Aadhar Housing Finance Limited has successfully implemented its Employee Stock Option Plan (ESOP) 2025 following overwhelming shareholder approval and has now granted stock options to eligible employees. The company's Board of Directors and Nomination and Remuneration Committee approved the grant of 1,30,87,700 employee stock options on December 18, 2025.

Shareholder Approval Foundation

The ESOP 2025 implementation follows strong shareholder support received through a postal ballot process concluded on November 17. The voting results demonstrated significant confidence in the company's employee incentive strategy:

Stock Option Grant Details

The Nomination and Remuneration Committee and Board of Directors approved the comprehensive stock option grant with specific terms and conditions:

Vesting and Exercise Framework

The granted options are subject to time and performance-based conditions for vesting, after which employees can exercise their options to acquire shares. The Nomination and Remuneration Committee has been authorized to determine eligible employees, vesting conditions, and exercise parameters. All options will vest according to the vesting schedule specified in individual grant letters.

Strategic Implementation

The exercise price of ₹425 per option was approved as the Nomination and Remuneration Committee granted the options within 30 days of receiving in-principle approval from recognized stock exchanges. The plan will be implemented directly by the company through the Board and Nomination and Remuneration Committee, ensuring proper governance and oversight.

Regulatory Compliance and Transparency

The stock option grant complies with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has made detailed terms available on its website and informed both BSE and NSE about the grant. The postal ballot process was conducted in accordance with the Companies Act, 2013, with Ms. Nupur Gadekar serving as scrutinizer to ensure transparency.

With the successful implementation of ESOP 2025, Aadhar Housing Finance has positioned itself to attract and retain key talent while aligning employee interests with shareholder value creation in the competitive housing finance sector.

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.