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Informist, Friday, Jul. 31, 2026

 

--Aadhar Housing: See 20% growth in AUM in medium term 

--CONTEXT: Comments by Aadhar Housing managment in post-earnings analyst call 

--Aadhar Housing: Remain watchful of West Asia situation and monsoon outlook 

--Aadhar Housing: Aim to bring down GNPA to 1.1% by FY27 end 

--Aadhar Housing: Expects disbursement of INR 9 billion in July 

--Aadhar Housing: Expects 17-18% disbursement growth in FY27 

--Aadhar Housing: Expect 20% growth in PAT in FY27 

--Aadhar Housing: Aim RoE of 17% in 2-3 years 

 

By Vaishali Tyagi and Nandini Sinha

NEW DELHI – Aadhar Housing Finance Ltd. expects its assets under management to grow around 20% over the medium term, the housing financier's management said at a post-earnings analyst call on Friday. The non-bank lender's assets under management increased 18% from a year earlier to INR 313.64 billion as of Jun 30. 

 

Management expects profit to grow 20% in 2026-27 (Apr-Mar) and anticipates a similar pace of growth over the next three quarters. "On the operating environment, demand for low-income housing finance continues to remain healthy and structurally supported," the management said. "It continues to be largely end-user-based and first-time home buyer-driven, particularly in the emerging markets, where we have deliberately built a strong franchise, which gives us comfort that this growth is not speculative in nature."

 

The company detailed its June quarter results after market hours on Friday. The company's shares rose 1.2% to INR 496.70 on the National Stock Exchange. 

 

For the June quarter, Aadhar Housing reported a consolidated net profit of INR 2.82 billion, up 19% on year but down 9% on quarter. The company's total revenue from operations rose 17% on year to INR 9.93 billion in the June quarter from INR 8.48 billion a year ago.                             

 

"Overall, Q1 FY27 (Apr-Jun) has been a quarter of steady, disciplined execution," management said. "We remain confident of delivering our medium-term guidance of 20% AUM (growth), sustained productivity, and industry-leading asset quality while staying alert to the environment around us."

 

Management said the company remains watchful of two external risks that have also been flagged by the broader industry –  the geopolitical uncertainty surrounding West Asia and its impact on fuel-dependent sectors such as trade and travel, and the monsoon outlook, given its implications on rural and semi-urban cash flows. "Our exposure to NRI-linked customer segments continues to be minimal, and our underwriting teams are tracking lead indicators closely at the branch level, as they always do, rather than making any broad-based tightening," the management said. 

 

The company management is "fairly confident" of bringing down the gross non-performing assets ratio back to 1.1% by the end of 2026-27 (Apr-Mar). As of Jun. 30, the gross NPA ratio stood at 1.31%, down from 1.34% a year ago. The net NPA ratio was at 0.9% as of Jun. 30, compared with 1% in the year-ago period.

 

Management expects a disbursement growth of 17-18% by the end of FY27. Aadhar Housing Finance expects July disbursements at INR 9 billion, the company said. "We will stand by 17-18% disbursement growth. From an incremental perspective, we are targeting disbursement growth of upward of 20% over the next three quarters," management said. The portfolio continues to remain fully secured and retail in nature, with a balanced mix of home loans at 73% and non-home loans at 27%.

"We continue to maintain a very diversified book with an average ticket size of INR 1.1 million and a loan-to-value ratio of 60%, which remains within our comfort levels. The salaried segment continues to account for 55% of our AUM," the management said. Balance transfer-out during the quarter stood at 5%, one of the lowest in the last 8-10 quarters, and improved by 20 basis points compared with Apr-Jun in 2025. The company's disbursements were at INR 20.36 billion as of Jun. 30, up from INR 19.79 billion a year ago. 

 

The company management aims to achieve a return on equity of around 17% over the next couple of years, it said. "If you look at the portfolio RoE a couple of years down the line, we would be hitting around 17% RoE, which is the plan that we are working on," management said. For the June quarter, the business generated a 4% return on assets and a 14.7% return on equity.   End

 

Edited by Saji George Titus

 

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