Aadhar Housing Finance (AADHARHFC) Q2 24/25 earnings summary

Executive summary

• Achieved 21% YoY AUM growth to INR 22,817 crore as of September 2024, with 100% retail secured book and no corporate/developer exposure.

• PAT rose 24% YoY to INR 428 crore for H1 FY25, with ROA at 4.2% and ROE at 16.5% post-IPO proceeds.

• Distribution network expanded to 545 branches across 21 states, serving over 277,000 loan accounts.

• Maintained strong asset quality with GNPA at 1.3% and improved cost-to-income ratio by 100bps YoY.

• Focus remains on EWS/LIG segments, leveraging technology and data analytics for operational efficiency.

Financial highlights

• Standalone total income for Q2 FY25 was INR 7,508 million, up from INR 6,140 million in Q2 FY24.

• Pre-provision operating profit increased 23% YoY to INR 5,817 million; PAT up 24% YoY to INR 4,277 million.

• Disbursements for H1 FY25 were INR 35,323 million, up 18% YoY.

• Cost-to-income ratio improved to 35.4%, a 100bps improvement YoY.

• Gross NPA improved to 1.29% from 1.35% YoY; collection efficiency above 99%.

Outlook and guidance

• Management expects to achieve full-year targets, with AUM growth guidance of 20%-23% for FY25.

• Credit cost for FY25 projected at 27-28 bps, inclusive of non-housing and LAP.

• Housing finance market expected to grow at 13-15% CAGR through FY26, with low mortgage penetration indicating significant growth potential.

• Continued focus on underserved low-income segments and leveraging technology for efficiency.

• Spreads expected to exit FY25 at 5.8%-5.9%, with a sustainable range of 5.6%-5.75% over 2-3 years.