Aadhar Housing Finance (AADHARHFC) Q1 25/26 earnings summary

Executive summary

• AUM reached an all-time high of INR 26,524 crore (INR 265.2bn), up 22% year-over-year, with disbursements rising 32% to INR 1,979 crore (INR 19.8bn), and PAT increasing 19% to INR 237 crore (INR 2.37bn) for Q1 FY26.

• Net worth reached INR 6,616 crore, bolstered by IPO proceeds, and the company operates 591 branches across 22 states, including recent expansion into Assam.

• Technology and analytics, including AI/ML, are central to operations, improving efficiency and governance.

• The company maintains a 100% secured retail loan book, focusing on affordable housing and a granular, pan-India portfolio.

• Received multiple awards and recognitions, including NBFC of the Year under PMAY, NHB Excellence Award for Product Innovation, and a CARE rating upgrade to AA+.

Financial highlights

• Net interest margin for Q1 FY26 was 8.8%, with cost-to-income ratio improving to 36.1% and gross NPA stable at 1.34% (up 3bps YoY), and collection efficiency above 98%.

• Standalone total income for Q1 FY26 was ₹85,128 lakh, with PAT at ₹23,730 lakh; basic EPS was 5.4–5.5.

• Return on assets was 4.0%, and return on equity was 14.7% for Q1 FY26.

• Capital adequacy ratio stood at 44.1%–44.61% as of June 30, 2025.

• Exit portfolio yield at 13.8%, with an exit spread of 5.8%.

Outlook and guidance

• Growth guidance maintained at 20%-22% AUM and 18%-20% disbursement for FY 2026, with management optimistic about affordable housing growth supported by government initiatives and urbanization.

• Credit costs expected to trend at 25-27 basis points for the year, with seasonality impacting Q1.

• ROA targeted at 4.2%-4.3% for FY 2026; aspirational ROE at 17%-18% over the long term.

• Plan to add 50-60 branches annually for the next three years, focusing on emerging locations and digital transformation.