Repco Home Finance Limited (NSE: REPCOHOME, BSE: 535322) reported its financial results for the quarter ended December 31, 2025, showing growth in its loan book, stable profitability and an improvement in asset quality, according to the company’s Q3 FY26 earnings presentation.
Financial performance
For the third quarter of FY26, Repco Home Finance reported total income of Rs. 457 crore, up from Rs. 445 crore in the same period last year and higher than Rs. 446 crore in the previous quarter. Net interest income rose to Rs. 208 crore from Rs. 198 crore a year earlier.
Profit after tax (PAT) for the quarter stood at Rs. 109 crore, compared with Rs. 107 crore in Q3 FY25 and Rs. 107 crore in Q2 FY26. Profit before tax increased to Rs. 149 crore from Rs. 144 crore a year ago.
Operating expenses increased on a sequential basis, reflecting higher employee costs. The company said employee costs rose due to provisions related to gratuity under the new labour code and annual leave encashment.
Business momentum
Loan sanctions in Q3 FY26 were Rs. 1,087 crore, compared with Rs. 806 crore in Q3 FY25 and Rs. 1,206 crore in Q2 FY26. Loan disbursements were Rs. 1,064 crore, up from Rs. 761 crore a year earlier and broadly flat sequentially.
The overall loan book stood at Rs. 15,394 crore as of December 31, 2025, compared with Rs. 14,155 crore a year earlier. The company’s assets under management were Rs. 15,033 crore as of September 30, 2025.
Loans to the non-salaried segment accounted for 53% of the outstanding loan book, while salaried customers made up 47%. Housing loans represented 71% of the portfolio, with home equity products contributing 29%.
Asset quality and provisioning
Repco Home Finance reported an improvement in asset quality during the quarter. Gross non-performing assets (GNPA) declined to 2.92% at the end of December 2025 from 3.86% a year earlier and 3.16% at the end of September 2025.
The share of Stage-2 assets fell to 8.02% from 10.56% in Q3 FY25 and 8.81% in Q2 FY26. The company said the decline reflected improved collection efficiency and portfolio quality.
Total expected credit loss (ECL) provisions stood at Rs. 359 crore as of December 31, 2025, compared with Rs. 489 crore at the end of December 2024.
Capital position and funding
Repco Home Finance reported a capital adequacy ratio of 37.22% and net owned funds of Rs. 3,574 crore at the end of the quarter. The average loan size was Rs. 13 lakh, and the company had 113,939 live loan accounts.
The borrowing profile remained diversified. Commercial banks accounted for the majority of borrowings, followed by the National Housing Bank and Repco Bank. The weighted average cost of borrowings was around 8.5% in Q3 FY26.
The company maintained credit ratings of AA- (stable) for term loans and non-convertible debentures and A1+ for commercial paper.
Geographic footprint
Repco Home Finance operated a network of 236 branches and satellite centres across 12 states and one Union Territory. Tamil Nadu remained the largest market, accounting for about 57% of the loan book, followed by Karnataka, Maharashtra and Telangana.
Summary
Repco Home Finance delivered stable quarterly earnings in Q3 FY26, supported by growth in sanctions and disbursements and a larger loan book. Asset quality improved during the quarter, with lower GNPA and Stage-2 assets. The company maintained a strong capital position and a diversified funding base as it continued to expand its retail housing finance portfolio.