Aadhar Housing Finance (AADHARHFC) Q1 24/25 earnings summary

Executive summary

• AUM reached ₹21,726 crore (₹217,263 Mn), up 21% YoY, with 100% retail secured book and no corporate/developer exposure; loan accounts rose 15% to over 2.74 lakh.

• PAT grew 37% YoY to ₹200 crore (₹2,001 Mn) in Q1 FY25, with ROE at 15.9% and ROA at 4.1%.

• Focused on low-income housing finance, with 81% of AUM in EWS/LIG segments and 57% of portfolio to salaried customers.

• Distribution network expanded to 536 branches across 21 states, including entry into Himachal Pradesh.

• Robust digital infrastructure and tech investments enhance underwriting, collections, and operational efficiency.

Financial highlights

• Revenue from operations for Q1 FY25 was ₹69,678 lakh, up from ₹57,801 lakh in Q1 FY24; total income at ₹7,131.5 Mn, up 20% YoY.

• Gross NPA improved to 1.31% (down 15 bps YoY); collection efficiency above 99%.

• NIM at 8.9%, up 30 bps YoY; spread for the quarter at 6%.

• Cost-to-income ratio improved to 36.7%, down 80 bps YoY.

• Write-offs in Q1 were ₹7-9 crore.

Outlook and guidance

• Disbursement growth expected at 18%-20%, AUM growth at 20%-23% for FY25; three-year AUM growth guidance at 20%-21%.

• Year-end credit cost guided at 27-28 bps, inclusive of non-housing and LAP.

• Spreads expected to exit FY25 at 5.8%-5.9%, with long-term ability to maintain above 5.7%.

• Housing finance market expected to grow at 13-15% CAGR between FY23 and FY26, with strong demand from low-income segments.

• Continued focus on expanding branch network and digital transformation to drive growth and efficiency.