An investment vehicle backed by Abu Dhabi sovereign investor ADQ and partly owned by Sheikh Tahnoon bin Zayed al-Nahyan is in advanced talks to acquire a significant minority stake in Aadhar Housing Finance , India's largest affordable housing finance company.

Potential Deal Details

The ADQ-backed vehicle is reportedly in discussions to purchase a 10-12% stake in Aadhar Housing Finance for an estimated $200-225 million through a secondary share sale. This development comes on the heels of Blackstone's larger $2 billion capital commitment to the company.

Blackstone's Continued Involvement

Blackstone, which has been a major shareholder in Aadhar Housing Finance since 2019, is transferring most of its three-fourths shareholding to new funds through a continuation vehicle structure. Additionally, Blackstone is making an open offer to acquire a 25.82% stake from public shareholders at Rs 469.97 per share.

Aadhar Housing Finance's Performance

Aadhar Housing Finance has shown strong financial performance:

• 19% increase in net profit to Rs 237.00 crore in the first quarter
• 12.11% stock appreciation in the past month
• Assets under management have grown to $3.00 billion under Blackstone's six-year ownership

Industry Outlook

The affordable housing finance industry in India is poised for significant growth, with expectations of a 17-18% CAGR over the next five years.

Recent Financial Results

According to the latest LODR (Listing Obligations and Disclosure Requirements) filing, Aadhar Housing Finance Limited has published its unaudited standalone and consolidated financial results for the quarter ended June 30. The results were published in Financial Express (English), Vishwavani (Bangalore edition), and Navshakti (Mumbai edition) on July 27.

This potential investment by the ADQ-backed vehicle, if materialized, could further strengthen Aadhar Housing Finance's position in the rapidly growing affordable housing finance sector in India.

Aadhar Housing Finance Limited , a leading player in India's affordable housing finance sector, has announced strong financial results for the first quarter of fiscal year 2026, demonstrating robust growth across key metrics.

Financial Highlights

• Assets Under Management (AUM) grew by 22% year-over-year to ₹26,524.00 crore
• Disbursements increased by 32% to ₹1,979.00 crore
• Profit After Tax (PAT) rose by 19% to ₹237.00 crore
• Net worth stood at ₹6,616.00 crore, up 17% from the previous year

Operational Performance

The company's performance in Q1 FY26 reflects its strong position in the affordable housing segment:

• Total number of loan accounts reached over 3,06,000
• Gross Non-Performing Assets (GNPA) stood at 1.34%, a slight increase from 1.31% in the same quarter last year
• Return on Assets (ROA) was 4.0%, compared to 4.1% in Q1 FY25
• Return on Equity (ROE) was 14.7%, down from 15.9% in the previous year

Management Commentary

Rishi Anand, MD & CEO of Aadhar Housing Finance Ltd, commented on the results: "We concluded the first quarter of FY26 on a strong note with an AUM of ₹26,524.00 crore, reflecting a YoY growth of 22%. Disbursements remained healthy at ₹1,979.00 crore, up 32% YoY, supported by sustained demand in the affordable housing segment."

Key Developments

• The company received a rating upgrade from CARE for its long-term bank facilities and non-convertible debentures to CARE AA+ from AA, with a stable outlook
• Aadhar Housing Finance expanded its presence by entering Assam with a new branch in Guwahati
• The Reserve Bank of India's recent repo rate cut to 5.50% is expected to enhance affordability for first-time and low-income homebuyers

Market Position

Aadhar Housing Finance continues to strengthen its leadership in the affordable housing segment:

• Operates across 22 states and union territories
• Maintains a network of 591 branches
• Serves over 3,06,000 customers

The company's focus on low-income families, particularly in semi-urban and rural areas, positions it well to capitalize on the growing demand for affordable housing in India.

Outlook

With a robust operational foundation and customer-centric strategy, Aadhar Housing Finance remains well-positioned to continue its growth trajectory. The company is optimistic about the sector's momentum, supported by proactive government measures and rising demand in the affordable housing segment.

As India's housing finance market continues to evolve, Aadhar Housing Finance's strong Q1 FY26 performance demonstrates its ability to navigate the competitive landscape while enabling more families to realize their dream of home ownership.