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. CEORishi Anandsounded more like a patient architect than a banker, detailing how 611 branches are now building India’s affordable future. CFORajesh Viswanathanadded 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:Improved20 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%; target7.75–7.8% exit FY26.
- Capital Adequacy:44.8% (Tier-1 44.3%) — fortress balance sheet.
- Branches:611 across22 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 byfavorable GST 2.0 reforms— lowering construction costs and improving affordability.
- Group AUM up 21% YoY; balanced exposure withno state >15%of AUM.
- Expansion via20 new branches; tech integration (TCS Core System) improving turnaround time.
- Digital pushthrough 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-Incomeat36.1%, 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 |
5. Analyst Highlights
Renish (ICICI):
- Why better asset quality than peers?➤ Diversified book, no state >15% AUM. Exposure to stress-prone markets (Tirupur, Surat, Coimbatore) just1.7% of AUM, with sequential improvement in 1+DPD.
- Disbursement muted QoQ?➤ Base effect — last year’s Q2 inflated due to regulatory timing. FY26 disbursement guidance18–20%intact.
Sonal (AMSEC):
- Home loan degrowth?➤ Extended monsoons & underwriting caution in textiles/pharma. Outlook positive for H2.
- Spread outlook?➤ Expect 10 bps improvement in CoF; FY26 exit spread
