345.67 crore, a 47.8 percent jump over Q4 FY25’s Rs. 233.92 crore.
Two factors drove the PAT expansion beyond the PBT growth rate. First, credit provisions fell sharply: ECL provisions for Q4 FY26 were just Rs. 0.56 crore against Rs. 15.43 crore in Q4 FY25, reflecting the company’s improved asset quality trajectory.
Second, the tax line was unusually light, a deferred tax benefit of Rs. 51.48 crore nearly offset a current tax charge of Rs. 58.79 crore, bringing effective tax for the quarter to Rs. 7.31 crore, an implied rate of just 2.1 percent.
This DTA was created on standard asset provisions and undrawn loan commitment reserves that the company had not previously recognised; the results notes explicitly disclose the full-year impact at Rs. 49.38 crore. Adjusting for both effects, the underlying Q4 PAT trajectory tracks closer to the 26-28 percent growth range seen in earlier quarters.
For the full year, total income reached Rs. 4,218.24 crore against Rs. 3,879.62 crore in FY2024-25, an 8.7 percent rise. Full-year PBT grew 21.0 percent to Rs. 1,303.57 crore, while PAT came in at Rs. 1,085.75 crore against Rs. 857.17 crore in FY25. The full-year effective tax rate of 16.7 percent was materially lower than the 20.5 percent seen in FY25, reflecting the DTA impact. Basic and diluted EPS for FY26 stand at Rs. 81.54, against Rs. 64.37 in the prior year.
The company’s loan portfolio reached Rs. 41,647 crore as at March 31, 2026, compared to Rs. 37,696 crore a year ago growth of 10.5 percent. This falls marginally short of the management’s stated 11-12 percent AUM growth guidance for FY26, which the company had attributed to elevated prepayments during the year.
Gross NPA was 0.85 percent as at March 31, 2026, against 0.87 percent a year prior, while Net NPA stood at 0.37 percent. The Provision Coverage Ratio was 56.23 percent, and the Capital Risk Adequacy Ratio (CRAR) held at 23.15 percent well above the regulatory minimum.
Employee expenses for Q4 jumped 52.6 percent year-on-year to Rs. 46.90 crore from Rs. 30.72 crore, partly on account of the company’s branch expansion and the implementation of four new labour codes notified by the Government in November 2025, which added an estimated Rs. 16.86 lakhs to gratuity provisions. For the full year, employee costs rose to Rs. 176.91 crore from Rs. 112.01 crore a line worth watching through FY27 as the branch network absorbs new hires.
Dividend Update
The board declared a final dividend of Rs. 8 per equity share (face value Rs. 2), subject to shareholder approval at the upcoming AGM. Combined with the interim dividend of Rs. 7 per share paid on December 29, 2025, the total payout for FY2025-26 stands at Rs. 15 per share. At the April 24 closing price of Rs. 909.6, the trailing dividend yield for FY26 works out to approximately 1.65 percent.
Business Overview
Can Fin Homes Limited is a deposit-taking housing finance company registered with the National Housing Bank, incorporated in Bengaluru in 1987 by Canara Bank, which currently holds a 29.99 percent promoter stake. The company focuses on smaller-ticket housing loans to salaried and self-employed non-professional borrowers across 21 states.
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