Aadhar Housing Finance (AADHARHFC) Q2 25/26 earnings summary

Executive summary

• Achieved 21% year-over-year AUM growth to INR 27,554 crore (INR 276bn) as of September 30, 2025, with a 100% secured retail book and focus on low-income housing.

• PAT rose 18% year-over-year to INR 504 crore (INR 5,038mn) for H1 FY26, with disbursements up 16% to INR 4,089 crore (INR 41bn).

• Operates 611 branches across 22 states/UTs, serving over 315,000 customers, with no single state exceeding 15% of AUM.

• Digital transformation and data analytics initiatives enhanced operational efficiency and customer experience, with 97% NACH conversion and 100% paperless onboarding.

• Maintained strong asset quality with GNPA at 1.4%-1.42% and a stable ROA of 4.2%.

Financial highlights

• Total income for H1 FY26 increased 18% year-over-year to INR 1,751 crore (INR 17,506mn); net interest margin was INR 10,770mn, up 18% year-over-year.

• Pre-provision operating profit grew 18% year-over-year to INR 6,878mn.

• Earnings per share (diluted) for H1 FY26 stood at 11.4; basic EPS for Q2 FY26 was 6.16.

• Net worth reached INR 6,894 crore (INR 69bn) as of September 2025, including INR 1,000 crore from IPO primary infusion.

• Return on assets (ROA) for H1 FY26 was 4.2%; return on equity (ROE) was 15.1%-16.5%.

Outlook and guidance

• Management is confident of meeting full-year growth guidance, targeting 20%-22% AUM growth and 18%-20% profit growth.

• Disbursement growth for FY2026 expected at 18%, with positive sector outlook driven by GST 2.0 reforms, government schemes, and urbanization.

• Continued focus on low-income housing, digital transformation, and operational efficiency.