Aadhar Housing Finance (AADHARHFC) Q3 25/26 earnings summary

Executive summary

• Achieved 20% YoY growth in AUM to INR 28,790 crore and PAT to INR 797 crore for 9M FY26, with disbursements up 15% YoY to INR 6,469 crore.

• RBI reduced policy repo rate by 25 bps in December 2025, totaling 125 bps cut in 2025, boosting home affordability and sector momentum.

• GST 2.0 and lower construction input costs improved project viability and demand in affordable housing.

• Focused on low-income housing, with 100% secured retail book and 62% of AUM to EWS/LIG customers.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed by the Board and auditors, with no material misstatements noted.

Financial highlights

• Gross NPA at 1.38% as of Dec 31, 2025, improving 4 bps sequentially; collection efficiency above 99%.

• Cost-to-income ratio for 9M FY26 at 34.1%-35.4%, improved by up to 50 bps YoY.

• Portfolio yield exit at 13.71%-13.84%; exit cost of funds at 7.74%-8.01%; exit spread at 5.84%-5.97%.

• ROA and ROE for Q3 FY26 at 4.6% and 16.5%, respectively; return on equity for 9M FY26 at 15.37%.

• AUM as of December 31, 2025: ₹287,899.6 million, up from ₹239,759.4 million YoY.

Outlook and guidance

• Confident of sustaining 20%+ AUM growth and 16-17% disbursement growth for FY26 and similar trends for FY27.

• Expect GNPA to end FY26 between 1.10%-1.15%; credit cost guidance maintained at 25-26 bps.

• Margin stability expected despite rate cuts; 15 bps rate reduction to be passed to customers from Feb 2026.

• No deviations or variations in the utilization of IPO or NCD proceeds; all funds have been used as per stated objectives.

• The company continues to monitor regulatory changes, especially regarding new labour codes, and will reassess impacts as rules are finalized.