Repco Home Finance profit slips as interest costs outpace revenue
The consolidated operating margin remained above the 55.79% median for 96 reporting financial-services peers, while asset quality improved.
Filed 05 Nov 2026, 18:06 IST · after market close · Repco Home Finance Ltd (REPCOHOME)
Key takeaways
- Consolidated net profit fell 2.08% quarter on quarter to Rs 119.09 cr as interest expense rose 3.86%.
- Operating margin narrowed 0.26 percentage points to 87.23% because expenses grew 4.22%, faster than revenue at 2.08%.
- Management said Q2FY27 loan sanctions rose to Rs 1,359 cr while GNPA declined to 2.4%.
Price around the results
Interest costs pulled profit below the operating line
Repco Home Finance's consolidated revenue increased 2.08% quarter on quarter, but net profit declined 2.08% to Rs 119.09 cr. Operating profit still rose 1.77%, but interest expense increased 3.86% to Rs 261.00 cr, taking profit before tax down 1.78%. Other income contributed 4.83% of pre-tax profit, so it was not the main driver of reported earnings.
Expense growth trimmed the operating margin
Expenses grew 4.22% quarter on quarter against 2.08% revenue growth, narrowing the consolidated operating margin by 0.26 percentage points to 87.23%. The tax rate also increased by 0.24 percentage points to 21.88%, adding a small further drag on net profit. With only one earlier quarter in the trend, the data shows a sequential margin decline but not yet a multi-quarter direction.
Sanctions rose as asset-quality indicators improved
Management said loan sanctions rose to Rs 1,359 cr in Q2FY27, while disbursements stood at Rs 1,205 cr. The company said it has expanded by deepening its presence in existing regions and entering new ones. Management also reported that GNPA declined to 2.4% and stage-2 assets to 7.0%.
Margin remained well above the reported peer median
Repco Home Finance's 87.23% operating margin was 31.44 percentage points above the 55.79% median for 96 financial-services peers that had reported the same quarter. The results were filed after market close, so there is no reported market reaction to assess yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹477 cr | ₹468 cr | +2.08% |
| Other income | ₹7 cr | ₹8 cr | -4.04% |
| Expenses | ₹61 cr | ₹58 cr | +4.22% |
| Operating profit | ₹416 cr | ₹409 cr | +1.77% |
| Operating margin (%) | 87.23% | 87.49% | — |
| Interest | ₹261 cr | ₹251 cr | +3.86% |
| Depreciation | ₹10 cr | ₹10 cr | -0.19% |
| Profit before tax | ₹152 cr | ₹155 cr | -1.78% |
| Tax | ₹33 cr | ₹34 cr | -0.68% |
| Net profit | ₹119 cr | ₹122 cr | -2.08% |
| EPS (₹) | ₹19.04 | ₹19.44 | -2.06% |
Operating margin of 87.23% compares with a Financial Services sector median of 55.79% across 96 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Loan sanctions rose to Rs. 1,359 crores and disbursements rose to Rs. 1,205 crores in Q2 FY27.
- GNPA declined to 2.4% and stage-2 assets declined to 7.0% in Q2 FY27.
Expansion
- RHFL has grown by deepening its reach in existing regions and expanding to new regions.
What to watch
- Whether operating margin holds above 87.23% as expenses continue to grow faster than revenue.
- Whether loan sanctions remain near the Rs 1,359 cr reported for Q2FY27.
- Whether GNPA stays at or below 2.4% and stage-2 assets at or below 7.0%.