Aadhar Housing Finance

Strong AUM growth at 20%, asset quality improves

The income from operation of Aadhar Housing Finance increased 18.25% to Rs 984.56 crore in Q4FY2026. Overall OPM eased to 76.62% in Q4FY2026 from 77.13% in Q4FY2025, leading to 17.47% rise in operating profit to Rs 754.40 crore. Other expenditure as a percentage of total income moved down to 7.63% from 7.89% in Q4FY2026. The staff cost as a percentage of total income increased to 15.75% from 14.98% in Q4FY2026.

Other income increased 546.34% to Rs 7.95 crore. Interest cost increased 9.09% to Rs 343.33 crore. Depreciation moved up 64.34% to Rs 10.6 crore. Provisions increased 59.15% to Rs 10.17 crore. PBT moved up 26.06% to Rs 398.25 crore.

The effective tax rate declined to 21.93% in Q4FY2026 compared to 22.50% in Q4FY2025. Provision for tax was expense of Rs 87.33 crore, compared to Rs 71.07 crore. Profit after tax rose 26.99% to Rs 310.92 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate was nil in both the periods. Finally, Net profit attributable to owners moved up 26.99% to Rs 310.92 crore.

Book value of the company was at Rs 173.1 and adjusted book value was Rs 169.2 (net of NNPA) end September 2025.

Business highlights

AUM increased 20% to Rs 30571 crore end March 2026 over March 2025, of which retail home loans contributed Rs 22205 crore and other mortgage loans contributed Rs 8366 crore.

The disbursements have increased 20% to Rs 3087 crore in Q4FY2026.

Spread eased to 5.8% in Q4FY2026 from 6.0% in Q3FY2026, while improved from 5.7% in Q4FY2025.

The total number of branches stands at 626 end March 2026 from 580 branches at end March 2025.

Total number of loan accounts increased to 3.4 lakh at end March 2026.

Net worth stood at Rs 7541 crore at end March 2026.

Return on assets (ROA) for FY26 stood at 4.4%. Return on equity (ROE) FY26 stood at 15.9%.

Gross NPA at end March 2026 declined to 1.08% at end March 2026 from 1.38% at end December 2025.

Commenting on the Q4 & FY26 performance, Rishi Anand, MD & CEO of Aadhar Housing Finance said: Aadhar Housing Finance has delivered strong performance in FY2026, marked by consistent growth and stable asset quality, while crossing the ?30,000 crore AUM milestone and achieving its highest-ever quarterly disbursements in Q4 FY26. AUM stood at Rs 30,571 crore as of March 31, 2026, registering a year-on-year growth of 20%, while Profit after Tax for FY2026 grew by 22% YoY to Rs 1,108 crore.

Our strategic ?Urban and Emerging? branch model continues to deliver strong outcomes, with the network expanding to over 626 branches, deepening our reach across underserved and high-potential markets. Demand remains largely end-user driven, led by first-time homebuyers in emerging markets, while witnessing encouraging traction in urban markets, reinforcing our balanced and diversified growth strategy. Government initiatives such as PMAY 1.0 and PMAY 2.0 continue to support affordability for these customers, and we expect this to remain an important driver of demand going forward. Overall, the environment remains supportive, with steady demand in the EWS and LIG segments.

During the year, we also made focused investments in AI capabilities, which are beginning to reflect in improved turnaround times, stronger underwriting, and enhanced collections efficiency. We have started leveraging AI-led tools in select parts of the loan lifecycle and see this as an important area of development as we continue to scale.

Asset quality trends remain stable, supported by strong collection efficiency and disciplined underwriting, reflecting healthy borrower behaviour. Our focus remains on expanding our presence in underserved markets, improving productivity, and leveraging technology to enhance efficiency across the loan lifecycle.

Looking ahead, we remain confident in the medium-term outlook for the affordable housing segment. With strong structural drivers, improving operating leverage, and our continued focus on execution, we are well positioned to sustain growth while maintaining portfolio quality and delivering consistent returns.

Financial Performance FY2026

The income from operation of Aadhar Housing Finance increased 18.18% to Rs 3672.58 crore in FY2026. Overall OPM has increased to 78.19% in FY2026 from 78.13% in FY2025, leading to 18.26% rise in operating profit to Rs 2,871.52 crore. Other expenditure as a percentage of total income moved down to 6.74% from 6.92% in FY2026. The staff cost as a percentage of total income increased to 15.07% from 14.95% in FY2026.

Other income increased 1,017.19% to Rs 14.3 crore. There is 16.24% rise in interest cost at Rs 1364.39 crore and 26.86% rise in depreciation to Rs 32.02 crore, Provisions increased 18.42% to Rs 67.58 crore. Profit before tax increased 21.19% to Rs 1,421.83 crore. There was an extraordinary expense of 15.92 crore against nil in previous year. After which, PBT increased 19.83% to Rs 1,405.91 crore.

The effective tax rate declined to 22.05% in FY2026 compared to 22.28% in FY2025. Provision for tax was expense of Rs 310.03 crore, compared to Rs 261.43 crore. Profit after tax rose 20.18% to Rs 1,095.88 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate was nil in both the periods. Finally, Net profit attributable to owners rose 20.18% yoy to Rs 1,095.88 crore in FY2026.

Aadhar Housing Finance: Consolidated Results
Particulars	2603 (3)	2503 (3)	Var %	2603 (12)	2503 (12)	Var %
Income from Operations	984.56	832.61	18	3672.58	3107.63	18
OPM (%)	76.62	77.13	-51 bps	78.19	78.13	6 bps
OP	754.40	642.23	17	2871.52	2428.06	18
Other Inc.	7.95	1.23	546	14.30	1.28	1017
PBDIT	762.35	643.46	18	2885.82	2429.34	19
Interest	343.33	314.71	9	1364.39	1173.77	16
PBDT	419.02	328.75	27	1521.43	1255.57	21
Depreciation	10.60	6.45	64	32.02	25.24	27
Profit before Tax & Provisions	408.42	322.30	27	1489.41	1230.33	21
Provisions	10.17	6.39	59	67.58	57.07	18
PBT before EO	398.25	315.91	26	1421.83	1173.26	21
EO	0.00	0.00	-	-15.92	0.00	-
PBT after EO	398.25	315.91	26	1405.91	1173.26	20
Tax Expenses	87.33	71.07	23	310.03	261.43	19
PAT	310.92	244.84	27	1095.88	911.83	20
Profit attributable to non-controlling interest	0.00	0.00	-	0.00	0.00	-
Share of Profit/(Loss) from Associates	0.00	0.00	-	0.00	0.00	-
Net profit attributable to owners	310.92	244.84	27	1095.88	911.83	20
EPS *	28.5	22.7	?	25.5	21.1	?
Equity	435.7	431.4	?	435.7	431.4	?
Adj BV (Rs)	169.2	144.4	?	169.2	144.4	?
* EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

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