Aadhar Housing Finance Limited — Q3 FY26

Aadhar Housing Finance Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=J2FUnvKm8JM Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Aadhaar Housing Finance Q3 FI26 earnings conference call hosted by 0:10 10 seconds ICICI Securities Limited. As a reminder, all participant lines will be in the listenon mode and there will be an 0:18 18 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 0:25 25 seconds conference call, please signal an operator by pressing star 10 on your touchstone phone. Please note that this 0:34 34 seconds conference is being recorded. I now hand the conference over to Mr. Reshwa from ICICI Securities Limited. Thank you and over to you sir. 0:46 46 seconds Uh thank you. Uh hi good evening everyone and welcome to other housing Q3 F26 comingings call on behalf of ICA 0:54 54 seconds securities I would like to thank other management team for giving us the opportunity to host this call today we have with us the entire top management 1:02 1 minute, 2 seconds team of ADAR represented by Mr. Dankati executive vice chairman Mr. Ian MBM CEO 1:09 1 minute, 9 seconds Mr. Raj Vishnat Cu Mr. Sanuchani management relation I will now hand over the call to Mr. Visher for his opening 1:16 1 minute, 16 seconds remarks and then we'll open the floor for Q&A. Over to you sir. 1:21 1 minute, 21 seconds Thank you very much Ranish and a very good evening to you all. Thank you for joining us this late evening to discuss Aadhaar Housing Finance performance for 1:29 1 minute, 29 seconds third quarter and 9 months ended December 31st 2025. 1:34 1 minute, 34 seconds I would like to begin by wishing all of you a very happy and prosperous new year. The third quarter has been significant for the Indian housing 1:42 1 minute, 42 seconds finance sector with RBI reducing policy report rate by additional 25 bips in December bringing it down to 5.25%. 1:51 1 minute, 51 seconds This marks a cumulative easing of 125 basis points in 2025 which has significantly pushed home buying 2:00 2 minutes affordability particularly in the affordable and midsegments where customers are more sensitive to EMI 2:07 2 minutes, 7 seconds movements. Furthermore, we are seeing a tangible benefit out of GST 2.0 framework. The reduction in GST on 2:14 2 minutes, 14 seconds construction inputs like cement and brick is lowering the cost for developers and improving project viability. The combination of lower 2:23 2 minutes, 23 seconds borrowing cost and resilient buyer sentiment positions the housing finance market on a strong footing for 2026. 2:31 2 minutes, 31 seconds Overall, the combination of supportive policy measures, easing borrowing cost and sustained enduser demand provides a 2:39 2 minutes, 39 seconds constructive backdrop for affordable housing finance sector. Moving to Aadhaar's performance for the quarter. I 2:46 2 minutes, 46 seconds am happy to share that we continue to deliver healthy growth while maintaining strong portfolio quality. As of 31st 2:55 2 minutes, 55 seconds December 2025, our AUM stood at 28,790 crores registering a 20% yearon-year 3:04 3 minutes, 4 seconds growth. Disbburment for 9 month FI26 stood at 6,469 3:10 3 minutes, 10 seconds crores with a 15% yi increase and PAT stood at 797 crores registering a growth 3:18 3 minutes, 18 seconds of 20% reflecting steady lending momentum across our core segments. These 3:25 3 minutes, 25 seconds numbers reinforces our confidence on the historical guidance that we have given during the last three quarters and 3:32 3 minutes, 32 seconds further boosts our confidence as we enter quarter 4. 3:38 3 minutes, 38 seconds Our portfolio remains entirely secured with home loans and loan against property continuing to be well balanced 3:45 3 minutes, 45 seconds within the book. Asset quality remains well contained. Gross NPS stood at 1.38%. 3:52 3 minutes, 52 seconds a sequential improvement of four bips versus last quarter. Collection efficiency remained upward of 99% during 4:00 4 minutes the third quarter. Importantly, early bucket delquencies remained stable and stage 2 asset continues to show 4:08 4 minutes, 8 seconds improvement by 20 bits compared to the last quarter. Oneplus DPD also reflects an improvement of 30 bits on sequential 4:17 4 minutes, 17 seconds basis reflecting the effectiveness of our underwriting discipline and field level collection process. Our average 4:25 4 minutes, 25 seconds ticket size stands at 10.7 lakhs with 60% loan to value ratio reinforcing the resilience to of our portfolio. 4:34 4 minutes, 34 seconds The salaried segment continues to be at 55% of AUM aligning with our focus on borrow borrowers with stable and 4:42 4 minutes, 42 seconds predictable income profiles. Balance transfer uh outflows during the 9-month FY26 stood at a comfortable position of 4:51 4 minutes, 51 seconds 5.6% annualized of 50 bits improvement on Y basis which was supported by focused retention efforts and datadriven 5:00 5 minutes customer engagement. During this headquarter, we continued to expand our physical presence in a calibrated 5:07 5 minutes, 7 seconds manner. We added 10 10 new branches, taking our total network to 621 branches 5:14 5 minutes, 14 seconds across 22 states and 552 districts serving over 3.2 5:21 5 minutes, 21 seconds lakh live customers. Our geographic diversification remains strong with no single state contributing 5:29 5 minutes, 29 seconds disproportionality disproportionately to the AUM which is not greater than 15%. 5:34 5 minutes, 34 seconds Technology continues to be a key enabler of scale and efficiency. Our TCS enabled core system and data analytics framework 5:43 5 minutes, 43 seconds are reducing turnaround times, strengthening governance and improving customer experience across loan life 5:50 5 minutes, 50 seconds cycle. We continue to leverage analytics and machine learning tools to sharpen credit assessment, monitor early warning signals and support scalable growth. 6:02 6 minutes, 2 seconds The Pradhan mantri aasa PMAY 2.4 scheme continues to play a supportive role in driving demand across low-income and affordable segment. 6:13 6 minutes, 13 seconds Aadhaar continues to lead from the front on this very important initiative of the government of India spearheaded by 6:20 6 minutes, 20 seconds National Housing Bank. 10,000 plus customers have already received first stance of their interest subsidy under 6:27 6 minutes, 27 seconds this renewed program. The availability of interest subsidy under the PMI 2.0 has improved affordability for the 6:34 6 minutes, 34 seconds firsttime home buyers particularly in the EWS LI segments. We expect the scheme to gain further traction as 6:42 6 minutes, 42 seconds customer awareness improves, supporting dispersement growth in the affordable segment. 6:48 6 minutes, 48 seconds Looking ahead, we remain strongly optimistic about operating environment over the coming quarter. With strong 6:55 6 minutes, 55 seconds fundamentals, a diversified branch network and continued policy support for the affordable segment, we remain 7:03 7 minutes, 3 seconds confident of sustaining our growth trajectory and meeting our guidance for FI26 and in the medium term. We are 7:10 7 minutes, 10 seconds driving a key milestone of crossing 30,000 crum by the end of this financial year. Ahar remains steadfast in this 7:18 7 minutes, 18 seconds mission to enable home ownership for low-income families while delivering consistent and sustainable returns for our stakeholders. 7:27 7 minutes, 27 seconds Before I hand over to Rajes, our CFO, to take you through the financial performance, I would like to reinforce that we have a positive outlook for 7:36 7 minutes, 36 seconds quarter 4 FY26 and are very confident of meeting our medium-term growth guidance on AUM asset quality and all profitability matrices. 7:46 7 minutes, 46 seconds Over to you Rajes. Thanks Rishi. Uh good evening everyone. 7:51 7 minutes, 51 seconds I would like to like to take you through some of the financial data. Some of these have already been covered by Rishi but I would like to reiterate some of 7:58 7 minutes, 58 seconds these numbers. Uh in quarter 3 FI26 our AUM has grown by 20% on a Y ony basis. 8:06 8 minutes, 6 seconds Our overall borrowings as at 31st December 2025 stood at 17,500 crores 8:12 8 minutes, 12 seconds compared to 15,00 on 31st December 24 which is a growth of 16% on a Y-onby basis. The borrowing mix at the end of 8:21 8 minutes, 21 seconds 31st December 25 is 50% from banks. NHP share is 22%. NCD share is 21% and ECBS and others make up the balance of 7%. 8:33 8 minutes, 33 seconds Our incremental borrowing cost for quarter 3 FI26 stood at 7.5% and was 7.9% for a 9 months entered FI26. 8:44 8 minutes, 44 seconds We have 41 borrowing relationships. In quarter three, our NHB borrowings were 299 crores which came in at 6.6% and for 8:54 8 minutes, 54 seconds the 9month period, the NHP borrowing was around 600 crores which came in at a 7.4% cost. The exit cost of funds as at 31st December 2025 stood at 7.74%. 9:08 9 minutes, 8 seconds In terms of fixed and floating nature of the book, we run a very disciplined uh uh fixed and floating uh nature. 74% of 9:15 9 minutes, 15 seconds our borrowing and assets both are on floating basis. Undrawn sanctions as at 31st December 25 is 2,400 crores of 9:25 9 minutes, 25 seconds which we have around 950 crores which is still drawable from NHP. Liquidity at the end of quarter 3 FI26 stood at 1,435 9:35 9 minutes, 35 seconds crores. This is balance sheet balance sheet liquidity. Portfolio yield exit is 13.71 at the end of quarter 3 FI26 and I 9:44 9 minutes, 44 seconds repeating the exit cost of funds was 7.74%. 9:48 9 minutes, 48 seconds The exit spread hence stood at 5.97% as compared to 5.93% at the end of quarter 2. Our cost to income ratio for 9:58 9 minutes, 58 seconds 9 months FI26 stood at 34 35.4% as compared to 35.9% in 9 months FI25. 10:06 10 minutes, 6 seconds an improvement of approximately 50 bips on a Yony basis. This is in line with our guidance where we had stated that we would like to drop our cost to income by 10:15 10 minutes, 15 seconds around 50 bips for the current financial year. 10:18 10 minutes, 18 seconds GNPA as Rishi has said has come in at 31st December 25 at 1.38% as compared to 1.36% 10:27 10 minutes, 27 seconds in quarter 3 FI24 and the NNPA stood at 1% versus.9% last time same year capital adequacy 10:36 10 minutes, 36 seconds ratio stood at 43.6% 6% for tire 1 and 0.5% for tire 2. For 9 months FI26, the 10:44 10 minutes, 44 seconds PAT without the impact of the new labor code was 797 crores compared to 667 10:52 10 minutes, 52 seconds crores in 9 months FI25, rendering a growth of 20% Y on Y. The pack stood at 10:58 10 minutes, 58 seconds 294 crores for quarter 3 FI26 again without the impact of the new labor code compared to 239 crores in quarter 3 FI25 resulting in a growth of 23%. 11:10 11 minutes, 10 seconds ROA and ROE were 4.4% and 15.6% respectively. The 15.6% is also impacted 11:18 11 minutes, 18 seconds also because of the capital raise of,000 crores that we had done in last May. 11:23 11 minutes, 23 seconds For quarter 3, the ROI and ROE were 4.6%. 6% and 16.5% as compared to 4.4% and 15.8% in quarter 3 FI25. 11:35 11 minutes, 35 seconds Impact of the past service cost due to implementation of the new labor code is 16 crores and in line with the ICAI 11:43 11 minutes, 43 seconds guidelines we are shown this as an exceptional item. The number of employees as at 3 at 3 31st December 25 11:50 11 minutes, 50 seconds on on rolls were 5,200 employees and off roles were around 3,800 employees. We 11:57 11 minutes, 57 seconds are focusing on maintaining a healthy book and delivering a consistent performance among all metrices whether 12:03 12 minutes, 3 seconds it's growth AUM growth cost to income performance of a portfolio as well as profitability metrics. With that we can open up for questions. 12:16 12 minutes, 16 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 12:24 12 minutes, 24 seconds press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 12:31 12 minutes, 31 seconds may press star and two. Participants are requested to use handsets while asking a 12:38 12 minutes, 38 seconds question. Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 12:56 12 minutes, 56 seconds The first question is from the line of Abhishek Kumar Jen from Alpha Accurate. 13:02 13 minutes, 2 seconds Please go ahead. uh thanks for opportunity and congress for strong set of numbers. Sir uh you have delivered uh 13:10 13 minutes, 10 seconds very strong growth in the dispersment ahead of your peers. I just wanted to understand what gives you confidence 13:18 13 minutes, 18 seconds uh in sustaining it in the fourth quarter and the FY27 where that most of the uh peers are 13:27 13 minutes, 27 seconds struggling uh on on these parameters. 13:32 13 minutes, 32 seconds Uh thank you Abhishek for the question and thanks for your message on congratulations. U what gives us confidence is see we I I will not be 13:40 13 minutes, 40 seconds able to talk about um you know what others are doing but um the way I look at my current numbers even for January they are upward of what we delivered in 13:48 13 minutes, 48 seconds December. So um with the with the current pace of numbers I I foresee that the quarter 4 is completely protected 13:56 13 minutes, 56 seconds and the guidance numbers that we've been giving is completely protected. Um as we enter 2026 obviously we'll bring in on 14:03 14 minutes, 3 seconds table our our core competence has always been the branch network which we are very confident of and we are expanding branch network as I indicated even in 14:11 14 minutes, 11 seconds the last call we will keep adding about 40 to 50 branches year-on-year basis even as we go ahead in the next financial year. So a combination of multiple things uh gives us that 14:20 14 minutes, 20 seconds confidence that we will be able to deliver our commitments. 14:23 14 minutes, 23 seconds So can we expect that 20% kind of the uh dispersment growth in the next uh quarter onwards? 14:34 14 minutes, 34 seconds Uh I I would rather if I were to give this you're talking for the next financial year. Yeah. Uh yes sir. 14:42 14 minutes, 42 seconds Uh so let us look at the current financial year right now. uh current financial year AM which should be upward of 20%, disinvestment will be upward of 14:49 14 minutes, 49 seconds close to about 16 16 to 17%. Similarly the similar trends we would want to maintain next year and that's where the 14:56 14 minutes, 56 seconds confidence comes from. Okay sir. And my next question is stage two assets where we have seen very good improvement. Uh 15:04 15 minutes, 4 seconds what future three improvement broad-based or driven by specific geography like uh Surat and the Tamil Nadi? 15:13 15 minutes, 13 seconds I think it's a uh answering a question about stage two improvement. It is pretty broad-based. Uh we wouldn't be able to to specifically link it to any 15:21 15 minutes, 21 seconds particular uh geography. Uh honestly uh just preempting a question on this one. 15:27 15 minutes, 27 seconds We are not seeing any specific geography geographies behaving very very badly or or very superbly in the sense that whatever was has been our performance of 15:35 15 minutes, 35 seconds our portfolio for the last three four quarters is is sort of uh showing itself up in this quarter also. So neither has there been any uh drastic uh improvement 15:44 15 minutes, 44 seconds or drastic deteration. However, we are very happy with the way our stage 2 has been consistently dropping uh by 20 bips 15:51 15 minutes, 51 seconds consistently for the last two quarters which we believe is a good sign for maintaining the overall health of the portfolio and to for stopping slippages 16:00 16 minutes into stage three which is a 90 plus portfolio. Yeah, if I can if I can add to that Rajes Abishek you had a very 16:07 16 minutes, 7 seconds specific pointing out a city state called Tamil Nadu. So Tamil Ladu I I can understand where the question is coming 16:13 16 minutes, 13 seconds from. For us Tamil Ladu we've seen uh I would say substantial improvement on delinquency trends which is one plus and 16:21 16 minutes, 21 seconds 90 plus and if I can give a number 25 20 to 25% growth on disbbursement and aum 16:28 16 minutes, 28 seconds so for us Tamil Nadu has been a good location. 16:33 16 minutes, 33 seconds Okay sir and my last question on the PMA 2.0 incentives. So [clears throat] can you uh give a few updates on the 16:42 16 minutes, 42 seconds approval timeline dispersement linkage and uh in the upcoming budget are there any additional pol policy measures or 16:50 16 minutes, 50 seconds incentives uh housing finance company is scouting for or expecting for. 16:57 16 minutes, 57 seconds [clears throat] So uh one is PMA by update I gave in my speech uh and I told uh that we are a company which is leading from the front. We are the 17:06 17 minutes, 6 seconds highest uh subsidy takers today for our customers. 10,000 plus customers already avail the subsidy. Uh actually the traction of of PMI 2.0 has happened in 17:15 17 minutes, 15 seconds the last I would say one and a half quarters. Um the the total process starts only when we disperse the loan 17:22 17 minutes, 22 seconds and the TAT of of BA which is where through through NHB the nodal office where the subsidy comes from is anywhere 17:29 17 minutes, 29 seconds between two to three working days. So it's not too much of a turnaround time. 17:33 17 minutes, 33 seconds Um as regards expectation from uh the budget I think the previous budget has give has already put lot of things on the table. Uh we as an industry will 17:42 17 minutes, 42 seconds have to first deliver on those for example PMAY GST overall you know funds for stalled projects etc. Um what we 17:49 17 minutes, 49 seconds anticipate this time is maybe a redefinition of the word affordable in terms of ticket size that might just come in. 17:57 17 minutes, 57 seconds Got it. Thank you sir. That's also my Thank you. 18:02 18 minutes, 2 seconds Thank you sir. The next question is from the line of Arun from JM Financial. Please go ahead. 18:10 18 minutes, 10 seconds Hi sir, thank you for the opportunity. 18:12 18 minutes, 12 seconds Uh congratulations on a very good set of numbers. Uh just a couple of questions. 18:17 18 minutes, 17 seconds One uh credit cost for the quarter have slightly inched up despite uh the overall stage 3 PCR coming down. So 18:24 18 minutes, 24 seconds against this backdrop uh what would be your guidance for credit cost for the full year FI26 does a change? uh and 18:32 18 minutes, 32 seconds also uh where do you see your GNK level settling by the end of the year? 18:38 18 minutes, 38 seconds So, so basically credit cost if you look at quarter 3 fi 26 is 28% typically uh so we are very because typically as you 18:47 18 minutes, 47 seconds would be tracking the industry what happens in quarter 4 is we typically see an improvement in the overall NPA numbers I'm just going into the second 18:54 18 minutes, 54 seconds question which we are we are currently at about 1.38% and we basically believe that we may end in a tram line of 1.1 to 1.5%. 19:03 19 minutes, 3 seconds So if you look at that typically the credit cost in the last quarter will be very very minimal or sometimes could surprise us with a negative credit cost 19:12 19 minutes, 12 seconds also. So typically uh to that extent uh so you can assume that whatever credit cost on a YTD basis is there is going to 19:19 19 minutes, 19 seconds grow very very less and hence this gives us confidence that our uh credit cost number for the entire year will be 19:26 19 minutes, 26 seconds within the 25 bips as we had uh we had uh suggested earlier and the guidance that we had given earlier and that still remains our medium-term guidance when it 19:34 19 minutes, 34 seconds comes to credit cost along with our AUM guidance in the range of about 20 21%. 19:39 19 minutes, 39 seconds We are confident that we should be maintaining year-end uh AUM uh sorry year end NPL numbers in the range of 1.1 19:47 19 minutes, 47 seconds to 1.15% and credit cost in the range of about 25 26 bips in the medium-term I think we are confident of that. Second 19:54 19 minutes, 54 seconds question specific answer we should be ending the year uh at NPA levels of between 1.10 and 1.15% on AM. 20:04 20 minutes, 4 seconds Okay. Thank you sir. 20:07 20 minutes, 7 seconds Thank you sir. The next question is from the line of Chinten Sha from ICICI Securities Limited. Please go ahead. 20:16 20 minutes, 16 seconds Uh yeah, congratulations on the quarter. 20:19 20 minutes, 19 seconds Uh first of all and uh so yeah firstly in terms of the disment disbursement uh growth has been quite robust 14% uh 20:29 20 minutes, 29 seconds sequentially. Uh so any uh specific state which has led to some disbbursement uh and uh so given that um 20:37 20 minutes, 37 seconds we we we think peers we have seen many peers have been struggling on that front. So what is leading it to this disbbursement and secondly on this 20:44 20 minutes, 44 seconds disbbursement so this is also coming without any dep without any compression on the margins front. So going ahead also do we expect this disbburment trend to continue along with stable margins? 20:55 20 minutes, 55 seconds Uh yeah that's the first question. 20:57 20 minutes, 57 seconds [clears throat] 20:57 20 minutes, 57 seconds Uh hi Shintan I you know I'm while you're asking the question I'm struggling because all the states have 21:04 21 minutes, 4 seconds contributed almost equally so I don't want to pick up any particular state which has given me higher growth or lower growth everybody's contributed barring you know the barring one state 21:13 21 minutes, 13 seconds which I can point out Punjab which is still struggling from coming out of the flood situation because you know it takes a little little time rest all 21:21 21 minutes, 21 seconds those states have equally contributed so uh as regards margin are we confident of maintaining those margins as we go ahead in quarter four and end the year. Yes, we are very confident in that. 21:33 21 minutes, 33 seconds Uh sure. So basically I think there were some states like uh Tirupur, Kandur, Chennai which were probably impacted not 21:40 21 minutes, 40 seconds for us but for the industry overall. So that those states are also not leading to any those states are also growing at a decent pace. I think you already mentioned but just wanted to u get some. 21:50 21 minutes, 50 seconds No. So Shintan uh you know you're talking about specific cities which I think I only called out in the last call with regards to the tariff impact if that is the question. 21:59 21 minutes, 59 seconds Yeah I remember yeah yeah I I remember calling out textile and gems in these four cities would would get impacted but 22:08 22 minutes, 8 seconds uh I am also also equally surprised looking at our numbers. uh one is uh one thing I want to highlight it is on an AUM level these cities don't contribute 22:17 22 minutes, 17 seconds very large they're all sub 1% for me um but the the the good part here is if I look at the last two quarters movement last three quarters movement both on one 22:26 22 minutes, 26 seconds plus and on NPA all these states have performed very very good and if I can just indicatively give you one example 22:33 22 minutes, 33 seconds you know oneplus of oneplus drop of about 30 pips uh sorry 3% has happened in tirupur and npa drop off of of 7% has 22:42 22 minutes, 42 seconds happened in Pirupur and similar is a trend in Surat, Chennai and Kimatur. So overall a very comfortable zone to be in. 22:50 22 minutes, 50 seconds So that's very pleasant to s and sir I think on the BT out if you could just share the number I think that was 5.4% 22:57 22 minutes, 57 seconds for H1. So how is the BT out been in this quarter? Yeah. 23:03 23 minutes, 3 seconds Uh so we are in a similar trend uh Chintan. Uh 5.5% is what we have recorded. um which has a 23:11 23 minutes, 11 seconds drop from a 6.1% uh yi basis. So from a 6.1 we have come to 5.5% which is definitely an 23:19 23 minutes, 19 seconds improvement and obviously the the credit goes to the retention team and the data analytics team. 23:26 23 minutes, 26 seconds Sure. So there is no competition as such coming from the larger players which is likely to also impact this team. 23:34 23 minutes, 34 seconds I will not say there is no competition, you know. I would want to say that you know the teams here are doing a better job if that helps. Got it. 23:42 23 minutes, 42 seconds Okay. And thank you. I'll come back and take you. Thank you. And uh always Yeah. Thank you. 23:48 23 minutes, 48 seconds Thank you sir. The next question is from the line of Prity Raj Patel from Invest. Please go ahead. 23:58 23 minutes, 58 seconds Hi. Thanks for the opportunity. So I just wanted to know the oneplus GPD number for the quarter and [clears throat] uh how are geograph are 24:06 24 minutes, 6 seconds plans to expand it to other geographies and the plan to expansion just give some details on that. Hi Pritu. Uh thank you for the question. 24:15 24 minutes, 15 seconds I'll take the second question first. Uh in terms of plan for expansion into new geographies I I would say that we are available in all the possible geographies of the country. We are 24:23 24 minutes, 23 seconds available in 22 states. So there is no more state that is getting added but we will keep adding 40 to 50 branches year on year basically in the states that we 24:31 24 minutes, 31 seconds are present. Uh if you recall last time I spoke about our deeper impact strategy the strategy continues 30% of uh sorry 24:39 24 minutes, 39 seconds 30 branches of ours will keep coming in in the lower category which is deeper impact and the valance 20 will keep coming in the urban and and and emerging 24:46 24 minutes, 46 seconds a locations. So we'll keep expanding our network in the geographies that we have present. uh and on the oneplus number 24:54 24 minutes, 54 seconds the oneplus number as at uh December end is 6.86% 86% which is a 31 bits improvement on a sequential basis. It was 7.17% as end of September 25. 25:08 25 minutes, 8 seconds Sure sir. Thank you. Thanks. Thank you. Thank you sir. 25:14 25 minutes, 14 seconds The next question is from the line of Siraj Khan from Ascendency Capital. Please go ahead. 25:23 25 minutes, 23 seconds Thank you for the opportunity. uh uh firstly I wanted to know I mean uh based the numbers that I'm seeing in the PPT 25:31 25 minutes, 31 seconds the bio growth in the NHL uh NHL disjustment is almost 25%. And uh the HL 25:39 25 minutes, 39 seconds is only 11%. So I mean are we you know focusing more on NHL or uh is there like 25:45 25 minutes, 45 seconds a rollover effect happening because 11% growth in the HL HL disbursement seems a bit low. So are we seeing a little bit 25:53 25 minutes, 53 seconds of like uh going slow for any specific reason or this is by any rollover of any uh dispersements in the coming quarter? 26:03 26 minutes, 3 seconds Uh thank you sir for the question. Uh in fact if you look at our quarteronquarter performance our home loan has grown by about 14 14 and a half% and non-housing 26:11 26 minutes, 11 seconds has grown by 9%. So it's the other way around and and it's an impact of uh the refocus that we did post the tariff 26:19 26 minutes, 19 seconds issues etc. uh slight refocus has been done and this is interim. So will I go back and start doing a little more of 26:26 26 minutes, 26 seconds NHL as we go ahead yes we will but for the time being we kind of I would say kind of cautioned our teams uh and that's how the output is home loan has 26:34 26 minutes, 34 seconds again I'll give the numbers home loan has grown at 14% on a quarter or quarter basis and non-ousing has grown at 9%. 26:41 26 minutes, 41 seconds nom sorry on a on a on a y 9 month basis home loan has grown by 11 and a half% and non- housing by about 24%. 26:52 26 minutes, 52 seconds Correct. So I was referring to that I was referring to that itself because in the PPD it's a 9 month to 9 month comparison where it is 24.55 and back. 27:00 27 minutes So, so this is by design that we are completely by design. It is completely by design. You know, 7030 is is the 27:07 27 minutes, 7 seconds number that the regulator allows us to do and that's where we want to be. We don't want to breach that point. So, at any given point in time on an AUM basis, 27:14 27 minutes, 14 seconds we will we are today at about 27% if I'm not mistaken and you can correct me 27% NHL. We still have some room. So, we're 27:22 27 minutes, 22 seconds going to be maintaining a 30% bracket on that. 27:25 27 minutes, 25 seconds This is not a reflection on anything with respect to the a slowdown in the demand in the affordable segment or anything. Not at all just to understand. 27:33 27 minutes, 33 seconds Okay. Not at all. Uh so now because we are going slightly higher on the uh you know NHL side and um just to just to 27:41 27 minutes, 41 seconds confirm we have not taken any PLR cuts and with respect to uh an outlook on that because we have held the yields at 27:50 27 minutes, 50 seconds a good good place for the last four five quarters uh that 125 uh basis that you 27:56 27 minutes, 56 seconds had mentioned and it's happened uh on the ground we are seeing that there's a lot of competition so overall yields on 28:04 28 minutes, 4 seconds onboarding must be lower. uh where does the yield trajectory go and uh what is the timeline that you see with respect 28:12 28 minutes, 12 seconds to the PLR PLR cut and how much would be trans transmitted by so uh as we had uh as we had explained 28:20 28 minutes, 20 seconds in the past two calls uh in the case of uh downward trajectory of interest rates we are also morally and regulatory 28:29 28 minutes, 29 seconds required to pass on the interest rate benefit to the to our customers who are on a floating rate basis and as you would know we are 25% of our book is 28:37 28 minutes, 37 seconds broadly on a floating rate basis. In today's Alco uh the uh the Alco has decided uh to drop our rates by 15 bits 28:47 28 minutes, 47 seconds uh from February uh uh 2026. It could be applied between 10th and 15th of February 2026. A 15 bits drop which will 28:56 28 minutes, 56 seconds be impacting 75% or benefiting 75% of the customers. So technically the pass through will be to the range of 29:04 29 minutes, 4 seconds approximately uh 12 bips which will happen from February and as has been our basis uh what will happen is the last 29:11 29 minutes, 11 seconds three months of uh business will be uh will get this benefit over the next three months for example January business will get the benefit in May uh 29:20 29 minutes, 20 seconds December business will get the benefit in uh in April and the last will get it in the month of March. Basically that's the way we have taken on the way up on 29:28 29 minutes, 28 seconds the way down uh we we are we will be doing it in this way we believe on the cost of funds basis we are currently at 7.74%. 29:37 29 minutes, 37 seconds Maybe a as we enter quarter four we may have a two three bips improvement in our cost of funds beyond that I don't think 29:44 29 minutes, 44 seconds because we have already m to a great extent maxed out on the pass through if the banks have decide to pass through more mclr cuts probably we may be 29:53 29 minutes, 53 seconds benefited but otherwise we we broadly believe that another three four bips may come through so anyhow I think as we end 30:00 30 minutes the year we probably will end the year uh we currently are at about 5.95 plus% plus on spread I think as we end the 30:08 30 minutes, 8 seconds year we may end in a range of approximately uh 5.8% spread which importantly is about 10 to 11 bips 30:17 30 minutes, 17 seconds better than the exit spread as at March 31st 2025. So typically for the whole year we are protected and the exit 30:25 30 minutes, 25 seconds spread that we would have in March is projected to be at least 10 to 11 pips better than when we entered uh the current financial year. 30:38 30 minutes, 38 seconds Thank you. I'll stand back in the question. 30:40 30 minutes, 40 seconds Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one. Now, 30:48 30 minutes, 48 seconds participants who wish to ask questions may please press star and one at this time. 30:55 30 minutes, 55 seconds The next question is from the line of Malik Chri from Monach Network Capital Limited. Please go ahead. 31:04 31 minutes, 4 seconds Uh hello sir am I audible? Yes sir. Yes very much walik. Yes. Yeah yeah congrats on the good result. 31:13 31 minutes, 13 seconds So I just have one question. Uh just wanted to get your perspective on the competition like uh that is a broader narrative that the competition is 31:21 31 minutes, 21 seconds rising. So just wanted to know sir know your take on this. 31:27 31 minutes, 27 seconds Uh so Malik you know when we talk about competition it's a broad-based word. We will have to look at various segments. 31:34 31 minutes, 34 seconds For example, you know, there is competition in the prime segment. Then there is affordable segment and then there is low income segment and we operate in the low-inccome segment where 31:41 31 minutes, 41 seconds our average ticket size and low-inccome segment is typically those companies which operate in average ticket size um you know below 15 lakhs. That's where we 31:48 31 minutes, 48 seconds operate. Uh are we seeing any big traction here? I would uh defer and I would say no. We are not seeing any big traction here. Uh is there is that is 31:58 31 minutes, 58 seconds there competition in the affordable space? Today the affordable definition goes up to loans up to private sector definition goes up to 50 lakh rupees of 32:05 32 minutes, 5 seconds loans. So yes there is there is some traction happening there and there will always be a 5 7% overlap uh in the low 32:12 32 minutes, 12 seconds income space that we operate I we are not seeing big traction. Point number two here is to be noted is that we we 32:19 32 minutes, 19 seconds keep talking about you know 620 branches out of the 620 odd branches about 150 branches happen to be in the urban 32:26 32 minutes, 26 seconds locations for us and rest 450 plus branches happen to be the emerging locations. So as we go down into into deeper impact locations and emerging 32:35 32 minutes, 35 seconds locations the competitive intensity definitely goes down you know so that's how we will have to look at it. 32:43 32 minutes, 43 seconds Okay sir thank you thank you for the answer. Huh? So basically you know when I say no traction means it is competition is less. 32:52 32 minutes, 52 seconds Yeah yeah yeah. Okay. 32:55 32 minutes, 55 seconds Thank you sir. The next question is from the line of Siraj Khan from Ascendency Capital. Please go ahead. 33:03 33 minutes, 3 seconds Uh thank you for followup sir. uh you were mentioning that uh streaming if in the MCLR cuts happening that will also 33:11 33 minutes, 11 seconds benefit what of the total total book not the bank but of the total book how much is MCL 33:19 33 minutes, 19 seconds of the total bank total banks is about 50% uh and of the banks approximately 33:26 33 minutes, 26 seconds uh 23% is MCLR linked okay 23% is MCR linked so so 33:33 33 minutes, 33 seconds approximately 12% of so 12% I'll get one sec I'll just get the number just just hold on for one second 33:42 33 minutes, 42 seconds not a problem I I'll I'll move on to the next question while we get back so with respect to the U 33:50 33 minutes, 50 seconds number s I got the number 67% of bank borrowings is MCN are linked 33:58 33 minutes, 58 seconds so almost 30% of the total okay yes yes so on I mean we are we are holding holding up holding up quite good 34:07 34 minutes, 7 seconds and as you said that in some of the states that you had earlier called out with respect the tariff could could become an issue but it is positively 34:14 34 minutes, 14 seconds surprising us so on on with respect to the uh you know acceleration for growth you you are saying that at 20% is what 34:22 34 minutes, 22 seconds you're aspiring but say in uh say what would be the conditions with respect to some of the states say MP or a Tamil 34:30 34 minutes, 30 seconds Nadu or or some of the other states where you see there is good growth uh How much can the growth accelerate to? I 34:38 34 minutes, 38 seconds mean given that you are already going to cross the 30,000 cr what is uh what is on the upside that you see that growth 34:46 34 minutes, 46 seconds growth could go to uh and will the asset quality remain sustainable in in that range because you might you might you 34:54 34 minutes, 54 seconds know see a few other delicquencies coming here and there. 34:58 34 minutes, 58 seconds Okay. Um uh Siraj you know the way we look at our businesses there will be uh since we are in 22 states uh there will 35:06 35 minutes, 6 seconds be certain states who will give us higher double-digit growth. There will be certain states which will give us lower double digit growth. There will be certain states and I can call out states 35:14 35 minutes, 14 seconds whenever you want. There will be certain states where I I as an organization don't want to grow beyond single digit and there are multiple reasons around 35:23 35 minutes, 23 seconds it. So it's it is a combination since you called out Madhya Pradesh my the way we we look at Madhya Pradesh it should give me a Yi growth upward of 25%. You 35:32 35 minutes, 32 seconds know similarly a Maharashtra will give me up close to about 25 30%. So that's how you know uh the dynamic works there will be states 35:41 35 minutes, 41 seconds where for example where I have low legal support I want might want to grow only single digit because I still have presence there. So it's a combination of 35:49 35 minutes, 49 seconds multiple things but overall as as we indicated multiple times on this call uh we are very comfortable with a 20% AUM 35:56 35 minutes, 56 seconds growth in the current financial year and as we enter the next financial year 36:02 36 minutes, 2 seconds uh a quick statistic uh uh uh so what is your funnel with respect to the uh login to sanction and sanction to dispersement 36:11 36 minutes, 11 seconds uh uh see our our current login to sanction ratio would stand anywhere between 65 to 36:18 36 minutes, 18 seconds 66%. Uh and our login to disbbursement would range uh at about 39 to 40% today. 36:28 36 minutes, 28 seconds This is on count I believe. 36:33 36 minutes, 33 seconds So that's that's on volumes count is more or less similar 1% here and there. So count is more or less similar. 36:40 36 minutes, 40 seconds Understood. Understood. And because why am I why I'm asking this is because um as you say that you you try to uh 36:47 36 minutes, 47 seconds maintain 20% growth sustainably over the next uh medium over the medium-term two to three years the 20% growth breakdown 36:55 36 minutes, 55 seconds would be what I mean how much of it would be ATS how much of it would be say uh your uh uh branch expansion or 37:02 37 minutes, 2 seconds something else so how so how much will be this uh what will be the breakdown for this for this 20% or whatever 37:10 37 minutes, 10 seconds yeah I I I I yeah I think broadly to look at it is 5 to 6% will be typically linked to inflation. Uh and broadly the balance 37:18 37 minutes, 18 seconds would be a combination of productivity improvements which will happen with our existing mature branches and five to 6% will be the incremental business which 37:26 37 minutes, 26 seconds the branches set up in the last 18 months which start providing in the next financial. So that's a broad way of looking at 6% productivity gains, 6% 37:35 37 minutes, 35 seconds inflation related and 6% impact of new branches providing more. If I can add to that s you know the branches that I will 37:43 37 minutes, 43 seconds add next year will not give me traction for next year they will give me year after that. So that's how the model works. So for example the branches 40 or 37:51 37 minutes, 51 seconds 40 50 branches that I would have set this year will start giving me numbers next year. So that's the combination of the three things. So general decision 37:59 37 minutes, 59 seconds period is what 15 to 18 months I believe depends on the size of the branch. We 38:07 38 minutes, 7 seconds have four five categories of branches starts with sales office goes up to large setups. So anywhere between 12 to 18 months depending on the type of branch is is where it breaks even. 38:17 38 minutes, 17 seconds With your experience to say if you set up a sales office in say 18 months time it would reach up to say the medium 38:25 38 minutes, 25 seconds middle level say the small branch. And the way I'll tell you how the way we look at it uh if I set up a sales office within 9 months exactly 9 months it has 38:34 38 minutes, 34 seconds it should break even and after that it it should all be adding to the bottom line. 38:40 38 minutes, 40 seconds So what Rishi was alluding what Rishi was alluding to sales office is the lowest uh branch type category of men 38:47 38 minutes, 47 seconds that will take 9 months and the highest branch which will be a city branch and urban branch may take anywhere between 15 to 18 months because obviously the 38:55 38 minutes, 55 seconds target for him is also higher compared to a to a sales office. Yes. Right. Thank you very much. 39:03 39 minutes, 3 seconds Thank you sir. 39:04 39 minutes, 4 seconds Thank you sir. The next question is from the line of Sonel from Asian market securities. Please go ahead. 39:13 39 minutes, 13 seconds Uh s thanks for the opportunity and congrats on the quarter. Uh so I have three four questions. Uh one is on the code ending part. So if I look at the 39:22 39 minutes, 22 seconds numbers uh code ending seems to be a little low this quarter. Uh so if you could just uh you know give us some guidance on how do you see co lending 39:30 39 minutes, 30 seconds you know piece moving from here on any targets that you have on the dispersements or on the engine uh from the coating pack. Uh second is uh if you 39:38 39 minutes, 38 seconds could just let us know what are the incremental needs um for the for the quarter and uh also if you could give us some sense on how your uh you know 39:46 39 minutes, 46 seconds nonlook book is behaving because uh you slow down on reforcement. So any any signs that you're seeing of stress over there or is it more you know 39:55 39 minutes, 55 seconds precautionary wherein you know you've decided to go slow some some trend you know how is it currently in terms of delinquencies and how it was like a year 40:02 40 minutes, 2 seconds back. Uh and the fourth one is on the attrition rate. H you know if you could just let us know how the acquisition rates are and whether it is improved or 40:10 40 minutes, 10 seconds you know you're seeing some some you know increase in acquisition currently. Uh those are my four questions. 40:15 40 minutes, 15 seconds Yeah. So if you remember the four questions we will answer. We have forgotten the second question but uh uh the coal ending that we did 40:24 40 minutes, 24 seconds coalending is a small piece for us. We did only 26 crores of coending in the current quarter. Uh previous quarter was approximately 97 crores. So co-ending is 40:32 40 minutes, 32 seconds a smaller piece uh for us. We did direct assignment of approximately 440 crores in the in the current uh uh uh financial 40:41 40 minutes, 41 seconds year uh sorry current quarter and if you look at it the way we are looking at co-ending and assignment combination this year is that we have tempered the 40:50 40 minutes, 50 seconds proportion of co-ending and assignment and if you look at the income growth the the if you look at the growth in the P&L 40:58 40 minutes, 58 seconds which is a line item of which is a line item of upward initial recognition of income that has grown only by 11%, 41:06 41 minutes, 6 seconds whereas my AUM has grown by 20%. Another point which I think all of you you analysts do understand is what you see 41:13 41 minutes, 13 seconds on the face of the P&L is only the up the initial recognition we do on new assignment that we do of the assignments 41:21 41 minutes, 21 seconds that we have done on the past there is also an unwinding of upfront profit. So the net impact for the 9 month period is 41:28 41 minutes, 28 seconds to the total of approximately 22 to 23 crores which is a net impact on the 9 months profit. Uh so I think from that 41:36 41 minutes, 36 seconds perspective this is a very important number. So on the full 9 month pat uh the impact on the 9 month pat of the 41:44 41 minutes, 44 seconds overall secret and coending is only to the extent the net extent of 28 crores. 41:49 41 minutes, 49 seconds It was not 23 25 it was 28 crores. So on the total profit of for the 9-month period only a net income of 28 crores 41:58 41 minutes, 58 seconds has come from co- lending net of what has been uh uh unwound out of previous years co- lending that we did. Second 42:06 42 minutes, 6 seconds question if I was not mistaken was on or third question was on non-home loans and are you seeing the performance and behavior of non-home loan portfolio. 42:15 42 minutes, 15 seconds Okay. So on on non-h home loan let me give you a few numbers. One is uh on an overall basis y home loan has grown close to about 18% non- home loan close 42:24 42 minutes, 24 seconds to about 25%. uh in terms of uh yields uh you know there is a differential of about uh so in terms of NPA there is a 42:33 42 minutes, 33 seconds differential of about 65 to 70 bips but incrementally if you look at you should also look at in correlation with the yields risk adjusted yields are upward 42:41 42 minutes, 41 seconds of 300 bips so that's that's how you we look at uh NHL versus HL uh what was the next question sorry if 42:49 42 minutes, 49 seconds you want to employee attrition so employee attrition at the company level um if I if I remove regret attrition is about close to about 22%. 42:59 42 minutes, 59 seconds What was this number a year back? Uh year back. 43:04 43 minutes, 4 seconds So I come back to you have to get back on that. Uh sorry about that. Sir my question. Yeah, no worries sir. 43:11 43 minutes, 11 seconds Uh on nonhold loans so basically you just wanted to understand uh how is the book behaving? I mean is it similar or you know is it improving or uh you know 43:19 43 minutes, 19 seconds because you you've kind of tightened the credit filters over there. So uh generally what we hear commentary from others is you know there are seen some 43:27 43 minutes, 27 seconds threats over there. I just wanted to know. 43:29 43 minutes, 29 seconds No so so if I were to talk of of behavior in the last let's say four or five quarters since the time we've also 43:36 43 minutes, 36 seconds gone gone ahead and given a caution uh remark to our our teams uh the behavior has in fact uh bettered uh by about 20 bips. 43:47 43 minutes, 47 seconds Got it. And also incremental yields for the quarter. 43:52 43 minutes, 52 seconds Incremental yield of the quarter uh huh 13.1 for the quarter is 13.1. 44:00 44 minutes Okay. Yeah. That's it for me. Thank you. Thank you so much. 44:06 44 minutes, 6 seconds Thank you ma'am. Ladies and gentlemen, to ask question please press star and one. Now 44:14 44 minutes, 14 seconds participants who wish to ask question may please press star and one at this time. 44:24 44 minutes, 24 seconds The next question is from the line of Siraj Khan from Ascendancy Capital. Please go ahead. 44:33 44 minutes, 33 seconds Thank you again. Uh is there any material change in the uh repayment behavior? Not the BT out uh the 44:40 44 minutes, 40 seconds prepayment repayment behavior. uh I mean uh one of our peers uh one of our peers was uh including that they are seeing 44:47 44 minutes, 47 seconds elevated repayments repayments uh uh in their in their book u so are so basically it's a good thing if we are 44:55 44 minutes, 55 seconds also seeing that uh because that means our book is book is strong but are we seeing normal payment behavior or people 45:02 45 minutes, 2 seconds are coming uh to you with uh you know cash and trying to repay and prepay at a much faster rate that you have generally 45:09 45 minutes, 9 seconds seen No, I think uh sir, thanks for the question. I think uh if you take the overall amum runoff for the 9 months FI25 was 17.5%. 45:20 45 minutes, 20 seconds And if you look at 9 months FI26 is only 16.8%. So on a overall basis uh our our runoff of our opening amum is lower. 45:28 45 minutes, 28 seconds Obviously it was aided by a combination of two factors. One is the lower BT out which has happened. Second, more importantly in the specific question of 45:37 45 minutes, 37 seconds repayment behavior triggered by the customer, we are not seeing any material uh differentiation between the two uh periods of the customer coming and doing 45:46 45 minutes, 46 seconds either a part prepayment or a uh full foreclosure of the loans. It is behaving quite similar to the trend that we had in the last financial year. We are very 45:54 45 minutes, 54 seconds happy with the with the runoff of our portfolio. In fact, if you remember, we have always been saying that the runoff of the portfolio will be in the range of 46:01 46 minutes, 1 second about 17 to 18%. uh and uh we have entered FI 269 months uh that is uh December 25 we have ended at a runoff of 46:10 46 minutes, 10 seconds about 16.8% 8% on the opening am which we believe is a which a very robust number which helps into maintaining and 46:18 46 minutes, 18 seconds maintaining our overall amount of BT BT thing how much of so of the BT 46:26 46 minutes, 26 seconds that is that we have we have saved it but what was the BT out request for I mean was it purely for the rate or or 46:35 46 minutes, 35 seconds how like what was the composition for the request people are people are asking for going to BT out for more top offs more rate what was it and how much of it 46:43 46 minutes, 43 seconds was retained? So like if we got 100 requests for BT, how much were retained and what was the composition of the 100 requests? 46:52 46 minutes, 52 seconds Uh so siraj if I can take that question. 46:55 46 minutes, 55 seconds See BT request is very hard to say you know sometimes it's a combination of request for rate and top up sometimes it is only top up sometimes it is only 47:04 47 minutes, 4 seconds rate. uh we as an organization uh we generally avoid doing topups in uh u till about 18 months of dispersement of 47:12 47 minutes, 12 seconds the loan because we don't want to revaluate the property. Uh so that's where if the customer still wants to reevaluate the property and go we would 47:19 47 minutes, 19 seconds allow him to go u but it's a combination of multiple things. Sometimes he just comes for comes for a rate and the moment you say okay fair I can still 47:27 47 minutes, 27 seconds look at this rate he would say give me some top up also. So it's a it's a combination very difficult to point out but approximately I would say 25 to 30% would come for uh rate requirements. 47:39 47 minutes, 39 seconds Okay. Uh and like so what was the number of requests if you can give or if or or you could give me like a percentage of 47:47 47 minutes, 47 seconds of how many requests that had come for BT how much did you retain? 47:52 47 minutes, 52 seconds Uh apologies here Siraj I am not having that number ready with me but I will ensure that Sanjay gives that number to you. Sure, sure, sure. Uh um thank you. 48:03 48 minutes, 3 seconds Thank you. Thank you, sir. Thank you, sir. 48:16 48 minutes, 16 seconds Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments. 48:26 48 minutes, 26 seconds Uh thank you. Thank you friends for joining our call on a Friday evening. U I hope we have been able to answer all 48:35 48 minutes, 35 seconds your questions. Again as you would reiterate uh we believe as management we have delivered consistently not only in this quarter but the whole financial 48:42 48 minutes, 42 seconds year uh and whether on our guidance that we had set out at the start of the year in terms of AUM growth uh disbbursement 48:50 48 minutes, 50 seconds profitability cost to income I think both for the 3 months period as well as 9 months period we have achieved that and as Rishi has alluded during the call 48:58 48 minutes, 58 seconds we are quite confident of achieving that both in quarter 4 and the near-term future. So we look really forward for 49:05 49 minutes, 5 seconds the closure of quarter 4 and as we get into FI27 uh and uh we will be happy to take any further questions if anyone has they can 49:14 49 minutes, 14 seconds get in touch with our investor relations team uh and happy to take those questions uh and as one of the questioners said we would also like to 49:20 49 minutes, 20 seconds see a good budget uh and a budget which supports the low-inccome and affordable housing industry. With that words I think we can get the call to end. Thank you from the management side. 49:30 49 minutes, 30 seconds Thank you everyone. Thank you so much. 49:34 49 minutes, 34 seconds Thank you sir. On behalf of ICICI Securities Limited, that concludes this conference call. Thank you for joining us.