Can Fin Homes Q2 profit up 9.2%, helped by lower tax

Can Fin Homes Limited (CANFINHOME) reported Q2 FY27 net profit of ₹274.61 crore, up 9.2% from ₹251.43 crore a year ago. Pre-tax profit rose only 4.7%, to ₹347.22 crore. Results came on October 9, 2026. Total income from operations was ₹1,131.18 crore, up 7.8%. Net interest income rose 7%. Profit rose 2.5% from ₹267.82 crore in Q1. Gross NPA was 0.90% against 0.87% in Q1. Net NPA was 0.43% against 0.42%. Capital adequacy was 23.34% and debt to equity was 6.09. The stock closed at ₹718.15 on October 9 and rose as much as 5% to ₹751 on Monday. Profit grew 9.2% but pre-tax profit grew 4.7%. The gap is tax. The effective tax rate was about 20.9% this quarter against about 24.2% a year ago, by my calculation from the reported figures. At last year’s rate, profit would have been about ₹263 crore, up 4.7%. So about half the profit growth came from a lower tax rate. I could not find the reason for it. Growth is also slowing. Profit rose about 19.6% in Q1 and 9.2% in Q2, by my calculation. Net interest income grew 7%, below profit growth. The stock reacted to the 9.2%. I anchor on the 4.7%. If the tax rate stays near 21% in Q3, it is a new run rate and the profit base is cleaner than I think. If pre-tax profit growth moves above 9%, I would turn positive. My stance: neutral. Asset quality is clean and capital is strong, but pre-tax growth of 4.7% is the real pace right now. I am watching Q3 FY27 results, likely January 2027, for the tax rate and pre-tax growth. I do not hold Can Fin Homes Limited at the time of writing.