Aadhar Housing Finance Limited shareholders approved the adoption of its financial statements for FY26 and authorized the issuance of non-convertible debentures (NCDs) through private placement during its 36th Annual General Meeting (AGM) held on August 6, 2026. The meeting, conducted via Video Conference/Other Audio Visual Means (OAVM), also saw the re-appointment of director Mukesh Mehta and the approval of commission payments to independent directors, marking a routine but critical governance milestone for the housing finance company.

The proceedings were held in compliance with Regulation 30 and Regulation 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting commenced at 3:00 pm and concluded at 4:38 pm, with 98 members present in person or through representatives of corporate bodies, satisfying the quorum requirements under Section 103 of the Companies Act, 2013. Harshada Pathak, Company Secretary and Compliance Officer, facilitated the event, while Raj Vikash Verma, Chairperson, conducted the proceedings.

Key Resolutions Passed

Shareholders voted on five resolutions comprising ordinary and special business items. Voting was conducted via remote e-voting from August 3, 2026, to August 5, 2026, and through electronic voting systems during the meeting for those who had not cast remote votes. The final results, along with the Scrutinizer’s Report, are scheduled to be announced within two working days.

Leadership and Governance Updates

The meeting featured a transition in leadership roles, with Executive Vice Chairman Deo Shankar Tripathi welcoming Raj Vikash Verma as the new Chairperson and expressing appreciation for former Chairperson O.P. Bhatt. The Board members present included Independent Directors Sharmila A. Karve and Punita Kumar Sinha, Non-Executive Nominee Directors Amit Dixit, Mukesh Mehta, and Prateek Roongta, and Managing Director & CEO Rishi Anand.

Mr. Rishi Anand briefed shareholders on the company’s performance during the first quarter of the current financial year, FY27, while Deo Shankar Tripathi and Chief Financial Officer Rajesh Viswanathan addressed questions regarding operations and accounts for FY26. The Chairperson confirmed that there were no qualifications or adverse comments in the Statutory and Secretarial Auditors’ reports for the year ended March 31, 2026.

What This Means for Investors

The approval of the special resolution to issue NCDs provides Aadhar Housing Finance Limited with a crucial avenue for raising capital, which is typically utilized for funding housing loans or optimizing the debt mix. The re-appointment of Mukesh Mehta ensures continuity in board oversight, while the fresh appointment of M/s. N. M. Raiji & Co. as Joint Statutory Auditor for a three-year term reinforces the company’s commitment to robust financial reporting standards. Shareholders should monitor the upcoming disclosure of the voting results and the specific terms of the NCD issuance once finalized by the Board.

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. During the earnings call held on July 31, 2026, management reaffirmed its medium-term guidance of 20% AUM and profit growth for FY27, highlighting disciplined execution and a shift to cheque-realization-based disbursement recognition to enhance transparency.

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. CFO Rajesh Viswanathan noted that the exit cost of funds stood at 7.7% versus 8% a year before, while portfolio yield exit was 13.5%, resulting in an exit spread of 5.8%.

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 ₹2,359 crore. MD Rishi Anand stated that Q2 disbursements are expected to be upward of 23-25% as the carry-forward business clears.

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. Stage 2 NPAs improved by 40 basis points YoY to 3.3%. 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 covering over 550 districts. Management highlighted that emerging locations provide yields of 14-14.8%, compared to 11.5-12% in urban areas, helping sustain overall spreads above the 5.5% target.

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. Balance transfer out rates remained low at 5%, an improvement of 20 basis points YoY, supported by data-driven retention efforts.

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.

Management addressed liquidity concerns, noting that liquidity stood at ₹2,371 crore, representing approximately 10% of total borrowings of ₹20,000 crore, though the typical buffer is maintained at 7-8%. Regarding capital adequacy, Tier 1 stood at 42.9% and Tier 2 at 0.5%. CFO Viswanathan stated there are no current plans to return capital to shareholders, as the high capital buffer supports growth plans and mitigates operational risks per ICAAP methodology.

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. Management’s confidence in maintaining spreads above 5.5% despite competitive pressures is underpinned by the strategic tilt towards higher-yielding emerging markets.