Aadhar Housing Finance reported a strong Q2 FY’26, marked by 21% AUM growth reaching ₹27,554 crores. Disbursements rose by 16% Y-o-Y to ₹4,089 crores. Asset quality remained stable with gross NPAs at 1.42%. The company added 20 new branches, expanding its reach to 611 branches across 22 states, serving over 3.15 lakh customers. The company anticipates growth in the low-income housing segment, boosted by favorable policy reforms.
Strong Financial Performance
Aadhar Housing Finance announced its earnings for Q2 FY’26, reporting an AUM of ₹27,554 crores, representing a 21% year-over-year growth. The company’s disbursements reached ₹4,089 crores, a 16% Y-o-Y increase. The company has well-contained asset quality, reflected in gross NPAs at 1.42%.
Operational Expansion
During the quarter, Aadhar Housing Finance strategically added 20 new branches, which brings the total number of branches to 611 across 22 states and 549 districts. The company now serves over 3.15 lakh live customers.
Strategic Focus and Outlook
Aadhar Housing Finance is focusing on maintaining a healthy book and delivering consistent performance. The company’s cost-to-income ratio improved by 30 bps Y-o-Y. Balance transfer out for H1 FY ’26 stood at 5.4%. The affordable housing finance segment in the country is poised for significant growth in the coming quarters. PAT for H1 FY’26 was ₹504 crores, a growth of 18%, while Q2 FY’26 PAT was ₹266 crores, up 17%. The company delivered an overall PAT of Rs. 504 crores compared to Rs. 428 crores in H1 FY ’25.
Asset Quality and Borrowings
The company reported gross NPAs at 1.4% and NNPA at 1%. The Stage-II provision coverage ratio currently stands at 34.3%, with Stage-II dropping by approximately 20 bps sequentially. As of September 30, 2025, the company’s overall borrowings stood at ₹17,600 crores with 50% from banks.
Growth Drivers and Future Plans
The company emphasizes digital transformation to streamline processes, improve turnaround times, and enhance customer experience. Reduction in GST on inputs is expected to lower construction costs for developers, improving project viability and price affordability for homebuyers. The company is aiming for a further 10 bps improvement in overall cost of funds, potentially leading to a spread of around 5.8% by year-end.
Urban and Emerging Markets
Approximately 45% of Aadhar’s business currently comes from emerging markets, with a goal to reach a 50-50 model. The company plans to continue adding 50-55 branches, of which 15 will be in urban areas and 35 in emerging locations.
Source: BSE
