Can Fin Homes Ltd Management Discussions

ECONOMY OVERVIEW

Indian Economic Overview

FY 2025–26 was one marked by the presence of challenging and evolving global scenarios. The year witnessed persistent geopolitical uncertainties that fuelled repeated disruptions to the supply chains and continuous volatility in commodity markets. Tension in West Asia, that included the Israel–Palestine conflict and then broader regional hostilities, especially the ongoing 2026 Iran war which involved a blockade of the crucial Strait of Hormuz, created a tremendous pressure, especially on those countries whose economies are dependent on crude oil import. The prolonged Russia–Ukraine conflict too continued to exert pressure on crude oil prices and together all these impacted the global fertiliser costs and food supply chains which caused inflationary concerns across global markets.

Against this backdrop, the Indian economy demonstrated considerable resilience and remained one of the fastest-growing 1 major economies globally. Strong domestic consumption, healthy tax collections, Government capital expenditure, robust services activity and infrastructure investments supported this economic momentum during these crucial periods. The Indian economy continued to demonstrate strong resilience across various spectrums which included sectors such as manufacturing, construction, logistics, housing and also various digital ecosystems. The Government of Indias (GOIs) continued focus on infrastructure development, urbanisation, financial inclusion, digitisation and formalisation of the economy further strengthened long-term economic fundamentals.

Outlook

Despite the geopolitical tensions affecting the global market scenario, with impacts such as rising inflation throughout

the world, Indian economy continued to show resilience in the FY 2025-26. This good show in terms of its economy was mainly due to the strong financial fundamentals. During FY 2025–26, India maintained its position among the worlds fastest-growing2 major economies.

Stable tax collections, rising domestic demand and sustained Government capital expenditure were the primary domestic factors that ensured that the economy continued to grow steadily. Continued investments in infrastructure, transportation, urban development, logistics, renewable energy, digital public infrastructure, and manufacturing have further strengthened the countrys medium- to long-term growth prospects.

Government-led initiatives such as infrastructure expansion, housing development programmes, financial inclusion measures, digital governance reforms and continued emphasis on formalisation of the economy are expected to remain key structural growth drivers in the days to come as well. Increased public investment in roads, railways, urban transit, industrial corridors, logistics parks and Smart City initiatives are expected to generate, multiplier effects across employment, income generation and credit demand. Urbanisation trends, migration towards organised urban centres, rising disposable incomes, demographic advantages and aspirational home ownership continue to support long-term demand for housing finance3 in India. The affordable and mid-income housing segment too is expected to remain particularly attractive among the Indian masses, supported by favourable demographics, growing nuclear families and increased formal credit penetration.

Indias financial ecosystem continues to witness structural strengthening through improved digitisation, enhanced regulatory oversight, wider formal credit access and stronger banking and NBFC balance sheets. The expansion of digital lending ecosystems, Aadhaar-enabled onboarding, account aggregation infrastructure and data-driven underwriting

frameworks are expected to further improve financial inclusion and customer access to credit. The Governments continued emphasis on affordable housing, infrastructure-led development, digitisation and ease of doing business are expected to create a supportive environment for retail lenders and housing finance institutions. Low mortgage penetration levels relative to global benchmarks continue to present a significant long-term opportunity for the housing finance sector.

At the same time, certain challenges also continue to exist. These include competitive pricing pressures from banks and NBFCs, evolving regulatory expectations, funding cost sensitivities linked to interest rate cycles and external macroeconomic volatility. Institutions with prudent underwriting, strong governance, diversified funding access, technology enabled operations and disciplined risk management are expected to remain better positioned to navigate these challenges. Against this backdrop, the outlook of the Indian housing finance sector4 remains positive.

The Company is well positioned to leverage emerging growth opportunities, supported by the strong parentage of Canara Bank, a well-established institutional legacy spanning over 39 years, an extensive pan-India branch network, prudent underwriting standards, consistently healthy asset quality, a diversified funding profile, and ongoing digital transformation initiatives.

The Company remains focused on sustainable growth through geographic diversification, operational efficiency enhancement, digital acceleration, customer-centric service delivery and a fully standardised portfolio expansion while preserving asset quality and governance standards. Given the favourable long-term structural drivers supporting Indias housing finance market, management remains optimistic about the Companys ability to continue delivering stable growth, operational resilience, and long-term stakeholder value creation.

Industry Overview

Housing Finance Industry

As India remains favourably positioned for sustained medium to long-term growth, Indias housing finance sector also continued to demonstrate healthy growth4 during FY 2025–26. This healthy and steady growth was primarily supported by favourable demographic and

structural drivers which included rising urbanisation, increasing disposable income, demographic advantages, infrastructure development and digital transformation. The GOI throughout the FY 2025–26 continued its renewed focus on housing, urban infrastructure, logistics, transportation and affordable finance and all these successfully created positive spillover effects across the business ecosystem which the housing finance industry could take the benefit of. Persistent urbanisation, rising income levels, aspiration for home ownership, growth in first-time homebuyers and sustained demand in affordable and mid-income housing segments continued to support sector growth. Some of the crucial factors that contributed significantly to the growth of this sector included:

Low mortgage penetration compared to global benchmarks,

Rapidly increasing formalisation of income and credit in the countrys new taxation and regulatory regime,

Rising income of both the entrepreneurs as well as the salaried workforce,

Enhanced credit accessibility scenario throughout the country and

Increased Government focus on affordable housing and urban development.

The sector also continued to witness growing digital adoption, resulting in improvements in customer onboarding, underwriting efficiency, turnaround time and customer experience. The demand scenario remained relatively strong more or less throughout the FY 2025-26 across housing-linked retail credit products, particularly in urban and semi-urban markets.

Indian Housing Industry

The Indian housing industry continued its upward journey during FY 2025–26. This was driven not only by rising housing demand but also by changing consumer preferences, increased project formalisation, and growing participation from the organised developer groups. The sector witnessed continued momentum in residential project launches across many Indian cities which included major developments in both the metros as well as the Tier II cities as developers focused on timely execution, improved project quality, and customer-centric offerings. In addition,

integrated townships, gated communities, and mixed-use developments continued its momentum, reflecting evolving urban lifestyle preferences and growing demand

Growth Drivers

Some of the significant growth drivers especially for the Indian housing finance industry included:

Stable interest rate regime encouraging long-term borrowing

A relatively stable interest rate regime prevalent during FY 2025–26 supported by a long-term borrowing in the countrys housing finance sector by improving borrower confidence and also repayment visibility. Stability in lending rates encouraged prospective homebuyers to make long-term financial commitments with greater certainty regarding their Equated Monthly Instalment (EMI) obligations, thereby supporting demand for housing loans across salaried as well as self-employed borrower segments. In addition, a stable rate regime enabled housing finance companies and lenders to manage borrowing costs more efficiently, improve asset-liability planning and offer competitive loan products, which further contributed towards sustaining momentum in the housing finance market.

Increased affordability due to rising per-capita income Rising per-capita income levels and improved household financial stability helped enhancing housing affordability across various income categories of the country during FY 2025–26. Growth in disposable income, expanding employment opportunities and increasing participation of the middle-income population in the formal economy strengthened purchasing power and improved the ability of borrowers to access housing finance. Higher affordability levels also contributed towards increased demand for quality residential housing. This trend of opting for better housing quality is specially observed particularly among first-time homebuyers and younger generation of the countrys demographics which are now aspiring for home ownership. This whole thing has supported sustained growth in the Indian housing and housing finance sectors.

Rapid Urbanisation

Continued urban expansion across the country, coupled with growing economic activity in urban and semi-urban centres, has remained a key factor supporting demand for residential housing. Government investments in urban infrastructure, metro rail projects, highways, logistics corridors, smart cities, industrial parks and public utilities

have further improved the attractiveness of multiple growth centres across the country and this human influx continues to drive demand for residential housing in the urban centres throughout the country. Expansion of economic activity across Tier II and Tier III cities strengthened the rising housing demand and enabled its spread across markets beyond the traditional metropolitan hubs.

Rising Income and Aspirational Demand

The growing middle-income population, coupled with increasing aspirations for improved living standards, has strengthened housing demand across both salaried and self-employed customer categories. Home ownership continues to be viewed as an important financial and social milestone by Indian households, particularly among younger working populations and first-time homebuyers. Growth in disposable income, improving household financial stability and increasing preference for home ownership continue to support housing demand across salaried and self-employed borrower segments.

Technology-led Financial Inclusion

Digital lending ecosystems, alternate data usage, Aadhaar-linked verification systems and improved credit accessibility have expanded formal credit reach and improved customer convenience. The digital lending ecosystems have enabled housing finance institutions to expand their reach beyond traditional branch-centric models and serve customers across wider geographies with greater efficiency. Improved data availability and analytics capabilities are also supporting more informed credit decisions while also enabling better fraud control and customer risk assessment.

Low mortgage penetration indicating long-term sector opportunity

India has continued to have significant low mortgage penetration compared to global benchmarks, with mortgage-to-GDP ratio remaining substantially below the developed market levels. This low mortgage penetration is an indication of the existence of substantial untapped opportunity for housing finance growth. Its a fact that formal credit access expands across emerging borrower segments and also diverse geographies. This presents a tremendous growth opportunity for the housing finance industry which still remains untapped.

Demand from first-time homebuyers

First-time homebuyers continue to remain a major driver for the growth of the Indian housing finance sector. Rising urbanisation, improving affordability, favourable demographics and increasing financial formalisation are the primary reasons why we still have the huge potential tap the demands of the first-time homebuyers. The Company continues to benefit from its strong positioning in this particular customer segment and presents customer-centric offerings to this segment with fully operational capabilities at their disposal.

Company Overview

Can Fin Homes Limited, promoted by Canara Bank, is a leading housing finance company with a proven track record of over 39 years. Established in 1987, it provides Housing and Non-Housing Loans. Headquartered in Bengaluru, Karnataka, it offers Housing Loans (for Construction, Flat Purchase, Repairs, Renovations), Mortgage Loans (LAP), Composite Loans (Land Purchase and House Construction), Plot Loans and Loans for Commercial Properties (LCP). The company also offers Deposit Schemes such as Fixed and Cumulative Deposits, with added benefits for senior citizens. Listed in 1989, Can Fin has a pan-India presence across 21 States with 249 branches nationwide.

Disbursements

Disbursements remain a key indicator of the Companys ability to convert sourcing opportunities into productive assets while maintaining strong credit standards. The company recorded disbursements of 10,531 crore during

FY26 as compared to 8,568 crore during the previous year, reflecting strong business traction across multiple geographies. Quarter-on-quarter growth momentum remained encouraging with disbursements increasing from

2,015 crore in Q1 FY26 to an all-time high of 3,246 crore in Q4 FY26. The strong disbursement momentum witnessed during FY26 was supported by sustained demand across affordable and mid-income housing segments, expansion into newer markets, improved sourcing capabilities and enhanced digital processing infrastructure. The Company continues to focus on maintaining a healthy balance between growth and asset quality by ensuring that disbursement expansion is supported by disciplined underwriting, robust risk assessment and efficient credit appraisal processes.

Sourcing Mix

The Company continues to maintain a balanced sourcing mix across direct sourcing, developer relationships, branch-led sourcing and digitally generated leads, thereby reducing dependence on any single acquisition channel. During FY26, focused efforts were undertaken by the company to strengthen direct sourcing capabilities through a dedicated marketing team. The efforts were supported by regular ongoing training and lead generation initiatives. The increasing use of digital outreach, including social media engagement, search engine optimisation and targeted campaigns, further the companys enhanced customer reach, improved lead quality and in overall contributed to the Companys sustainable business growth.

Product Mix

The company continues to maintain a diversified product portfolio comprising Housing Loans, Mortgage Loans and

other Retail Lending Products catering to varied customer requirements. This balanced product mix supports portfolio diversification, sustainable growth and stable

earnings generation.

Customer Segment

The company caters to a varied customer base, which consists of salaried individuals, self-employed professionals and self-employed non-professional (SENP) customers across affordable and middle-income housing segments. The diversified customer base supports balanced portfolio growth and improved risk distribution.

Geographical Diversification

The Company continues to expand its geographical footprint across multiple states and urban as well as

semi-urban markets to reduce concentration risks and enhance business opportunities. Geographic diversification supports balanced portfolio growth and wider customer reach.

Asset Under Management (AUM)

The Company continued to witness healthy expansion in its Asset Under Management (AUM) during FY 2025–26, supported by sustained disbursement, stable asset quality and continued demand across markets in the housing finance segment. The total loan book of the Company crossed

42,209 crore during the year. It demonstrated a healthy year-on-year growth of approximately 10%. The clientele base too showed an expansion to a healthy growth of up to

2.90 lakh customers. The housing loan portfolio continued to constitute the dominant share of the Companys AUM, reflecting the Companys long-standing strategic focus on retail housing finance. During FY26, the Company also continued to strengthen its presence in the self-employed non-professional (SENP) segment. A comprehensive underwriting system, specially designed credit evaluation process and enhanced monitoring mechanisms were instrumental in assuring quality of portfolio. The Company could also maintain the balance between growth and risk management while gradually diversifying its product mix through mortgage-backed lending and Approved Project Financing (APF) opportunities.

The Company continues tomaintainits portfoliocomposition

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GROWTH IN PROFIT (in Crs)

with a strong focus on salaried and professional borrowers, who constitute a significant portion of the customer base. This customer segment typically demonstrates stable

FY19

FY20

FY21

FY22

FY23

FY24 FY25

FY26

income profiles, predictable repayment behaviour and lower credit risk, thereby contributing to the overall quality and resilience of the loan portfolio. The Companys long-established expertise in serving these customer categories has enabled it to achieve consistent growth while maintaining strong asset quality and collection efficiency across business cycles.

The Company continued to its endeavour to enhance its pan-India presence through an expansion strategy focused on reducing geographic concentration. The expansion strategy took care of the risks involved and also emphasised on tapping emerging housing demand across urban, semi-urban and Tier II and Tier III markets. Technology-led process transformation too played a significant role in supporting this growth. Improved digital workflows across loan origination, loan servicing, treasury operations, document management and deposit processes improved operational efficiency. These initiatives are expected to further strengthen customer experience, improve productivity and support sustainable growth in the Companys AUM over the long-term.

Comparative Analysis of the Companys Performance

The Company delivered another year of strong financial and operational performance during FY 2025–26, supported by healthy business growth, stable margins, disciplined risk management and continued operational efficiency. The significant expansion in operational scale, driven by robust disbursements of 10,531 crore as against 8,568 crore in FY25 and growth in the customer base to 2.90 lakh from 2.77 lakh, contributed to the total loan book increasing by over 10% to 42,209 crore during the year. This strong business momentum translated into improved profitability, with Profit After Tax (PAT) crossing the 1,000 crore milestone to reach 1,086 crore, while Net Interest Margin (NIM) improved from 3.64% to 3.93%. The cost-to-income ratio stood at 18.84%, reflecting continued investments in technology, business expansion and operational capabilities aimed at supporting long-term growth. Importantly, the Company maintained its focus on asset quality while scaling its operations, with Gross NPA improving to 0.85% from 0.87% and Net NPA improving

to 0.37% from 0.46%, underscoring the effectiveness of its prudent underwriting standards, disciplined credit appraisal framework and robust recovery mechanisms. The companys centralised monitoring system along with early warning mechanisms and existence of a disciplined follow-up process contributed to this overall betterment of its asset quality.

The Companys financial performance during FY2025–26 remained largely aligned with its operational performance. Growth in disbursements, expansion of the loan portfolio, improvement in customer acquisition and sustained collection efficiency contributed to higher revenue, improved net interest income and enhanced profitability during the year. The Companys ability to maintain strong asset quality while expanding its business operations further supported its earnings growth and overall financial resilience.

Particulars	FY2026	FY2025
42,209	38,217
2.90 Lakh Customers	2.77 Lakh Customers
10,531	8,568
1,085.75	857.17
0.85%	0.87%
0.37%	0.46%
3.93%	3.64%
18.84%	17.12%

The Companys profitability metrics also remained strong during the year. Profit After Tax (PAT) crossed the significant milestone of 1,000 crore and stood at 1,086 crore during FY26 as against 857 crore during FY25. Revenue increased to 4,218 crore from 3,880 crore, while Net Interest Income (NII) improved to 1,610 crore from

1,353 crore during the previous year. Return on Assets (ROA) and Return on Equity (ROE) also improved to 2.58% and 18.16%, respectively, reflecting the Companys strong earnings profile and operational efficiency.

The Company maintained a healthy Capital Adequacy Ratio (CRAR) of 23.15%, significantly above the regulatory requirement, thereby strengthening its long-term growth capacity and financial resilience.

The Company continued its efforts to diversify its borrowing mix during the year. Borrowings from banks increased during the year, in line with business expansion, while the Company also continued to optimise its borrowing structure through a balanced mix of bank borrowings, NHB refinance, NCDs and Commercial Papers. Effective treasury management, borrowing cost optimisation and disciplined liquidity management continued to support the Companys overall profitability and balance sheet strength.

Operationally, the Company continued to focus on technology transformation, digital process automation and governance strengthening. Multiple initiatives across loan origination, loan management, treasury automation, HR systems and customer engagement platforms supported improved productivity, process transparency and customer experience.

Optimal Asset Quality

Growth Prospects

The Companys growth prospects remain highly positive as it is well positioned to capitalise on the growing opportunities arising from increasing formalisation of credit, rising housing demand and expanding financial inclusion across the country. Supported by a diversified funding profile, strong liquidity position and strong capital management practices, the company continues to maintain financial flexibility while supporting sustained business growth. Its disciplined approach to credit appraisal, underwriting and risk management has enabled it to preserve strong asset quality and capital adequacy.

The Board

The company also continues to benefit from the guidance of an experienced and professionally diverse Board comprising eminent leaders and industry experts from the banking, finance and regulatory domains. The Board has been playing a crucial role in shaping the companys strategic direction as well as strengthening the governance standards, risk oversight and long-term business sustainability. The expertise of the board and its members altogether have been instrumental in ensuring alignment with evolving regulatory expectations and stakeholder interests. Supported by various Board-level committees and an experienced senior management team, the companys governance framework continues to promote operational discipline, transparency and a decision-making process that is fully competent and effective across all business functions.

Governance

The Company maintained high standards of corporate governance during FY26 through enhanced stakeholder disclosures, improved reporting transparency, investor communication initiatives, and robust Board and committee oversight. Its governance framework continues

to emphasise accountability, transparency, regulatory compliance, and ethical business conduct. These practices reinforce stakeholder confidence and support sustainable long-term growth.

Core Competencies

The Companys core competencies continue to stem from its strong underwriting framework, disciplined risk management practices, technology-led operational model and customer-centric business approach. Its deep understanding of the affordable and mid-income housing finance segment, combined with an updated appraisal mechanism and strong collection efficiency, has enabled the Company to maintain profitability as well as a stable and healthy asset quality across business cycles. Companys continued investments in technology transformation, workflow automation, digital customer engagement and process optimisation are further strengthening its efficiency, scalability and service delivery capabilities.

Borrowing Strategy

The Company continues to maintain a well-diversified and balanced borrowing profile comprising bank borrowings, NHB refinance, Non-Convertible Debentures (NCDs), Commercial Papers and deposits. During FY26, the Company focused on optimising its borrowing mix and funding costs through a carefully planned treasury management, active liability monitoring and diversified sourcing strategies. The Companys strong liquidity position, healthy asset-liability management framework and comfortable capital adequacy levels provided the company with adequate financial flexibility and also the overall financial stability it needed.

Strong Asset Quality Management

The Company continued to maintain healthy asset quality during FY26, supported by its strong underwriting standards, disciplined credit appraisal systems, and a proper monitoring mechanism. Its conservative risk management framework, complemented by technology-enabled surveillance, centralised monitoring, structured credit evaluation processes, and effective recovery systems played a key role in preserving portfolio quality. The Company follows a comprehensive customer onboarding framework that assesses creditworthiness through multiple parameters which include repayment

capacity, income stability, professional background, and overall risk profile amongst others. A significant proportion of the loan portfolio continues to comprise first-time homebuyers from the salaried segment, which has historically demonstrated stable repayment behaviour. Lending to self-employed customers is undertaken through a fully balanced approach focused on strong credit quality. The entire approach is aimed at supporting sustainable growth, controlled credit risk, and long-term financial stability.

Opportunities

Government Initiatives

Government initiatives especially those focused on infrastructure development, affordable housing, urbanisation, financial inclusion and economic formalisation continue to provide structural support to the housing finance sector. Government initiatives such as Pradhan Mantri Awas Yojana Urban 2.0 (PMAY U-2.0), the Smart Cities Mission, and various state-level incentives support affordable housing demand and encourage first-time home ownership. The GOIs policy emphasis on affordable housing and ease of doing business along with the digital governance reforms further strengthened the operating environment for formal lenders and continue to support sector growth over the long term.

Digitalisation and Fintech Partnerships

The housing finance sector in the recent years has witnessed rapid digital transformation. This whole technology-driven revolution has created significant opportunities for institutions with strong technology adoption and adaptation capabilities. Increasing use of digital onboarding, alternate data-based credit assessment, automated underwriting, AI-driven customer engagement and integrated payment ecosystems is improving operational efficiency, reducing turnaround time and enhancing customer experience across the lending lifecycle. The Companys ongoing investments in Loan Origination Systems (LOS), Loan Management Systems (LMS), treasury automation, digital workflows and customer engagement platforms position it well to leverage the growing digital ecosystem while strengthening scalability, governance and long-term operational efficiency.

Affordable Housing Segment

The affordable housing segment continues to present a major long-term growth opportunity. Recent Union Budget

measures, including enhanced income tax relief and continued policy support for first-time homebuyers, are expected to improve affordability and strengthen housing demand by increasing disposable incomes and supporting borrowing capacity. With its established presence in the affordable and middle-income housing segment, the company has been able to fully penetrate and also continues to expand the addressable market in this sector. Our overall success not only bears testimony to our market expansion but also ensures our societal contribution towards broader financial inclusion and housing development objectives.

Challenges

The housing finance industry continues to operate in a competitive environment and like any other industry type in the country continues to face evolving challenges. Some of the challenges include:

Pricing Competition

Banks and larger financial institutions continue to intensify pricing competition, exerting pressure on lending spreads and margins. Consequentially, this aggressive environment has driven an escalation in our run-down ratio-from 15% (5,350 crores) in FY25 to 17% (6,541 crores) in FY26.

Funding Cost Sensitivity

Borrowing costs remain sensitive to monetary policy movements, liquidity conditions and capital market dynamics.

Movement in Borrowing Costs during FY26

Q1FY26 7.47%

Q2FY26 7.17%

Q3FY26 7.14%

Q4FY26 7.07%

Regulatory Environment

The sector continues to witness evolving regulatory and compliance expectations, requiring stronger governance, reporting and risk management capabilities.

Asset Quality Monitoring

Maintaining asset quality amid portfolio growth, economic uncertainties and borrower diversification remains a critical priority.

Risk of Default

Even after all the resilience that both the company as well as our overall economy has shown in the current FY, the housing finance segment remains exposed to various risks that are typical to this sector. These risks arise primarily due to factors such as economic slowdown, inflationary pressures, employment volatility and changes in interest rate scenarios. Any prolonged stress in household cash flows or adverse macroeconomic conditions could impact collection efficiency and asset quality across the sector. The Company continues to mitigate these risks through a well-planned system of monitoring credit assessment and an effective underwriting process.

Competitive Rates

The housing finance industry continues to face pressure on lending spreads due to intense competition and changing interest rate cycles. Banks and large financial institutions with access to relatively lower-cost funds may offer highly competitive lending rates, impacting margins for housing finance companies. Sustained volatility in borrowing costs and repricing challenges may also exert pressure on profitability and Net Interest Margins (NIMs). The Company continues to focus on optimising its borrowing mix, operational efficiency and portfolio quality to maintain balanced growth and profitability.

Intense Competition

The Indian housing finance sector continues to witness intense competition from banks, housing finance companies, fintech lenders and digital lending platforms. Increasing digital adoption, aggressive pricing strategies, faster loan processing and customised product offerings are intensifying competition across customer segments, particularly in urban and semi-urban markets. This competitive environment ends up impacting overall customer acquisition costs, market share expansion and pricing flexibility. However, the Companys well-established market presence, resolute customer-centric approach along with strong credit practices and technology-driven initiatives continue to support its competitive positioning within the sector.

Insightful Overview of the Business

FY 2025–26 was another year of steady progress for the company. The company continued to build upon its strong business fundamentals during this period leveraging its established market position, customer-centric approach and a strong and efficient risk management framework. The year witnessed continued business across geographies, culminating in a record quarterly disbursement of 3,246 crore and further strengthening its position in the housing finance sector. Continued investments in technology, process enhancement and distribution capabilities supported business growth while reinforcing operational resilience.

Lending Mix

The Company continues to maintain a well-diversified lending portfolio with a balanced focus on housing and non-housing finance segments. During FY26, the housing loan segment continued to constitute the major share of the overall loan book indicating the companys sustained focus on affordable and middle-income housing finance. At the same time, the Company continued to strengthen its presence in mortgage loans as well. Approved Project Financing (APF) and the self-employed non-professional (SENP) segment were focused too in order to improve portfolio diversification and enhance risk-adjustment with respect to returns. The Companys well devised approach towards segment diversification, supported by its underwriting standards and focused credit monitoring, helped sustain its continued growth while also maintaining healthy asset quality and profitability metrics.

PRODUCT PORTFOLIO

The Company continued to strengthen its presence in non-housing loan products, particularly mortgage-backed lending solutions such as Loan Against Property (LAP), Flexi-LAP, Site Loans and Loans against Rent Receivables. These products contributed to portfolio diversification and supported yield optimisation while maintaining prudent risk parameters. In addition, specialised offerings such as Education Loans, Pensioner Loans, Insurance-linked Loans and Rooftop Solar Loans enabled the Company to

address evolving customer requirements and expand its reach across multiple borrower segments. As the Company operates primarily in the housing finance business, it constitutes a single reportable segment. Nevertheless, the diversified product portfolio enables the Company to balance growth opportunities across customer categories while maintaining asset quality, portfolio stability and sustainable profitability.

The product portfolio of the Company is broadly categorized as under:

Housing-linked products, including Housing CRE accounted for approximately 84% of the total loan book. This portfolio mix reflects the Companys continued focus on preserving its core housing finance identity, while selectively diversifying into complementary higher-yield retail products. The Company continues to adopt a calibrated diversification strategy, balancing portfolio growth with asset quality and margin considerations.

In FY26, the Company successfully diversified its borrower profile, showcasing an intentional strategic shift toward its targeted growth segments. It experienced a noticeable growth in the Self-employed segments compared to the previous year. While the Salaried - Private sector remained the largest contributor, its share decreased from 56% to 53%. Steady growth was also observed in the Salaried -

Govt. category, which edged up to 14%. Meanwhile, smaller segments like Salaried - PSU/Banks and Professionals, both witnessed minor compressions, each halving their footprint to finish the year at 0.5% each. Overall, the performance highlights an intentional or market-driven pivot toward a more diversified portfolio with increased traction in the SENP base.

Core Housing Loans continued to dominate the portfolio, though its share moderated from 76% to 72%. Housing CRE (Commercial Real Estate) grew slightly to 12%, and LAP and Mort (Loan Against Property & Mortgage) saw the largest relative growth, increasing from 6% to 8%. Concurrently, Top-up Loans held entirely firm, maintaining a consistent 2% share of the portfolio since the previous financial year.

Funding Mix

The Company continues to maintain a diversified and well-balanced borrowing profile to ensure funding stability, liquidity strength and cost optimisation. During FY26, bank borrowings remained the largest source of funding at 24,342 crore, followed by refinance from NHB at

6,011 crore and Non-Convertible Debentures (NCDs) at

6,700 crore, while Commercial Papers (CPs) and deposits continued to supplement the overall funding structure. Concurrently, there was a reduction in the share of short-term borrowings within the overall mix. The Company also continued to optimise its interest rate-linked borrowing mix through a combination of repo-linked, special rate and treasury bill-linked borrowings in order to manage cost of funds and interest rate sensitivity efficiently. No MCLR-linked bank borrowings were undertaken. This diversified borrowing strategy continues to support liquidity management, lending growth and overall balance sheet stability.

Total Borrowings: 35,289 Crore

Total Borrowings: 38,258 Crore Deposit Schemes

Licensed by the National Housing Bank (NHB) and regulated by the Reserve Bank of India (RBI), the Company continues to offer a range of deposit schemes designed to cater to varying customer investment preferences and financial requirements. The deposit portfolio includes Fixed Deposits, Cumulative Deposits and other Customised Deposit products, providing customers with flexible investment options across different tenure profiles. The Company also continues to offer additional interest benefits to senior citizens in line with applicable policies, thereby strengthening customer participation and depositor confidence. During FY26, the Company further strengthened its deposit operations through technology-led initiatives and end-to-end automation. The Company continues to maintain strong liquidity levels supported by a diversified funding mix comprising bank borrowings, NHB Refinance, Non-Convertible Debentures (NCDs), Commercial Papers and Deposits. Continuous monitoring of Borrowing Costs, Liquidity Buffers and Net Interest Margin (NIM) enables the Company to maintain financial stability, optimise funding efficiency and support sustainable business growth.

Risks and Concerns

Risk management remains a critical issue in the housing finance sector and therefore mitigation of it is integral to the Companys operating framework. The Company follows

a strict and comprehensive risk management architecture, which amongst others primarily takes account the following:

Credit Risk

The Company manages Credit Risk through a comprehensive process of customer due diligence, income assessment, property evaluation and legal and technical verification processes along with a proper underwriting system. Credit appraisal and approval mechanisms are further strengthened through centralised monitoring systems, early warning indicators and disciplined portfolio review practices. The Company also continues to maintain a diversified lending approach with a strong focus on portfolio quality, collection efficiency and recovery management to minimise delinquency risks.

Market Risk and Interest Rate Risk

The Company actively manages Market and Interest Rate Risks through a well-structured Asset Liability Management (ALM) framework and continuous monitoring of interest rate sensitivity across assets and liabilities. A diversified borrowing profile, balanced funding mix and borrowing repricing strategies help the company optimise funding costs and maintain stable spreads and Net Interest Margins (NIMs). An efficient liquidity monitoring and treasury management system helps strengthen the companys ability to manage volatile market conditions and interest rate movements.

Mitigation

Risk mitigation remains an integral component of the Companys governance, risk management and operational framework. The Company follows a comprehensive approach towards managing credit, market, interest rate, liquidity, operational and compliance risks through well-defined policies, robust internal controls and technology-enabled monitoring systems. Its risk management architecture is supported by prudent underwriting standards, structured credit appraisal processes, centralised monitoring mechanisms, maker-checker controls, workflow automation, periodic audits and continuous compliance oversight.

To strengthen credit risk management, the Company undertakes a detailed assessment of borrower profiles, repayment capacity, income stability, professional background and overall risk characteristics before sanctioning loans. The credit evaluation process is supported by information and verification systems from agencies such as CIBIL, Experian, CERSAI, PERFIOS and other established platforms. Employment, residence and

business verification, along with independent legal and technical due diligence by empanelled professionals, further strengthen the underwriting process. The Company has also enhanced its digital verification capabilities through platforms such as Perfios for automated validation of PAN, Aadhaar, Income Tax Returns and other customer credentials, thereby improving efficiency, accuracy and fraud prevention.

As part of its ongoing focus on strengthening operational controls, the Company has partnered with Maatrum for advanced document verification and risk control processes. The Valocity platform is utilised for managing valuation-related activities through digital allocation, monitoring and submission of valuation reports, enhancing transparency, governance and operational efficiency across the credit lifecycle. Technology-driven monitoring tools, automated workflows and periodic policy reviews continue to support proactive risk identification and timely corrective action.

The Company also follows a prudent and diversified borrowing strategy to effectively mitigate market, liquidity and interest rate risks. Its funding profile comprises an appropriate mix of bank borrowings, NHB Refinance, Non-Convertible Debentures (NCDs), Commercial Papers (CPs) and Deposits across varying maturities and interest rate structures. Continuous monitoring of liquidity positions, interest rate movements and asset-liability maturity profiles through established treasury and ALM practices helps ensure adequate financial flexibility, funding stability and resilience against adverse market conditions.

This integrated risk mitigation framework continues to support sustainable growth, asset quality preservation, regulatory compliance and long-term value creation for stakeholders.

ALM position (as on March 31, 2026)

TABLE 1: % OF NET CUMULATIVE MISMATCH OVER OUTFLOW VIS-?-VIS TOLERANCE LIMIT (SLS)

Total Cumulative Outflow	Total Cumulative Inflow	Net Cumulative Mismatch	Net Cumulative Mismatch %	Tolerance Level %
( in Crores)	( in Crores)	( in Crores)	(% of D over B)

 

A		B		C		D		E		F
1 to 7 Days		624.70		1935.82		1311.12		209.88			-9.00
8 to 14 Days		704.20		2130.15		1425.96		202.49			-9.00
>15 Days to 1M		1330.88		2787.71		1456.82		109.46			-19.00
>1 – 2 Months		5173.69		7400.10		2226.41		43.03			-15.00
>2 – 3 Months		8480.24		11273.53		2793.29		32.94			-15.00
>3 – 6 Months		12159.97		15851.90		3691.93		30.36			-15.00
>6- 12 Months		15949.79		21275.99		5326.19		33.39			-15.00
>1 – 3 Years		32402.36		41532.73		9130.37		28.18			-40.00
>3 – 5 Years		41213.39		59266.20		18052.81		43.80			-20.00
>5 Years		51520.66		78652.21		27131.55		52.66			-20.00

GRAPH 1: % OF NET CUMULATIVE MISMATCH OVER OUTFLOW VIS-?-VIS TOLERANCE LIMIT (SLS)

Interest Rate Sensitivity (IRS)

TABLE 2: % OF NET CUMULATIVE MISMATCH OVER TOTAL ASSETS VIS-?-VIS TOLERANCE LIMIT (IRS)

Cumulative Rate Sensitive Liabilities	Cumulative Rate Sensitive Assets	Net Cumulative Mismatch	Net Cumulative Mismatch %	Tolerance Level %
( in Crores)	( in Crores)	( in Crores)	(% of D over Total Assets)

 

A	B	C	D	E	F
1 to 7 Days	1195.03	22226.12	21031.09	47.39	-30.00
8 to 14 Days	1457.36	22226.12	20768.76	46.80	-30.00
>15 Days to 1M	2324.37	22226.19	19901.82	44.84	-30.00
>1 – 2 Months	7016.93	29129.86	22112.93	49.83	-30.00
>2 – 3 Months	23871.34	36594.45	12723.11	28.67	-40.00
>3 – 6 Months	29002.39	38975.59	9973.20	22.47	-30.00
>6- 12 Months	30669.76	41559.40	10889.64	24.54	-30.00
>1 – 3 Years	34849.59	41876.11	7026.52	15.83	-30.00
>3 – 5 Years	37119.32	42090.26	4970.94	11.20	-30.00
>5 Years	37922.10	44098.44	6176.34	13.92	-30.00
Non-Sensitive	44381.06	44381.06	0.00	0.00	-30.00

GRAPH 2: % OF NET CUMULATIVE MISMATCH OVER OUTFLOW VIS-?-VIS TOLERANCE LIMIT (IRS)

Segment-wise Breakup of Housing Loan Book by Interest Rate Structure

The Company continues to maintain a balanced interest rate structure across its housing loan portfolio in order to effectively manage interest rate sensitivity and portfolio stability. The loan book primarily comprises floating rate loans linked to benchmark rates, enabling timely transmission of market interest rate movements while maintaining pricing flexibility.

Funding Interest Rate Structure wise Breakup of Borrowing

( in Crores)

Particulars FY25
NCD	8,268	6,700
CP	2,581	989
Deposit	188	216
NHB	5,954	6,011
Bank Borrowing:
Repo Linked	11,213	13,446
Special Rate	550	8,035
T bill linked	6,535 35,289	2,861
Total Borrowing		38,258

Liquidity Risk

The Company follows a liquidity management framework which is regularly supported by diversified funding sources, adequate liquidity buffers and continuous Asset Liability Management (ALM) monitoring which in turn strengthens companys ability to meet its short-term and long-term financial obligations in the best possible manner. Companys liquidity position remained comfortable throughout FY26, with ALM indicators remaining well within internal and regulatory tolerance limits.

Mitigation

The Company continues to strengthen its risk mitigation framework through robust internal controls, process automation, regular monitoring and disciplined governance practices. Its liquidity risk management framework is supported by comprehensive policies, periodic scenario analysis and stress testing mechanisms that enable timely identification of emerging risks and assessment of potential liquidity pressures under varying market conditions. The Company maintains adequate liquidity buffers through investments held towards Liquidity Coverage Ratio (LCR) and Statutory Liquidity Ratio (SLR) requirements, supplemented by committed and undrawn bank lines to provide additional financial flexibility. A diversified funding strategy across multiple borrowing sources, maturities and interest rate structures further supports effective asset-liability management, liquidity resilience and balance sheet stability. Technology-driven systems, periodic reviews and proactive compliance oversight continue to strengthen operational resilience and support sustainable business growth.

Asset and Liability Mix (Fixed vs. Floating)

( in Crores)

Particulars	Fixed	Floating	Total
Assets (A)	2,378.30	41,398.01	43,776.31
Liabilities (L)	12,944.92	24,753.27	37,698.19

Quarterly LCR (On a Daily Computational Basis)			( in Crore)
LCR Disclosure for the Quarter ended March 31st, 2026
		Total Unweighted Value (Daily Average) $	Total Weighted Value (Daily Average) #
High-Quality Liquid Assets
1 Investment for LCR		2056.62	2056.62
2 Investment in G-SEC (20% Haircut)		72.50	58.00
3 Total High-Quality Liquid Assets (HQLA) Government Securities		2129.12	2114.62
Cash Outflows
4	Deposits (for Deposit-Taking Companies)	6.52	7.50
5	Unsecured Wholesale Funding	517.0	594.55
6	Secured Wholesale Funding	1853.93	2132.01
7	Additional Requirements, of which	-	-
(i)	Outflows Related to Derivative Exposures and Other Collateral Requirements	-	-
(ii)	Outflows Related to Loss of Funding on Debt Products	-	-
iii)	Credit and Liquidity Facilities	-	-
8	Other Contractual Funding Obligations	833.10	958.07
9	Other Contingent Funding Obligations	-	-
10	TOTAL CASH OUTFLOWS	3210.55	3692.13
Cash Inflows

 

11 Secured Lending	-	-
12 Inflows from Fully Performing Exposures	843.85	632.89
13 Other Cash Inflows	5242.88	3932.16
14 TOTAL CASH INFLOWS	6086.73	3784.34
		Total adjusted value
15 TOTAL HQLA	2129.12	2114.62
16 TOTAL NET CASH OUTFLOWS		924.42
17 LIQUIDITY COVERAGE RATIO (%)		242.28

Points to Note:

$Unweighted values is calculated as outstanding balances maturing or callable within 30 days (for inflows and outflows). #Weighted values is calculated after the application of respective haircuts (for HQLA) and stress factors on inflow and outflow.

Asset Liability Management

The Asset Liability Committee (ALCO), comprising senior executives from the Registered Office, continuously monitors asset-liability mismatches and overall liquidity positioning of the Company. The Committee undertakes detailed cash flow analysis across various maturity buckets by assessing expected inflows against scheduled outflows to identify and manage potential mismatches effectively. ALCO also conducts periodic scenario and sensitivity analysis to evaluate the impact of various market and liquidity risk factors on the Companys financial position.

Further, all incremental borrowing proposals are reviewed and deliberated upon at ALCO meetings in accordance with the approved Borrowing Policy before being placed for necessary approvals. The Companys financial position, risk profile, and liquidity management framework are also periodically reviewed by the Risk Management Committee, Audit Committee and the Board of Directors to ensure effective oversight and strong governance practices.

Internal Audit

The Company has an independent internal audit

framework to evaluate operational effectiveness,

compliance adherence and internal control adequacy across the organisation. For the Company, compliance is not merely a regulatory obligation but a critical enabler of sound governance, operational excellence and long-term sustainability. The internal audit function also evaluates the adequacy and reliability of financial reporting systems and monitors compliance with applicable laws, regulations, internal policies and operational guidelines.

Internal audit is conducted through a Risk-Based Internal Audit (RBIA) approach. The audit framework covers key areas such as branch operations, credit processes, treasury operations, compliance, information technology systems, financial controls and operational processes. The RBIA framework has been further strengthened to enhance its focus on branch-level performance assessment, policy compliance, process adherence and identification of operational vulnerabilities, while also supporting continuous improvement in service quality and customer experience.

Audit observations and recommendations arising from RBIA inspections, NHB and RBI audits, sponsor bank reviews, internal and external branch audits, IT application audits and other control reviews are periodically reviewed by management and placed before the Audit Committee of the Board for oversight and guidance. The Audit Committee and relevant Board-level committees also review the effectiveness of internal controls, information technology infrastructure, cybersecurity frameworks and governance processes. The Company continues to focus on timely closure of audit observations and strengthening of control processes across the organisation.

The internal audit function provides independent assurance on:

Control effectiveness;

Governance processes;

Compliance quality; and

Risk mitigation.

Through this structured and independent review mechanism, the Company continues to strengthen governance standards, risk management practices, operational efficiency and overall organisational resilience.

Asset Quality

Asset quality remains one of the most critical determinants of the financial strength, stability, and long-term growth of any lending institution. A healthy asset portfolio supports sustainable profitability, strengthens capital adequacy,

and enhances the Companys overall resilience to evolving market conditions.

At Can Fin Homes Ltd., the Management continues to place strong emphasis on maintaining high asset quality standards through disciplined credit monitoring and proactive portfolio management practices. The loan portfolio is periodically reviewed with focused attention on stressed and overdue accounts to assess underlying factors contributing to delinquencies, including regional and economic conditions that may impact borrower repayment capacity.

The Company continuously evaluates the effectiveness of its appraisal standards, credit policies, underwriting practices, management information systems (MIS) and documentation processes to ensure timely identification and resolution of potential stress accounts. These measures support early risk detection and facilitate prompt corrective action across all levels of operations. Companys structured recovery mechanisms and consistent follow-up processes at both branch and centralised levels have contributed to effective collection efficiency and containment of Non-Performing Assets (NPAs). Recovery efforts are further supported through legal remedies available under the SARFAESI Act wherever necessary. A significant portion of collections continues to be routed through automated payment mechanisms such as NACH and salary deductions, thereby strengthening repayment discipline and reducing collection-related risks.

Pursuant to the implementation of IND AS 109, Non-Banking Financial Companies (NBFCs) are required to adopt the Expected Credit Loss (ECL) framework for recognition and provisioning of impairment on financial assets. The transition from the earlier incurred loss approach to a forward-looking ECL methodology aligns provisioning practices more closely with globally accepted accounting standards, including IFRS 9.

For Housing Finance Companies (HFCs), where lending constitutes the core business activity, the ECL framework has a significant impact on provisioning requirements, profitability, capital management, and regulatory compliance. Accordingly, provisions on advances and financial instruments are recognised in the books of account based on the Expected Credit Loss model, taking into account historical performance, current asset quality trends, and forward-looking macroeconomic factors.

As of the reporting date, Companys total loan book stands at 42,209 crores, against which it is carrying a total provision of 500 crores. This includes:

391 crores towards Expected Credit Loss (ECL) as per IND AS 109

59 crores as management overlay, towards potential macroeconomic uncertainties, and

50 crores under provision for restructured accounts, in line with regulatory guidelines.

Provision for Loans

The company continues to follow a conservative but effective provisioning policy in line with applicable regulatory guidelines and internal risk assessment frameworks. Adequate provisions are maintained against loan assets based on portfolio quality, delinquency trends and expected credit risk assessments to strengthen financial resilience and balance sheet stability.

Financial Performance

( in Crores)

Particulars FY26
Revenue	4,218.24	3,879.62
NII	1,610.17	1,353.27
ROA (Annualized) %	2.58%	2.24%
ROE (Annualized) %	18.16%	16.92%
EBITDA	3,883.48	3,578.50
EBIT	3,866.79	3,565.63
PAT	1,085.75	857.17
EPS ( In )	81.54	64.37
Debt Equity Ratio	6.40	6.96

The Company delivered a strong financial and operational performance during FY 2025–26, supported by healthy growth in its loan portfolio, robust disbursement momentum, stable asset quality and improved profitability metrics. Revenue increased to 4,218.24 crore during FY26 from 3,879.62 crore in FY25, while Net Interest Income (NII) grew by 19.0% to 1,610.17 crore from 1,353.27 crore, reflecting the benefits of portfolio expansion, improved spreads and efficient balance sheet management.

Profitability remained strong during the year. Profit After Tax (PAT) crossed the significant milestone of 1,000 crore and increased to 1,085.75 crore from 857.17 crore in FY25, registering a growth of 26.75%. The growth in profitability was primarily driven by portfolio expansion supported by improved spreads and yields, which contributed approximately 21% of the growth, along with the impact of a one-time tax benefit contributing approximately 5%. EBITDA increased to 3,883.48 crore from 3,578.50 crore, while EBIT improved to 3,866.79 crore from 3,565.63 crore during the year. Earnings Per Share (EPS) also increased significantly to 81.54 from 64.37 in the previous year.

The Company recorded improvement across key return and profitability indicators. Return on Assets (ROA) increased to 2.58% from 2.24%, while Return on Equity (ROE) improved to 18.16% from 16.92%. Net Interest Margin (NIM) expanded to 3.93% from 3.64%, and Interest Spread improved to 2.86% from 2.55%, reflecting efficient management of borrowing costs and asset yields. Operating Profit Margin and Net Profit Margin improved to 31.84% and 25.74%, respectively, demonstrating the Companys continued focus on operational efficiency and profitability enhancement.

The Companys capital position continued to remain strong, with a Capital Adequacy Ratio (CRAR) of 23.15%, significantly above the regulatory requirement. The Debt-Equity Ratio improved to 6.40 times from 6.96 times in FY25, demonstrating prudent balance sheet management and financial resilience. Overall, the Company maintained a healthy balance between growth, profitability, capital strength and asset quality during FY26.

Financial Ratios and Explanations

Particulars FY25
Debt Equity Ratio	6.40	6.96
Operating Profit Margin (%)	25.74%	22.09%
Return on Equity (%)	18.16%	16.92%

* Debtors Turnover Ratio and Inventory Turnover Ratio are not applicable to the Company considering the nature of its business as a Housing Finance Company. Further, certain conventional liquidity and turnover ratios have limited applicability in the context of NBFC/HFC operations.

None of the above key financial ratios witnessed a variation of 25% or more during FY26 as compared to FY25. The improvement in Net Profit Margin and Return on Equity was primarily attributable to growth in the loan portfolio, higher Net Interest Income, improved spreads and yields, operational efficiencies and enhanced profitability during the year. The improvement in the Debt-Equity Ratio reflects continued strengthening of the Companys capital structure and prudent balance sheet management

Human Capital

Human capital remains a key enabler of the Companys long-term growth strategy. The Company continues to invest in employee capability building, leadership development and organisational effectiveness. Key focus areas during FY26 included:

Employee learning and development,

Capability enhancement,

Succession planning,

Productivity improvement, and

Effective performance management.

The Company conducted extensive training programmes during the year which covers things such as compliance, risk management, credit, recovery, governance mechanism, etc., amongst others. Approximately 21,000+ training hours were delivered during the year across employees.

The Company has consistently demonstrated a strong commitment towards its human capital, reflected in attrition rate of 15.02% during FY 2025-26. The Company continues to focus on building a motivated, engaged, and performance-driven workforce aligned with its long-term strategic objectives and organisational values.

Recognising the evolving dynamics of the workforce environment, the Company has further strengthened its employee welfare and engagement initiatives aimed at enhancing job satisfaction, talent retention, employee well-being, and overall productivity. These initiatives continue to support the development of a stable and committed workforce capable of driving sustainable business growth.

The Company continues to strengthen gender diversity across its workforce as part of its commitment to building an inclusive and equitable work environment. During the year, recruitment of female employees increased compared to the previous year, reflecting the Companys continued focus on providing equal opportunities and promoting workforce diversity. Industrial relations across the organisation remained cordial and harmonious throughout the year.

As of 31st March, 2026 the Company had a total strength of 1356 employees.

IT and Security

The Company continues to accord high priority to the security, integrity, and confidentiality of its data and information systems to ensure uninterrupted business operations and effective protection against evolving cyber threats. Robust safeguards are implemented to protect critical information assets and IT infrastructure across all operational levels. The Companys IT and cybersecurity framework is governed through comprehensive policies, including the IT & Information Security Policy, Cyber Security Policy, and Cyber Crisis Management Plan.

The Company also maintains a comprehensive Business Continuity Plan (BCP) designed to ensure continuity of critical business functions during unforeseen events or emergency situations. Periodic vulnerability assessments, penetration testing, and security reviews are conducted to strengthen internal controls, enhance cyber resilience, and mitigate technology-related risks.

The Companys Integrated Business Suite (IBS), which serves as its core banking platform, seamlessly integrates branch operations with the Registered Office and supports efficient business processing and monitoring. In line with its digital transformation initiatives, the Company is in the process

of implementing a new end-to-end Core Banking Solution (CBS) with advanced technological capabilities aimed at enhancing operational efficiency, scalability, automation, and customer service delivery. Demonstrating on this strong momentum, a suite of functional applications and technical solutions are already deployed, strengthening our "phygital" ecosystem by blending high-tech automation with accessible customer service.

The successful implementation of the IBM-led Core Banking Solution is expected to further strengthen the Companys technology infrastructure and operational capabilities, providing a robust and scalable platform to support future business growth and evolving digital requirements.

Segment-wise Reporting

The company primarily operates in the housing finance segment and continues to focus on retail lending activities comprising housing loans and other mortgage-backed loan products. The lending portfolio is diversified across demographic sections such as salaried, self-employed and affordable housing customer segments, etc. thereby enabling balanced portfolio growth and risk distribution. Continuous monitoring of segment-wise performance supports better portfolio management and overall growth.

Future Prospects

The long-term outlook for the Indian housing finance sector continues to remain positive, supported by rising urbanisation, increasing income levels, favourable demographics and sustained Government focus on housing and infrastructure development. The company remains well positioned to capitalise on these opportunities through its strong market presence, prudent lending practices, technology-led transformation initiatives and customer-centric business model. Going forward, the company will continue to focus on strengthening operational efficiency, enhancing customer reach, maintaining asset quality, and creating long-term stakeholder value through sustainable growth and disciplined risk management.

Plans for the Next Financial Year

During the next financial year, the company intends to further strengthen its retail franchise, expand its geographical presence, and enhance operational efficiency through ongoing technology-led transformation initiatives. While housing finance will continue to remain the core focus area, the Company also plans to strengthen its presence across mortgage loans, non-housing loans, Approved Project Financing (APF), and the Self-Employed

Non-Professional (SENP) segment through calibrated and comprehensive approach towards its growth strategies and credit practices. Continued focus on portfolio diversification, asset quality, liquidity management, digital customer engagement, and AI-enabled business initiatives is expected to support sustainable growth and long-term value creation in the long run. The Company also remains committed to supporting affordable housing, promoting green and energy-efficient housing solutions, and leveraging opportunities arising from Government housing initiatives to further strengthen its growth trajectory.

Future Outlook and Strategic Priorities

The Company remains focused on sustainable long-term growth. Our strategic priorities include:

Continued business growth;

Digital acceleration;

Operational excellence;

Geographic diversification;

Portfolio optimisation; and

Customer experience enhancement.

The Company will continue to focus on:

Strengthening retail housing finance franchise;

Maintaining asset quality;

Improving productivity; and

Technology-led growth and scalability.

Supported by strong institutional parentage, prudent governance and established market credibility, the Company remains well positioned for long-term growth.

Key Focus Areas

Disbursement Strategy

The Companys disbursement strategy remains aligned with key Government housing initiatives, including PMAY-U

2.0. As of FY26, housing loans (excluding CRE) accounted for 72% of the loan book, with a target to maintain this share above 70% to support portfolio stability and prudent risk management.

Tapping the Self-Employed Non-Professional (SENP) Segment

The Company also aims to increase the SENP segments contribution to 35% of the loan book from 32% as of March 2026.

Direct Sales Approach

To diversify sourcing channels, the Company has set up

a dedicated direct sales team which now contributes approximately 8% of new business, with a target to increase direct sourcing to 20% by FY28.

Expanding pan-India presence

During FY26, the branch network expanded from 234 to

249 branches, enhancing market reach and customer access. The Company continues to strengthen its presence in North and West India as part of its strategy to diversify beyond its established Southern markets.

Marketing Efforts

The Company continues to strengthen its marketing capabilities through focused branding initiatives, customer engagement programmes and digital outreach strategies. These efforts support business visibility, lead generation and customer acquisition across markets.

Dedicated Marketing Staff

A dedicated marketing team of the company led by experienced leadership focuses on expanding direct business generation and strengthening customer relationships. Continuous training initiatives further enhance product knowledge, customer interaction capabilities and operational efficiency to the maximum extent possible.

APF Marketing

The Company continues to strengthen Approved Project Financing (APF) marketing initiatives through focused developer engagement and project-level relationship building. This strategy supports quality lead generation and expansion of the retail lending pipeline.

Branding and Digital Marketing

The Company continues to enhance brand visibility through digital marketing initiatives including social media engagement, SEO strategies and targeted advertising campaigns. Increased digital outreach supports wider customer engagement and improved lead conversion efficiency.

Cautionary Statement

This document contains certain forward-looking statements relating to the anticipated future performance, business prospects, financial position and operational developments of Can Fin Homes Ltd. These statements are based on managements current expectations, assumptions, estimates, and projections regarding future events and business performance and are therefore subject to various risks, uncertainties, and other factors beyond the Companys control.

Actual results, performance, or outcomes may differ materially from those expressed or implied in such forward-looking statements due to changes in economic conditions, regulatory developments, market dynamics, interest rate movements, and other unforeseen factors. Readers are therefore advised to exercise appropriate caution while relying on these statements.

For and on behalf of the Board of Directors

Sd/-

Shri Hardeep Singh Ahluwalia

Place : Bengaluru Chairman

Date : June 08, 2026 (DIN: 09690464)