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View Claim Ledger →Aadhar Housing Finance Ltd — Q4 FY26
Aadhar Housing Finance delivered a strong Q4 FY26, with AUM crossing ₹30,571 crore (up 20% YoY) and disbursements hitting a record ₹3,387 crore (up 20% YoY).
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Aadhar Housing Finance delivered a strong Q4 FY26, with AUM crossing ₹30,571 crore (up 20% YoY) and disbursements hitting a record ₹3,387 crore (up 20% YoY). PAT grew 27% YoY to ₹311 crore, driven by stable spreads (5.82%), cost-to-income improvement of 55 bps to 35.9%, and pristine asset quality (GNPA 1.08%, down 30 bps QoQ). The affordable housing segment remains supported by structural demand, PMAY subsidies, and government initiatives. Management guided for 20% AUM growth, 20% PAT growth, and 17-18% disbursement growth in FY27, with a focus on maintaining spreads via LAP mix and emerging market expansion. Key risk: Geopolitical tensions (West Asia) could impact customer sentiment, though early indicators show no stress.
Promises0 met · 4 missedRisks4 trackedTranscriptfull text
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Geopolitical tensions (West Asia) impact on customer sentiment
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AUM
₹30,571 Cr
+20% YoY
Crossed ₹30,000 crore milestone; driven by steady demand and branch expansion.
Disbursements (Q4)
₹3,387 Cr
+20% YoY
Highest ever quarterly disbursement; supported by strong execution across branches.
GNPA
1.08%
-30 bps QoQ
Sequential improvement; asset quality remains pristine with collection efficiency >99.8%.
Cost-to-Income Ratio
35.9%
-55 bps YoY
Improved due to productivity gains and cost discipline; guided for further 50 bps drop.
What Changed vs Last Quarter
NEW
20% AUM growth for FY27
Management reiterated medium-term guidance of 20% AUM growth, 20% PAT growth, and 17-18% disbursement growth.
NEW
Cost-to-income ratio to drop ~50 bps in FY27
Targeting further improvement in cost-to-income ratio by about 50 basis points in the next financial year.
NEW
LAP mix to be maintained at ~25-26%
Management plans to keep loan against property (LAP) mix around 25-26% of disbursements, with room to increase if needed.
NEW
Spread contraction of 8-10 bps YoY expected
Spreads are expected to contract by 8-10 bps annually due to incremental yields being lower than book yields, but LAP mix can provide a lever.
DROPPED
AUM to cross ₹30,000 crore by FY26 end
Management reiterated guidance of crossing ₹30,000 crore AUM by end of FY26, implying continued growth momentum.
DROPPED
FY26 AUM growth of 20%+ and disbursement growth of 16-17%
Management expects AUM growth upward of 20% and disbursement growth close to 16-17% for FY26.
DROPPED
Credit cost guidance of 25-26 bps for FY26
Credit cost for FY26 expected to be within 25-26 bps, with potential for negative credit cost in Q4.
DROPPED
Year-end GNPA in range of 1.10-1.15%
Management guided year-end GNPA to settle between 1.10% and 1.15% of AUM.
NEW RISK
Geopolitical tensions (West Asia) impact on customer sentiment
Management acknowledged potential risk but noted no current stress in bounce rates or collections; NRI exposure is minimal.
NEW RISK
Interest rate stagnation or reversal
If inflation persists, interest rates may rise, impacting spreads; however, floating book (73% assets, 76% liabilities) provides pass-through ability.
NEW RISK
Competitive intensity in urban segments
Banks remain active in urban housing, but management sees limited impact on their low-income focus segment.
NEW RISK
LAP growth slowdown due to cautious stance
Deliberate reduction in LAP disbursements (21% in Q4 vs typical 28-29%) could pressure yields if not reversed.
RISK GONE
PLR cut may compress spreads
ALCO decided to cut PLR by 15 bps from February 2026, which could reduce spreads by ~12 bps, though management expects exit spread to still be 10-11 bps better than March 2025.
RISK GONE
Competition in affordable housing segment
Analyst raised concern about rising competition; management acknowledged competition in prime and affordable segments but sees limited impact in low-income segment where Aadhar operates.
RISK GONE
Punjab flood impact on growth
Management noted Punjab is still recovering from floods, leading to slower growth in that state.
Fast read
Guidance and risk preview
Management reiterated medium-term guidance of 20% AUM growth, 20% PAT growth, and 17-18% disbursement growth.
Management acknowledged potential risk but noted no current stress in bounce rates or collections; NRI exposure is minimal.
View Risks →