Aadhar Housing Finance reported a 19% year-on-year increase in standalone net profit to ₹282 crore for Q1FY27, driven by an 18% expansion in Assets Under Management (AUM) to ₹31,364 crore. The housing finance company’s performance was supported by resilient demand in Tier II and Tier III markets, stable asset quality with Gross NPA at 1.31%, and efficient cost management. This growth trajectory positions the company to meet its medium-term guidance on disbursements and profitability, reinforced by strategic investments in AI-driven underwriting and risk management.

The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, on July 31, 2026, in compliance with SEBI LODR Regulations 30, 33, 51, 52, and 54. Joint Statutory Auditors S. R. Batliboi & Associates LLP and Kirtane & Pandit LLP submitted limited review reports confirming that the statements present fairly the financial position in accordance with Ind AS 34 and Listing Regulations.

Q1FY27 Financial Performance

Profit after tax (PAT) grew to ₹282 crore from ₹237 crore in Q1FY26. Return on assets (ROA) remained stable at 4.0%, while Return on equity (ROE) improved by 6 basis points to 14.7%. Net worth increased by 19% to ₹7,853 crore as of June 30, 2026.

Disbursement reporting methodology changed from cheque handover to cheque realization basis starting Q1FY27. On the new basis, disbursements stood at ₹2,036 crore compared to ₹1,979 crore in the prior year period. Under the previous cheque handover method, disbursements would have registered a 19% YoY growth to ₹23,590 million.

Operational Expansion and Technology

Aadhar Housing Finance maintained stable asset quality, with Gross NPA improving by 3 basis points to 1.31% as of June 30, 2026. The total number of loan accounts exceeded 340,000. The company’s ‘Urban and Emerging’ branch model continued to drive market penetration, expanding its network to 628 branches across 22 states and union territories.

Management highlighted that the operating environment for low-income housing finance remained favorable, supported by rising urbanization and low mortgage penetration. The implementation of PMAY-U 2.0 is expected to further accelerate credit demand in Economically Weaker Section (EWS) and Low Income Group (LIG) segments. Additionally, the company enhanced its AI and digital capabilities across key business processes to improve operational efficiency, credit assessment, and customer experience, aligning its AI framework with the RBI's draft Model Risk Management guidance.

Strategic Initiatives and Disclosures

During the quarter, the company assigned 4,088 non-default loan accounts worth ₹3,974.20 crore to another NBFC as part of its risk distribution strategy. These loans had a weighted average maturity of 151 months, with a retention of beneficial economic interest at 10%. Additionally, Aadhar Housing Finance raised ₹250 crore through private placement of Non-Convertible Debentures (NCDs) on June 18, 2026, with full utilization confirmed for stated objects. Secured NCDs are backed by pari passu first charge on book debts and specific immovable properties.

What the Numbers Show

The simultaneous growth in AUM (18%) and PAT (19%) indicates effective scale economies and disciplined underwriting. The improvement in ROE despite a leveraged balance sheet suggests that the cost of equity capital is being efficiently deployed into higher-yielding assets. Furthermore, the stabilization of GNPA at 1.31% amidst rapid loan book expansion reflects robust credit assessment processes, particularly in the vulnerable EWS/LIG segments. The shift in disbursement reporting to a realization basis provides a more conservative view of cash flows, enhancing transparency for investors.

Aadhar Housing Finance will host two physical meetings with analysts and investors in Mumbai this month, providing stakeholders with direct access to management. The interactions are scheduled for August 10 and August 13, 2026, allowing institutional participants to review the company’s strategic outlook and operational performance. These engagements aim to enhance transparency and facilitate detailed discussions regarding the housing finance sector’s current dynamics.

The company notified the Bombay Stock Exchange and the National Stock Exchange of India Limited of these schedules on July 27, 2026. This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with corresponding circulars and notifications issued thereunder. The management and officials of Aadhar Housing Finance Limited confirmed their participation in these events.

Both meetings will be conducted in person at prominent venues in Mumbai. The first session is part of the Nirmal Bang Institutional Equities event, held at Trident, BKC, on August 10, 2026. The second interaction will take place during the EMKAY Confluence event at the Grand Hyatt, Mumbai, on August 13, 2026. Both gatherings are classified as group meetings.

During these sessions, the company will utilize an Investors' Presentation that is scheduled to be uploaded on its official website and intimated to the stock exchanges on July 31, 2026. Management stated that discussions during the interactions will refer strictly to publicly available documents. This ensures that all information shared aligns with regulatory standards for fair disclosure.

Meeting Schedule

The company noted that the dates mentioned above are subject to change. Any modifications may occur due to exigencies on the part of the company, the analysts, or the investors/funds involved. Harshada Pathak, Company Secretary and Compliance Officer, signed the intimation letter, which was digitally dated July 27, 2026.