Aadhar Housing Finance Limited has reported robust growth and strong asset quality for the second quarter of fiscal year 2026, demonstrating resilience in the affordable housing finance segment.

Key Financial Highlights

• Assets Under Management (AUM) reached Rs. 27,554.00 crores as of September 30, 2025, marking a 21% year-on-year growth.
• Disbursements stood at Rs. 4,089.00 crores for the first half, representing a 16% increase.
• Profit after tax for H1 FY26 was Rs. 504.00 crores, up 18% from Rs. 428.00 crores in H1 FY25.
• Gross NPAs remained well-controlled at 1.42%.
• Collection efficiency maintained above 99%.

Asset Quality and Portfolio Composition

The company maintained strong asset quality, with Stage-II assets improving by approximately 20 basis points year-on-year. The portfolio composition remains balanced:

• Portfolio yield exit stood at 13.8% with exit spread at 5.9%

Expansion and Market Presence

Aadhar Housing Finance continues to expand its network:

• Added 20 new branches during the quarter
• Total branch count reached 611 across 22 states
• Improved balance transfer out to 5.4% from the previous year

Management Outlook

The management expressed confidence in meeting growth guidance for the financial year, citing favorable policy reforms and GST 2.0 framework benefits for the affordable housing segment.

Recent Corporate Development

In a recent corporate filing, Aadhar Housing Finance disclosed:

• Damages of Rs. 14,79,000 levied by Employee Provident Fund Authority
• The penalty is for non-compliance with section 14B of Employees Provident Fund and Miscellaneous Provisions Act, 1952
• The company attributes the delay to technical issues arising from non-seeding and/or mismatch of employees' Aadhaar details with their Universal Account Numbers (UANs) in the EPFO portal

While this regulatory penalty is noteworthy, it appears to be a relatively minor issue in the context of the company's overall financial performance and growth trajectory.

Aadhar Housing Finance's strong performance in Q2 FY26 underscores its robust position in the affordable housing finance sector. The company's focus on maintaining asset quality while pursuing growth, coupled with its expanding network and positive management outlook, suggests a promising trajectory for the remainder of the fiscal year.

Aadhar Housing Finance Limited , a prominent player in the affordable housing finance sector, has been levied a penalty of Rs 14.79 lakh by the Regional Provident Fund Commissioner for non-compliance with the Employees Provident Fund and Miscellaneous Provisions Act, 1952.

Penalty Details and Cause

The penalty was imposed due to delays in Provident Fund (PF) contributions, which the company attributes to technical issues related to incomplete Aadhar seeding by employees. The delay occurred because of non-seeding and mismatch of employees' Aadhaar details with their Universal Account Numbers (UANs) in the EPFO portal, which prevented timely deposit of contributions.

Discovery and Resolution

Aadhar Housing Finance learned about the damages during a meeting with Provident Fund authority officials. The company has since taken corrective measures:

• Completed the Aadhaar verification process
• Deposited the pending contributions

Financial Impact

According to the company, there is no material impact on its financials, operations, or other activities beyond the penalty amount of Rs 14,78,996. This suggests that the issue is isolated and does not indicate broader financial concerns for Aadhar Housing Finance.

Regulatory Compliance

This incident highlights the importance of maintaining strict compliance with regulatory requirements, particularly in areas such as employee benefits and statutory contributions. It also underscores the critical role of proper documentation and data management in avoiding such penalties.

Looking Forward

While the penalty is relatively small compared to Aadhar Housing Finance's overall operations, it serves as a reminder of the need for robust systems and processes to ensure timely compliance with statutory obligations. The company's prompt action in resolving the issue and depositing the pending contributions demonstrates its commitment to regulatory compliance.

As Aadhar Housing Finance continues to operate in the affordable housing finance sector, maintaining strong regulatory compliance will be crucial for its long-term success and reputation in the market.