Will Lower Funding Costs Propel Aadhar Housing’s Growth Momentum in FY26?
About Aadhar Housing Finance
Aadhar Housing Finance Ltd is one of India’s largest affordable housing finance companies catering to the low-income and economically weaker segments. The firm benefits from strong distribution reach, digital underwriting, and access to diversified funding channels.
Q2 FY26 results underline improving spreads due to lower cost of funds and stable credit quality, positioning Aadhar Housing for sustained profitability.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | QoQ |
|---|---|---|---|
| AUM | ₹20,580 Cr | +21% | +5% |
| NII | ₹620 Cr | +17% | +6% |
| NIM | 5.2% | +40 bps | Stable |
| PAT | ₹280 Cr | +18% | +4% |
AUM ₹20,580 Cr — driven by disbursement growth of 18% YoY.
NIM 5.2% — aided by declining cost of funds and better yield mix.
PAT ₹280 Cr — reflects improving operating leverage and stable credit cost.
Investors tracking housing finance trends may refer to Nifty Options Signal.
Peer Comparison
| Company | AUM Growth | NIM |
|---|---|---|
| Aadhar Housing | 21% | 5.2% |
| Home First | 20% | 5.0% |
| Aavas Financiers | 17% | 5.1% |
Strengths & Weaknesses
Strengths
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Weaknesses
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Opportunities & Threats
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Valuation & Investment View
- Short-term: Positive momentum on spread recovery.
- Medium-term: Strong AUM and disbursement growth visibility.
- Long-term: Sustainable ROA improvement through cost efficiency.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, views Aadhar Housing as a steady compounder in the affordable housing space with improving spreads and AUM visibility. Read more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
