1. Opening Hook
While metros debated interest rates and luxury towers, Aadhar Housing Finance quietly financed the dream homes of India’s low-income families — one ₹10 lakh loan at a time. The company’s Q2FY26 performance read like a masterclass in execution: disciplined growth, clean books, and laser-focused governance. CEO Rishi Anand sounded more like a patient architect than a banker, detailing how 611 branches are now building India’s affordable future. CFO Rajesh Viswanathan added the precision: yields up, spreads steady, costs under control. And together, they had a clear message — Aadhar isn’t chasing glamour, it’s compounding quietly in the alleys of Tier-3 India.
2. At a Glance
- AUM: ₹27,554 crore, up 21% YoY — steady compounding in motion.
- Disbursements: ₹4,089 crore, up 16% YoY — strong H1 momentum.
- PAT: ₹266 crore in Q2 (up 17% YoY); H1 PAT ₹504 crore (+18% YoY).
- Gross NPA: 1.42% | Net NPA: 1.0% — asset quality tight as a drum.
- Stage-II assets: Improved 20 bps YoY — trend heading the right way.
- Collection Efficiency: 98.96% — best-in-class among peers.
- Portfolio Yield: 13.8%; Spread: 5.9% — stable and resilient.
- Borrowing Cost: 7.9%; target 7.75–7.8% exit FY26.
- Capital Adequacy: 44.8% (Tier-1 44.3%) — fortress balance sheet.
- Branches: 611 across 22 states & 549 districts, 3.15 lakh customers served.
- AUM Mix: 73% home loans | 27% LAP.
- Salaried Borrowers: 55% | Average Ticket Size: ₹10.5 lakh | LTV: 60%.
3. Management’s Key Commentary
Rishi Anand (MD & CEO):
“H1FY26 has been marked by strong performance, operational efficiency, and customer-focused growth. Our disciplined execution and diversified presence ensure
stability even in turbulent markets.”
- Growth supported by favorable GST 2.0 reforms — lowering construction costs and improving affordability.
- Group AUM up 21% YoY; balanced exposure with no state >15% of AUM.
- Expansion via 20 new branches; tech integration (TCS Core System) improving turnaround time.
- Digital push through AI/ML for underwriting and collection efficiency.
- Positive on policy tailwinds: PMAY 2.0, Agnicart 2025, and GST rationalization to drive housing demand in EWS/LIG segments.
Rajesh Viswanathan (CFO):
“We are committed to maintaining spreads, controlling opex, and ensuring a structurally sound balance sheet with 44% capital adequacy.”
- Cost-to-Income at 36.1%, improving 30 bps YoY.
- Borrowing mix: Banks 50%, NHB 21%, NCDs 22%, ECB/Others 7%.
- Liquidity: ₹2,270 crore (≈10% of loan book).
- Undrawn sanctions: ₹2,381 crore (incl. ₹1,250 crore NHB).
- Matching profile: 73% floating-rate borrowings vs 75% floating assets.
4. Key Metrics Table
| Metric | Q2FY26 | Q2FY25 | YoY | Commentary |
|---|---|---|---|---|
| AUM (₹ Cr) | 27,554 | 22,780 | +21% | Consistent expansion |
| Disbursements (₹ Cr) | 4,089 | 3,528 | +16% | Seasonal moderation due to extended monsoons |
| PAT (₹ Cr) | 266 | 228 | +17% | High-quality earnings |
| GNPA (%) | 1.42 | 1.34 | +8 bps | Controlled |
| NNPA (%) | 1.00 | 0.90 | +10 bps | Strong provisioning |
| Collection Efficiency (%) | 98.96 | 98.8 | Stable | Industry-leading |
| Portfolio Yield (%) | 13.8 | 13.6 | +20 bps | Lending discipline intact |
| Spread (%) | 5.9 | 5.8 | +10 bps | Margin comfort continues |
| Cost of Borrowing (%) | 7.9 | 8.1 | -20 bps | Efficient refinancing |
| Capital Adequacy (%) | 44.8 | 43.2 | — | Ample cushion |
| Cost-to-Income (%) | 36.1 | 36.4 | -30 bps | Operational leverage improving |
