Aadhar Housing Finance Limited reported a 22% increase in Profit After Tax (PAT) to $117 Mn for the financial year ended March 31, 2026, driven by strong operational performance and asset growth. The housing finance company, focused on the low-income segment, saw its Assets Under Management (AUM) rise by 20% year-on-year to $3,218 Mn. Net worth increased to $794 Mn, while the company maintained a positive Asset Liability Management (ALM) position across all buckets.

Financial Performance

The company’s total income for FY26 grew by 19% to $388.1 Mn, compared to $327.3 Mn in the previous year. Net interest margin improved by 20% to $244.5 Mn. Operating expenses for the year were $87.7 Mn, leading to a pre-provision operating profit of $156.8 Mn, a 21% increase from the prior year. The cost-to-income ratio improved by 55 basis points on a year-on-year basis, reflecting enhanced operational efficiency.

Asset Quality and Metrics

Aadhar Housing Finance maintained stable asset quality during the year. The Gross NPA (GNPA) ratio was reported at 1.08% for FY26, consistent with the levels maintained in the previous year. The Net NPA (NNPA) ratio stood at 0.8%. The company’s portfolio yield was 13.5%, while the cost of borrowings was 7.7%, resulting in a spread that increased by 13 basis points in FY26.

Key Financial Metrics for FY26

Capital Adequacy and Provisions

As of March 31, 2026, the company’s Capital Adequacy Ratio (CRAR) stood strong with Tier I capital at 42.0% and Tier II capital at 0.5%. The total Expected Credit Loss (ECL) provision as a percentage of the portfolio was 1.2%. The Stage 3 provisions for loans with Days Past Due (DPD) greater than 90 were at 35.7%.

Business Overview

The company operates through a network of 626 branches, including offices, covering 22 states and Union Territories. Its distribution strategy includes a mix of main branches, small branches, micro branches, and ultra-micro branches to control operational costs. The average Loan-to-Value (LTV) ratio on Gross AUM was approximately 60% as of March 26, 2026.

Aadhar Housing Finance Limited has made the timely payment of interest on its listed Non-Convertible Debentures (NCDs). The company paid ₹15.52 crore on June 5, 2026, which was the scheduled due date for the annual interest payout. This payment confirms compliance with Regulation 57 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The interest payment relates to NCDs issued on a private placement basis with an issue size of ₹200 crore. The record date for determining the eligibility of shareholders for the interest payment was May 21, 2026. The actual payment was executed on the due date without any delay.

Details of Interest Payment

The certification was submitted to the stock exchange by Harshada Pathak, Company Secretary and Compliance Officer of Aadhar Housing Finance Limited. Copies of the communication have been sent to the debenture trustee, Beacon Trusteeship Limited, and the depositories NSDL and CDSL.