Aadhar Housing Finance (AADHARHFC) Q2 24/25 earnings summary

Executive summary

• Achieved 21% YoY AUM growth to INR 22,817 crore as of September 2024, maintaining a 100% secured, retail-focused book with no corporate or developer exposure and a pan-India presence across 21 states and UTs.

• PAT rose 24% YoY to INR 428 crore for H1 FY25, with ROA at 4.2% and ROE at 16.5% post-IPO proceeds.

• Maintained strong asset quality with GNPA at 1.29%-1.31%, improved by up to 15 bps YoY, and collection efficiency above 99%.

• Expanded distribution to 545 branches across 21 states, serving over 277,000 loan accounts and entering new geographies.

• Disbursements for H1 FY25 were INR 35,323 Mn, up 18% YoY, with Q1 FY25 at INR 1,497 crore and Q2 FY25 up 18% YoY.

Financial highlights

• Total income rose 21% YoY to INR 14,774 Mn in H1 FY25; net interest margin up 22% YoY to INR 9,152 Mn.

• Cost-to-income ratio improved by up to 100 bps YoY to 35.4%-36.7%.

• Write-offs for Q1 were INR 7-9 crore; credit cost guidance for FY25 is 27-28 bps.

• Incremental yield on loans at 13.5%-13.6%; incremental cost of funds at 8.2%-8.4%.

• Net worth reached INR 5,872 crore as of September 2024, including IPO proceeds.

Outlook and guidance

• FY25 AUM growth guidance is 20%-23%, with disbursement growth expected at 18%-20%.

• Three-year AUM growth outlook is 20%-21% CAGR; housing finance market expected to grow at 13%-15% CAGR through FY26.

• Spreads expected to exit FY25 at 5.8%-5.9%, with a long-term range of 5.6%-5.75%.

• Cost-to-income ratio targeted to drop by 75-100 bps in FY25.

• Continued focus on underserved low-income segments and leveraging technology for efficiency.