Repco Home Finance’s (Repco) 2QFY26 PAT declined 5% YoY to INR1.07b (in line). NII in 2QFY26 grew ~14% YoY to ~INR1.9b (in line). Other income declined ~46% YoY to INR123m (vs. our est. of INR200m). Opex rose ~17% YoY to INR603m (in line). PPOP grew ~3% YoY to INR1.4b (in line). Provision writebacks stood at INR15m, translating into 2QFY26 annualized credit costs of -4bp (PY: -46bp and PQ: -7bp). Repco reported an RoA/RoE of 2.9%/14% in 2QFY26.
OutlookWe believe the company will have to start delivering stronger and sustained loan growth to command higher valuations. We reiterate our Neutral rating with a TP of INR465 (based on 0.7x Sep’27E BVPS).
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