Aadhar Housing Finance FY26: PAT Rises 22%, AUM Crosses ₹30,000 Crore Mark
Aadhar Housing Finance delivered strong FY26 results with AUM crossing ₹30,571 crore (20% YoY growth), PAT rising 22% YoY to ₹1,108 crore, and record Q4 disbursements of ₹3,087 crore. Standalone total income grew to Rs 3,68,654 lakhs, with CRAR at 42.49% and GNPA stable at 1.08%, while a promoter change saw BCP Asia II Holdco VII Pte. Ltd. acquiring 64.90% equity stake.
*this image is generated using AI for illustrative purposes only.
Aadhar Housing Finance Limited's Board of Directors, at its meeting held on May 5, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, as reviewed and recommended by the Audit Committee. The results were audited by joint statutory auditors M/s. S.R. Batliboi & Associates LLP and M/s. Kirtane & Pandit LLP, both of whom issued unmodified audit opinions on the standalone and consolidated financial statements. The company delivered strong performance for the year, marked by record growth in Assets Under Management (AUM), stable asset quality, and consistent profitability.
Key Performance Highlights
The company crossed the ₹30,000 crore AUM milestone during the year, with total loan accounts exceeding 3,36,000 as of March 31, 2026. The following table presents the key operational and financial metrics for FY26 and Q4 FY26:
| Particulars: | FY26 | FY25 | YoY | Q4 FY26 | Q4 FY25 | YoY |
|---|---|---|---|---|---|---|
| AUM (₹ Cr): | 30,571 | 25,531 | 20% | 30,571 | 25,531 | 20% |
| Disbursements (₹ Cr): | 9,556 | 8,192 | 17% | 3,087 | 2,566 | 20% |
| Profit after Tax (₹ Cr): | 1,108* | 912 | 22% | 311 | 245 | 27% |
| Net Worth (₹ Cr): | 7,541 | 6,372 | 18% | 7,541 | 6,372 | 18% |
| ROA (%): | 4.4%* | 4.3% | +7 bps | 4.8% | 4.4% | +38 bps |
| ROE (%): | 15.9%* | 16.9%** | -92 bps | 17.1% | 15.9% | +122 bps |
| GNPA on AUM (%): | 1.08% | 1.05% | +3 bps | 1.08% | 1.05% | +3 bps |
* Excluding impact of new labour code pertaining to past period service cost of ₹16 Crs (Net of tax ₹12 Crs).
** Includes lower base effect of primary infusion of ₹1,000 Crs in May 2024.
Disbursements for Q4 FY26 stood at ₹3,087 crore, reflecting a growth of 20% YoY, marking the highest-ever quarterly disbursements by the company. Return on assets (ROA) stood at 4.4% and return on equity (ROE) stood at 15.9% for FY26. Gross NPA as of March 31, 2026, stood at 1.08%, reflecting stable asset quality.
Standalone Financial Performance
On a standalone basis, total income grew to Rs 3,68,654 lakhs from Rs 3,10,862 lakhs in the previous year, driven primarily by interest income which rose to Rs 3,24,390 lakhs from Rs 2,71,899 lakhs. The following table summarises key standalone income statement metrics:
| Metric: | Q4 FY26 (Audited) | Q3 FY26 (Unaudited) | Q4 FY25 (Audited) | FY26 (Audited) | FY25 (Audited) |
|---|---|---|---|---|---|
| Interest Income (Rs lakhs): | 85,145 | 83,298 | 72,240 | 3,24,390 | 2,71,899 |
| Fees and Commission Income (Rs lakhs): | 5,911 | 5,128 | 5,439 | 21,075 | 19,935 |
| Total Revenue from Operations (Rs lakhs): | 98,447 | 94,265 | 83,252 | 3,67,229 | 3,10,735 |
| Total Income (Rs lakhs): | 99,235 | 94,372 | 83,375 | 3,68,654 | 3,10,862 |
| Finance Costs (Rs lakhs): | 34,333 | 34,750 | 31,471 | 1,36,439 | 1,17,377 |
| Employee Benefits Expense (Rs lakhs): | 14,139 | 11,918 | 10,911 | 49,977 | 40,718 |
| Total Expenses (Rs lakhs): | 59,436 | 56,799 | 51,727 | 2,26,488 | 1,93,481 |
| Profit Before Tax (Rs lakhs): | 39,799 | 35,981 | 31,648 | 1,40,574 | 1,17,381 |
| Profit After Tax (Rs lakhs): | 31,065 | 28,119 | 24,524 | 1,09,549 | 91,211 |
| Total Comprehensive Income (Rs lakhs): | 31,982 | 28,066 | 24,057 | 1,10,015 | 90,744 |
Total expenses for FY26 stood at Rs 2,26,488 lakhs compared to Rs 1,93,481 lakhs in FY25, with finance costs accounting for Rs 1,36,439 lakhs and employee benefits expense at Rs 49,977 lakhs. An exceptional item of Rs 1,592 lakhs was recorded during the year, pertaining to the estimated financial implication of the Government of India's notification of four Labour Codes on November 21, 2025, which resulted in an increase in liability towards gratuity and compensated absences arising out of past service cost (net of tax Rs 1,240 lakhs).
Earnings Per Share and Key Ratios
Standalone basic earnings per share for FY26 stood at Rs 25.31 and diluted EPS at Rs 24.76. For the quarter ended March 31, 2026, basic EPS was Rs 7.15 and diluted EPS was Rs 7.01. Key financial and asset quality ratios as at and for the year ended March 31, 2026 are presented below:
| Ratio: | As at / For Year Ended March 31, 2026 |
|---|---|
| Debt Equity Ratio: | 2.40 |
| Net Worth (Rs lakhs): | 7,53,454 |
| Net Profit Margin (%): | 29.72% |
| Total Debts to Total Assets (%): | 68.99% |
| GNPA (%): | 1.09% |
| NNPA (%): | 0.71% |
| Provision Coverage Ratio (%): | 35.68% |
| Capital Adequacy Ratio (CRAR) (%): | 42.49% |
| Liquidity Coverage Ratio (LCR) (%) (avg. last 90 days): | 267.02% |
| Asset Cover Ratio against secured debt securities (No. of Times): | 1.10 |
Consolidated Financial Performance
On a consolidated basis, which includes the subsidiary Aadhar Sales and Services Private Limited, the group reported total income of Rs 3,68,688 lakhs for FY26 against Rs 3,10,891 lakhs in FY25. Consolidated profit after tax for FY26 was Rs 1,09,588 lakhs compared to Rs 91,183 lakhs in the prior year. Total comprehensive income on a consolidated basis stood at Rs 1,10,211 lakhs for FY26 versus Rs 90,803 lakhs in FY25. The subsidiary contributed total revenues of Rs 5,545 lakhs and net profit after tax of Rs 39 lakhs for the year ended March 31, 2026.
Balance Sheet and Loan Portfolio
Standalone total assets grew to Rs 27,38,990 lakhs as at March 31, 2026 from Rs 23,21,627 lakhs as at March 31, 2025. Housing and other loans, the primary asset, expanded to Rs 24,83,959 lakhs from Rs 20,48,410 lakhs. The following table presents key standalone balance sheet items:
| Particulars: | March 31, 2026 (Rs lakhs) | March 31, 2025 (Rs lakhs) |
|---|---|---|
| Cash and Cash Equivalents: | 71,299 | 87,682 |
| Housing and Other Loans: | 24,83,959 | 20,48,410 |
| Investments: | 63,109 | 50,885 |
| Total Assets: | 27,38,990 | 23,21,627 |
| Debt Securities: | 3,61,917 | 3,38,882 |
| Borrowings (other than debt securities): | 15,06,423 | 12,87,329 |
| Total Equity: | 7,53,460 | 6,36,796 |
On the liabilities side, borrowings (other than debt securities) increased to Rs 15,06,423 lakhs from Rs 12,87,329 lakhs, while debt securities stood at Rs 3,61,917 lakhs. Total equity on a standalone basis rose to Rs 7,53,460 lakhs from Rs 6,36,796 lakhs.
Cash Flow Summary
For the year ended March 31, 2026, net cash used in operating activities stood at Rs (2,80,972) lakhs on a standalone basis, reflecting significant disbursements of Rs (9,55,568) lakhs towards housing and other property loans, partially offset by loan repayments received of Rs 3,44,984 lakhs and interest received on loans of Rs 3,08,732 lakhs. Net cash generated from investing activities was Rs 31,037 lakhs, while net cash generated from financing activities amounted to Rs 2,33,552 lakhs, driven by proceeds from bank and institution loans of Rs 4,74,787 lakhs and National Housing Bank loans of Rs 1,30,400 lakhs. Cash and cash equivalents at the end of the year stood at Rs 71,299 lakhs compared to Rs 87,682 lakhs at the beginning of the year.
IPO Proceeds Utilisation
The company confirmed that IPO proceeds of Rs 1,00,000 lakhs raised via fresh issue in May 2024 have been fully utilised as at March 31, 2026, with no deviation or variation reported. The utilisation is summarised below:
| Object of Issue: | Amount to be Utilised (Rs lakhs) | Amount Utilised upto March 31, 2026 (Rs lakhs) | Unutilised (Rs lakhs) |
|---|---|---|---|
| Future capital requirements towards onward lending: | 75,000 | 75,000 | - |
| General corporate purpose: | 20,233 | 20,233 | - |
| Issue related expenses: | 4,767 | 4,767 | - |
| Total: | 1,00,000 | 1,00,000 | - |
Loan Assignment and Co-lending Disclosures
For the year ended March 31, 2026, the company assigned 16,145 loan accounts amounting to Rs 1,58,048 lakhs and co-lent 1,286 loan accounts amounting to Rs 15,464 lakhs, all in respect of loans not in default. The weighted average maturity for assigned loans was 153 months with a weighted average holding period of 16 months, and a minimum retention requirement (MRR) of 10%. For co-lent loans, the weighted average maturity was 213 months with a weighted average holding period of 3 months and an MRR of 20%.
Promoter Change and Other Disclosures
During the period, a significant change in shareholding and control occurred. BCP Asia II Holdco VII Pte. Ltd. ("Acquirer") acquired 28,20,52,121 equity shares at Rs 425 per equity share, representing 64.14% of the Expanded Voting Share Capital, from the erstwhile promoter BCP Topco VII Pte. Ltd., pursuant to a Share Purchase Agreement dated July 25, 2025. Following a mandatory open offer to public shareholders — pursuant to which 7,36,706 equity shares were tendered and settled in cash on February 18, 2026 at an offer price of Rs 469.97 and applicable interest of Rs 2.71 per equity share — and the subsequent transfer of shares on February 25, 2026, the Acquirer held 64.90% of the equity share capital as on March 31, 2026. Additionally, AXDI LDII SPV 1 LTD acquired 44,139,236 equity shares at Rs 425 per equity share on February 26, 2026 and was classified as a public shareholder. The Acquirer was classified as the Promoter of the company with effect from February 26, 2026.
During the quarter ended March 31, 2026, the company allotted 19,07,398 equity shares of Rs 10 each pursuant to the exercise of employee stock options. The company also granted stock options under Employee Stock Options Plan 2025 on January 01, 2026, with employee benefits expense including a charge of Rs 1,346 lakhs for the quarter and year ended March 31, 2026 for options granted under this plan.
Management Commentary
Commenting on the performance, Mr. Rishi Anand, MD & CEO of Aadhar Housing Finance Ltd, said: "Aadhar Housing Finance has delivered strong performance in FY2026, marked by consistent growth and stable asset quality, while crossing the ₹30,000 crore AUM milestone and achieving its highest-ever quarterly disbursements in Q4 FY26. AUM stood at Rs 30,571 crore as of March 31, 2026, registering a year-on-year growth of 20%, while Profit after Tax for FY2026 grew by 22% YoY to Rs 1,108 crore. Our strategic 'Urban and Emerging' branch model continues to deliver strong outcomes, with the network expanding to over 626 branches, deepening our reach across underserved and high-potential markets. Demand remains largely end-user driven, led by first-time homebuyers in emerging markets, while witnessing encouraging traction in urban markets, reinforcing our balanced and diversified growth strategy. During the year, we also made focused investments in AI capabilities, which are beginning to reflect in improved turnaround times, stronger underwriting, and enhanced collections efficiency. Asset quality trends remain stable, supported by strong collection efficiency and disciplined underwriting, reflecting healthy borrower behaviour."
About Aadhar Housing Finance
Aadhar Housing Finance Ltd., established in 2010, is one of India's leading low-income housing finance companies dedicated to providing affordable housing solutions to Economically Weaker Section (EWS) and Low Income Group (LIG) customers, particularly in semi-urban and rural areas across India. With an average loan size of Rs. 11 lakhs, Aadhar operates with 626 branches across 22 states and union territories. It offers an array of mortgage-related products, including loans for buying and constructing residential properties, home improvement and extension, and micro loan against property.
Source: Company/INE883F01010/94f30fc5-69c3-476a-948d-2aad5ed387f2.pdf
Historical Stock Returns for Aadhar Housing Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.58% | +4.80% | +17.84% | +1.62% | +8.97% | +57.06% |
How might the new promoter BCP Asia II's strategic priorities differ from the previous ownership, and what impact could this have on Aadhar Housing Finance's expansion plans and lending focus in FY27?
With AI investments already improving turnaround times and underwriting, what measurable targets has management set for technology-driven operational efficiency gains over the next two to three years?
Given the declining ROE trend (from 16.9% in FY25 to 15.9% in FY26), what strategies is Aadhar Housing Finance considering to improve capital efficiency as its equity base continues to grow?
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