Asset Quality Improvement
Expected: Q3 FY26MEDIUM confidence
What: Gross NPA: 1.38%
Impact: 4 bps sequential improvement
“Gross NPA stood at 1.38%, a sequential improvement of 4 bps versus last quarter.”
Aadhar Housing Finance Ltd: Why Is It Outperforming Nifty 500?
ActiveAverageRe-Entry
In , Aadhar Housing Finance Ltd (Finance - Housing) is outperforming Nifty 500 with +7.0% relative strength. Fundamentals: Average.
Aadhar Housing Finance Ltd Key Facts
- PE Ratio
- 19.7x
- Market Cap
- ₹21,846 Cr
- PAT Growth YoY
- +27%
- Revenue Growth YoY
- +18%
- RS vs Nifty 500
- +7.0%
Emerging Opportunity
What's Happening
⏳Steady earner with flat PB — waiting for re-rate catalyst
👔Promoter stake down 0.6% this quarter
🌐FII stake increased 1.8% this quarter
🏛️DII reducing — stake down 1.2%
⚠️GNPA at 1.08% and deteriorating — asset quality concern
💰Trading 14% above estimated fair value
Earnings Acceleration Triggers
1. Asset Quality Improvement
Q3 FY26MEDIUM
2. Interest Cost Reduction Deleveraging
Q3 FY26MEDIUM
3. Tam Expansion Changing Consumption
OngoingMEDIUM
Key Risks
1. Requirement to pass on interest rate benefits to floating rate customers
LOW2. Impact of the new Labor Code on employee costs
LOW3. Specific city-level stress in textile and gems sectors (Tirupur, Surat)
LOWSector-Specific Signals
Total AUM₹28,790 Cr+20%
Gross NPA Ratio1.38%+2 bps
Net NPA Ratio1.0%+10 bps
Exit Cost of Funds7.74%
Key Numbers
PAT Growth YoY
+27%
Stable
Revenue YoY
+18%
Stable
GNPA
1.08%
Deteriorating
Price to Book
2.9
Current Price
₹501
Fundamental Score
46/100
Average
3Y PAT CAGR
+26%
Market Cap
21.8K Cr
Valuation
Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Aadhar Housing Finance Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Interest Cost Reduction Deleveraging
Expected: Q3 FY26MEDIUM confidence
What: Incremental Borrowing Cost: 7.5%
Impact: 40 bps lower than 9M average
“Our incremental borrowing cost for quarter 3 FY '26 stood at 7.5% and was 7.9% for the 9 months ended FY '26.”
Tam Expansion Changing Consumption
Expected: OngoingMEDIUM confidence
What: PMAY 2.0 Subsidy: 10,000+ customers
“The availability of interest subsidy under the PMAY 2.0 has improved affordability for the first-time homebuyers.”
PAT growth of 23% in Q3
HIGH confidence
What: PAT growth of 23% in Q3
“PAT stood at INR294 crores for quarter 3 FY '26... resulting in a growth of 23%.”
What Are the Key Risks for Aadhar Housing Finance Ltd?
Earnings deceleration risks from management commentary
Requirement to pass on interest rate benefits to floating rate customers
LOWTrigger: RBI repo rate cuts necessitate a downward adjustment in lending rates.
Impact: PAT impact: 15 bps rate drop
Management view: ALCO decided to drop rates by 15 bps from February 2026; impact managed via lower cost of funds.
Monitor: regulatory
Impact of the new Labor Code on employee costs
LOWTrigger: Implementation of new statutory requirements for past service costs.
Impact: PAT impact: ₹16 Cr
Management view: Shown as an exceptional item in line with ICAI guidelines.
Monitor: labor
Specific city-level stress in textile and gems sectors (Tirupur, Surat)
LOWTrigger: Tariff impacts on specific export-oriented industries.
Impact: PAT impact: Sub-1% AUM contribution
Management view: Monitoring city-level performance; currently seeing 1+ DPD and NPA drops in these areas.
Monitor: commodity
What Is Aadhar Housing Finance Ltd's Management Saying?
Key quotes from recent conference calls
“On AUM, we have always kept a guidance of 20%-22% and profit again about 18%-20%. [Previous AUM Growth guidance]”
“And we would like to see, we have seen it happen, and probably year end also, we will see a 40-50 bps that we will be able to target. [Previous Cost to Income guidance]”
“10,000-plus customers have already received first tranches of their interest subsidy under this renewed program. [Initiative: PMAY 2.0 Implementation]”
“30 branches of ours will keep coming in the lower category, which is deeper impact and the balance 20 will keep coming in the urban and emerging A locations. [Initiative: Branch Expansion (Emerging Markets)]”
What Did Aadhar Housing Finance Ltd Report This Quarter?
Headline numbers from the latest earnings call
PAT
₹294 Cr
YoY +23%QoQ +10.5%
Why: Growth was driven by steady lending momentum and a 20% increase in AUM, despite a ₹16 Cr impact from the new Labor Code.
PAT growth remains ahead of AUM growth, indicating margin stability and cost control.
Other Highlights
• AUM crossed ₹28,790 Cr, registering 20% Y-o-Y growth.
• 9M FY26 PAT reached ₹797 Cr, a 20% Y-o-Y increase.
• Added 10 new branches in Q3, taking the total network to 621 branches.
What Sector Metrics Matter for Aadhar Housing Finance Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total AUM
₹28,790 Cr
YoY +20%QoQ +4.5%
Why: Driven by steady lending momentum and branch expansion.
Gross NPA Ratio
1.38%
YoY +2 bpsQoQ -4 bps
Why: Sequential improvement driven by underwriting discipline and collection efficiency.
Net NPA Ratio
1.0%
YoY +10 bpsQoQ 0 bps
Why: Maintained at 1% despite slight Y-o-Y increase in gross numbers.
Exit Cost of Funds
7.74%
QoQ -16 bps
Why: Benefit from lower incremental borrowing costs (7.5% in Q3).
Portfolio Yield Exit
13.71%
QoQ -9 bps
Why: Slight compression as management prepares to pass on rate cuts.
Exit Spread
5.97%
YoY +4 bpsQoQ +7 bps
Why: Improvement due to cost of funds falling faster than yields.
Capital Adequacy Ratio
44.1%
QoQ -20 bps
Why: Remains highly capitalized following the May capital raise.
9M Disbursements
₹6,469 Cr
YoY +15%
Why: Steady lending momentum across core segments.
Balance Transfer Out
5.6%
YoY -50 bpsQoQ +20 bps
Why: Improvement on Y-o-Y basis due to focused retention efforts.
Average Ticket Size
₹10.7 Lakh
QoQ +₹0.2 Lakh
Why: Consistent focus on low-income and affordable segments.
What Is Aadhar Housing Finance Ltd's Management Guidance?
Forward-looking targets from management for FY26 Exit
OPM Guidance
5.8–5.8%
Margin Outlook
REAFFIRMED
Volume
REAFFIRMED
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
NPA Target: 1.15% on AUM → 1.10% to 1.15% on AUM
How Fast Is Aadhar Housing Finance Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +18% | +22% | Stable |
| PAT (Net Profit) | +27% | +26% | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Finance - Housing Stocks Beating Nifty 500
Frequently Asked Questions: Aadhar Housing Finance Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Aadhar Housing Finance Ltd's latest quarterly results?
Aadhar Housing Finance Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +26.9% (stable)
- Revenue Growth YoY: +18.2%
- Net Interest Margin: 41.00%
- Gross NPA: 1.08%
Is Aadhar Housing Finance Ltd's profit growing or declining?
Aadhar Housing Finance Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +26.9% (latest quarter)
- PAT Growth QoQ: +10.7% (sequential)
- 3-Year PAT CAGR: +26.2%
- Trend: Stable — consistent growth pattern
What is Aadhar Housing Finance Ltd's revenue growth trend?
Aadhar Housing Finance Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +18.2%
- Revenue Growth QoQ: +4.5% (sequential)
- 3-Year Revenue CAGR: +21.6%
What is Aadhar Housing Finance Ltd's asset quality trend?
Aadhar Housing Finance Ltd's asset quality trend is deteriorating.
- Gross NPA: 1.08%
- Net NPA: 0.80%
- GNPA Change YoY: +0.0% bps
What is Aadhar Housing Finance Ltd's 3-year profit and revenue CAGR?
Aadhar Housing Finance Ltd's long-term compounding rates
- 3-Year Profit CAGR: +26.2%
- 3-Year Revenue CAGR: +21.6%
Is Aadhar Housing Finance Ltd's growth accelerating or decelerating?
Aadhar Housing Finance Ltd's earnings growth is stable with positive momentum on a sequential basis.
- YoY Acceleration: +9.3% bps
- Sequential Acceleration: +5.1% bps
- Margin Warning: Operating margins are under pressure
What is Aadhar Housing Finance Ltd's trailing twelve month (TTM) performance?
Aadhar Housing Finance Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹1,000 Cr
- TTM PAT Growth: +20.1% YoY
- TTM Revenue: ₹4,000 Cr
- TTM Revenue Growth: +18.2% YoY
Is Aadhar Housing Finance Ltd overvalued or undervalued?
Aadhar Housing Finance Ltd appears overvalued based on our fair value analysis.
- Valuation Signal: Overvalued
- Current PE: 19.7x
- Price-to-Book: 2.9x
What is Aadhar Housing Finance Ltd's current PE ratio?
Aadhar Housing Finance Ltd's current PE ratio is 19.7x.
- Current PE: 19.7x
- Market Cap: 21.8K Cr
How does Aadhar Housing Finance Ltd's valuation compare to its history?
Aadhar Housing Finance Ltd's current PE is 19.7x.
- Current PE: 19.7x
- Valuation Assessment: Overvalued
What is Aadhar Housing Finance Ltd's price-to-book ratio?
Aadhar Housing Finance Ltd's price-to-book ratio is 2.9x.
- Price-to-Book (P/B): 2.9x
- Book Value per Share: ₹173
- Current Price: ₹501
Is Aadhar Housing Finance Ltd a fundamentally strong company?
Aadhar Housing Finance Ltd is rated Average with a fundamental score of 46.12/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +26.9% (20% weight)
- PAT Growth QoQ: +10.7% (15% weight)
- Earnings trend: stable (5% weight)
Is Aadhar Housing Finance Ltd debt free?
Aadhar Housing Finance Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹19,000 Cr
What is Aadhar Housing Finance Ltd's return on equity (ROE) and ROCE?
Aadhar Housing Finance Ltd's return ratios over recent years
- FY2024: ROE 18.0%
- FY2025: ROE 17.0%
- FY2026: ROE 16.0%
Is Aadhar Housing Finance Ltd's cash flow positive?
Aadhar Housing Finance Ltd's operating cash flow is negative (FY2026).
- Cash from Operations (CFO): ₹-3,000 Cr
- Free Cash Flow (FCF): ₹-2,000 Cr
- CFO/PAT Ratio: -256% (weak cash conversion)
What is Aadhar Housing Finance Ltd's dividend yield?
Aadhar Housing Finance Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹501
Who holds Aadhar Housing Finance Ltd shares — promoters, FII, DII?
Aadhar Housing Finance Ltd's shareholding pattern (Mar 2026)
- Promoters: 64.9%
- FII (Foreign): 6.1%
- DII (Domestic): 9.2%
- Public: 19.8%
Is promoter holding increasing or decreasing in Aadhar Housing Finance Ltd?
Aadhar Housing Finance Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 64.9% (Mar 2026)
- Previous Quarter: 75.2% (Dec 2025)
- Change: -10.29% (decreasing — worth monitoring)
How long has Aadhar Housing Finance Ltd been outperforming Nifty 500?
Aadhar Housing Finance Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Is Aadhar Housing Finance Ltd a new momentum entry or an established outperformer?
Aadhar Housing Finance Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Aadhar Housing Finance Ltd?
Aadhar Housing Finance Ltd has 4 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement — Driven by underwriting discipline and field-level collection efforts.
- Interest Cost Reduction Deleveraging — Benefit from RBI repo rate cuts and diversified borrowing mix.
- Tam Expansion Changing Consumption — Government subsidies are driving demand in the affordable housing segment.
- PAT growth of 23% in Q3 — Driven by a combination of AUM growth and stable spreads despite interest rate volatility.
What are the key risks in Aadhar Housing Finance Ltd?
Aadhar Housing Finance Ltd has 3 key risks worth monitoring
- [LOW] Requirement to pass on interest rate benefits to floating rate customers — RBI repo rate cuts necessitate a downward adjustment in lending rates.
- [LOW] Impact of the new Labor Code on employee costs — Implementation of new statutory requirements for past service costs.
- [LOW] Specific city-level stress in textile and gems sectors (Tirupur, Surat) — Tariff impacts on specific export-oriented industries.
What did Aadhar Housing Finance Ltd's management say in the latest earnings call?
In Q3 FY26, Aadhar Housing Finance Ltd's management highlighted
- "On AUM, we have always kept a guidance of 20%-22% and profit again about 18%-20%. [Previous AUM Growth guidance]"
- "And we would like to see, we have seen it happen, and probably year end also, we will see a 40-50 bps that we will be able to target. [Previous Cost ..."
- "10,000-plus customers have already received first tranches of their interest subsidy under this renewed program. [Initiative: PMAY 2.0 Implementation..."
What is Aadhar Housing Finance Ltd's management guidance for growth?
Aadhar Housing Finance Ltd's management has provided the following forward guidance for FY26 Exit
- Revenue outlook: Not Given
- OPM guidance: 5.8–5.8%
- Capex plan: Not Given for Branch expansion
- Management tone: bullish
- Milestone: [REAFFIRMED] NPA Target: 1.15% on AUM → 1.10% to 1.15% on AUM
What sector-specific metrics matter most for Aadhar Housing Finance Ltd?
Aadhar Housing Finance Ltd's most important sub-sector-specific KPIs from the latest concall
- Total AUM: ₹28,790 Cr (YoY +20%) (QoQ +4.5%) — Driven by steady lending momentum and branch expansion.
- Gross NPA Ratio: 1.38% (YoY +2 bps) (QoQ -4 bps) — Sequential improvement driven by underwriting discipline and collection efficiency.
- Net NPA Ratio: 1.0% (YoY +10 bps) (QoQ 0 bps) — Maintained at 1% despite slight Y-o-Y increase in gross numbers.
- Exit Cost of Funds: 7.74% (QoQ -16 bps) — Benefit from lower incremental borrowing costs (7.5% in Q3).
- Portfolio Yield Exit: 13.71% (QoQ -9 bps) — Slight compression as management prepares to pass on rate cuts.
- Exit Spread: 5.97% (YoY +4 bps) (QoQ +7 bps) — Improvement due to cost of funds falling faster than yields.
Is Aadhar Housing Finance Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Aadhar Housing Finance Ltd may be worth studying
- Earnings growing at +26.9% YoY
- Strong returns — ROE 16.0%
What is the investment thesis for Aadhar Housing Finance Ltd?
Aadhar Housing Finance Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +18.2% YoY
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Margins under pressure
- Appears overvalued
- Key risk: Requirement to pass on interest rate benefits to floating rate customers
What is the future outlook for Aadhar Housing Finance Ltd?
Aadhar Housing Finance Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Valuation: Overvalued
- Key Catalyst: Asset Quality Improvement
- Key Risk: Requirement to pass on interest rate benefits to floating rate customers
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.