1. At a Glance
Low-income housing. High-income ambition. Aadhar Housing Finance Ltd (AHFL) is writing ₹10 lakh cheques faster than most people can say “EMI”. With a Rs 21,000+ Cr market cap, 37% profit CAGR over 5 years, and zero dividend generosity, it’s like your rich uncle who shows up with cash but never picks the restaurant tab.
2. Introduction with Hook
Imagine running a housing loan business so risk-averse, it makes banks look like Vegas gamblers. Aadhar’s loans average just ₹10L—basically one-bedroom dreams in Tier 3 towns. Their LTV? A tight 58%. It’s like lending money with one hand while holding the borrower’s house keys in the other.
Two fun facts:
- ₹912 Cr FY25 PAT — more than the GDP of a small island.
- ROE at 17% — not flashy, but steady like your dad’s fixed deposit.
3. Business Model (WTF Do They Even Do?)
They give loans to people who dream of owning homes, but whose wallets scream “next month, maybe.” Think under ₹15L loans, rural India, informal income folks — the kind of customers that scare traditional banks.
But Aadhar? They’ve made it a science:
- Borrow from markets
- Lend small
- Price in risk
- Sleep well at night
Basically, they’re the Uber for aspiring homeowners — minus the surge pricing.
4. Financials Overview
Cue the numbers:
| FY | Revenue (Cr) | Net Profit (Cr) | Growth % |
|---|---|---|---|
| FY23 | 2,043 | 545 | +22% |
| FY24 | 2,587 | 750 | +37% |
| FY25 | 3,108 | 912 | +22% |
Commentary:
- Financing margin is hovering at 39% — sharper than a CA’s pencil.
- PAT growth? Happier than a bank manager on bonus day.
- The only downside: still no dividend. Maybe they think love should be earned, not distributed.
5. Valuation
Let’s talk rupees and delusions.
- P/E: 22.6x TTM — not cheap, not IPO-level ridiculous.
- P/BV: 3.36x — premium for predictability.
- ROE: 17% — solid enough to justify a healthy multiple.
Fair Value Range:
- Based on 20x FY26E EPS (~₹28): ₹560
- EV/EBITDA method implies ~₹540–₹580
If you’re okay paying 3x book for consistency and rural dominance, welcome aboard. If not, LIC Housing is waving from the cheap seats.
6. What’s Cooking – News, Triggers, Drama
- CARE upgraded debt to AA+ (June 2025) — translation: lenders sleep easy.
- NCD Allotment: ₹200 Cr @ 7.76% (June 2025) — cheap money for long tail growth.
- Borrowing limit hiked to ₹30,000 Cr — someone’s gearing up to lend like Diwali sale.
- New Independent Director — buzzwords: governance, diversity, “fresh eyes”.
Plot twist? Not really. This is more KBC than Game of Thrones.
7. Balance Sheet
| FY | Equity Cap | Reserves | Borrowings | Total Assets |
|---|---|---|---|---|
| FY23 | ₹395 Cr | ₹3,303 Cr | ₹12,153 Cr | ₹16,618 Cr |
| FY25 | ₹431 Cr | ₹5,941 Cr | ₹16,322 Cr | ₹23,224 Cr |
Key take:
- Debt growing faster than hair on a mango tree in monsoon — but controlled.
- Net worth doubled in 3 years — like compounding but with loan books.
8. Cash Flow – Sab Number Game Hai
| FY | Ops CF | Inv CF | Fin CF | Net CF |
|---|---|---|---|---|
| FY23 | -₹1,156 Cr | -₹477 Cr | ₹1,463 Cr | -₹169 Cr |
| FY25 | -₹3,027 Cr | ₹160 Cr | ₹3,389 Cr | ₹522 Cr |
Quote of the year:
“Cash from operations is like gym attendance — always negative at the start.”
It’s backend-loaded. Lending business ka standard pain.
9. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 17% |
| ROCE | 11.4% |
| D/E | ~3x |
| P/E | 22.6 |
| PAT Margin | 29% |
Verdict:
ROE is decent. D/E is high but expected. PAT margin at 29% screams “we know our math.”
10. P&L Breakdown – Show Me the Money
| FY | Revenue | PAT | PAT Growth |
|---|---|---|---|
| FY23 | ₹2,043 Cr | ₹545 Cr | — |
| FY24 | ₹2,587 Cr | ₹750 Cr | +37% |
| FY25 | ₹3,108 Cr | ₹912 Cr | +22% |
“PAT grew 22%, but still no dividend? This is financial celibacy.”
11. Peer Comparison
| Company | CMP | P/E | ROE | PAT (TTM) |
|---|---|---|---|---|
| LIC HFC | ₹607 | 6.1 | 16.1% | ₹5,442 Cr |
| PNB HFC | ₹1009 | 12.9 | 12.3% | ₹2,041 Cr |
| Aptus | ₹349 | 23.2 | 18.6% | ₹751 Cr |
| Aadhar | ₹496 | 22.6 | 16.9% | ₹949 Cr |
It’s like choosing between family cars — all run fine, but some have better AC.
12. Miscellaneous – Shareholding, Promoters
| Quarter | Promoter | FIIs | DIIs | Public |
|---|---|---|---|---|
| Jun ’25 | 75.5% | 5.58% | 8.43% | 10.48% |
Other Stuff:
- Public shareholders dropping: maybe profit-booking post-IPO.
- No dividend: classic HFC hoarding cash like aunties hoard Tupperware.
- Share count increased from 395 Cr to 431 Cr: dilution alert!
13. EduInvesting Verdict™
Aadhar Housing Finance is like that friend who never throws parties but always pays his loans on time. No drama, no defaults, just strong execution in a boring (but massively scalable) niche.
- Pros: Roaring PAT growth, clean asset quality, AA+ credit.
- Cons: No dividend, pricey at 3.3x BV, interest coverage ratio is on a diet.
Final Take:
Aadhar is a solid salaried job in a world full of moonlighting crypto bros. You won’t triple your money, but you’ll sleep better than anyone holding PSU banks.
Written by EduInvesting Team | 25 July 2025
Tags: Aadhar Housing Finance Ltd, Q1 FY26 Results, Housing Finance, IPO, EduInvesting Premium, HFC Analysis, Low-Income Lending
