Aadhar Housing Finance (AADHARHFC) Q1 24/25 earnings summary

Executive summary

• AUM reached ₹21,726 crore (₹217,263 Mn), up 21% YoY, with 100% retail secured book and no corporate/developer exposure; loan accounts rose 15% to over 2.74 lakh.

• Focused on low-income housing finance, with 81% of AUM in EWS/LIG segments and 57% of customers salaried; average ticket size at ₹10 lakh.

• Robust digital infrastructure, fintech integrations, RPA, and machine learning-based credit risk scorecards enhance efficiency.

• Distribution network expanded to 536 branches across 21 states, including entry into Himachal Pradesh.

• IPO completed in May 2024, raising ₹1,000 crore for future growth; Dr. Punita Kumar Sinha appointed as independent director.

Financial highlights

• PAT for Q1 FY25 was ₹200 crore (₹2,001 Mn), up 37% YoY; ROE at 15.9% post-IPO proceeds.

• Gross NPA improved to 1.31% (down 15 bps YoY); collection efficiency above 99%.

• NIM at 8.9%, up 30 bps YoY; ROA at 4.1% (+60 bps YoY).

• Cost-to-income ratio improved by 80 bps YoY to 36.7%.

• Revenue from operations for Q1 FY25 was ₹69,678 lakh, up from ₹57,801 lakh in Q1 FY24.

Outlook and guidance

• Disbursement growth expected at 18%-20%, with AUM growth guidance of 20%-23% for FY25; long-term AUM growth guidance of 20%-21% CAGR over the next three years.

• Credit cost for FY25 projected at 27-28 bps, inclusive of non-housing and LAP.

• Housing finance market expected to grow at 13-15% CAGR between FY23 and FY26, with strong demand from low-income segments.

• Continued focus on expanding branch network and digital transformation to drive growth and efficiency.

• Management expects continued growth, supported by government housing initiatives and expansion into new geographies.