Aadhar Housing Finance Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Aadhar Housing Finance Ltd filed with BSE on 04 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Aadhar Housing Finance reported AUM of Rs 31,364 crores as of June 30, 2026, up 18% year-on-year, and PAT of Rs 282 crores for Q1 FY27, up 19% year-on-year. Management transitioned disbursement recognition to a cheque clearance basis, which reduced reported disbursement growth to 19% on a like-to-like basis, with the full effect flowing into Q2. Asset quality metrics showed gross NPA at 1.31%, an improvement of 3 bps year-on-year, while spreads held at 5.8% despite a 15 bps RPLR cut in February 2026.
Numbers mentioned
AUM: Rs 31,364 crores (as of June 30, 2026)
p. 3
“Our AUM as of 30th June 2026, stood at INR31,364 crores, a growth of 18% Y-o-Y.”
Rishi Anand, page 3 of the filed PDF · View the filing
Disbursement (cheque handover basis): Rs 2,359 crores (Q1 FY27)
p. 3
“Disbursement on check handover stands at INR2,359 crores, which is on a like-to-like basis growth of 19% Yo-Y.”
Rishi Anand, page 3 of the filed PDF · View the filing
Spread: 5.8% (as of June 2026)
p. 4
“Even after a 15 bps reduction in our RPLR effective February 2026, our spreads have held at 5.8% as on June 26.”
Rishi Anand, page 4 of the filed PDF · View the filing
Gross NPA: 1.31% (Q1 FY27)
p. 4
“Gross NPA stood at 1.31%, an improvement of 3 bps on Y-oY basis.”
Rishi Anand, page 4 of the filed PDF · View the filing
Stage 2 assets: 3.3% (Q1 FY27)
p. 4
“Stage 2 comes in at 3.3%, continuing to show an improvement of 40 bps on a Y-o-Y basis.”
Rishi Anand, page 4 of the filed PDF · View the filing
Collection efficiency: 99% (Q1 FY27)
p. 4
“Collection efficiency remains strong at 99%.”
Rishi Anand, page 4 of the filed PDF · View the filing
Total borrowings: Rs 20,000 crores (as of June 30, 2026)
p. 5
“Our overall borrowings as on 30th June '26, stood at INR20,000 crores compared to INR16,876 crores a year before this.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
Cost of funds (exit): 7.7% (as of June 30, 2026)
p. 5
“The exit cost of funds as at 30th June 2026, stood at 7.7% versus 8% a year before.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
Cost-to-income ratio: 36.3% (Q1 FY27)
p. 5
“Our cost-to-income ratio for quarter 1 FY27 stood at 36.3%.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
Capital adequacy ratio (Tier 1): 42.9% (Q1 FY27)
p. 5
“Capital adequacy ratio for Q1 FY27 stood at 42.9% for Tier 1 and 0.5% for Tier 2.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
PAT: Rs 282 crores (Q1 FY27)
p. 5
“Our Q1 FY27 PAT stood at INR282 crores compared to INR237 crores in Q1 FY26, resulting in a growth of 19%.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
ROA: 4% (Q1 FY27)
p. 5
“Q1 '27 ROA and ROE is 4% and 14.7%, respectively.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
Number of branches: 628 (as of June 2026)
p. 4
“our network stands at 628 branches across 22 states and covering 550 plus districts, in line with our calibrated, need-based expansion approach.”
Rishi Anand, page 4 of the filed PDF · View the filing
Liquidity: Rs 2,371 crores (Q1 FY27)
p. 5
“Liquidity as we ended quarter 1 FY27 stood at INR2,371 crores.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
1+ DPD: 7% (as of June 2026)
p. 11
“1 plus DPD is 7%.”
Rajesh Viswanathan, page 11 of the filed PDF · View the filing
BT out rate: 5% (Q1 FY27)
p. 11
“And in terms of BT out, it is 5%, which is an improvement of approximately 20 bps over the same period last year.”
Rajesh Viswanathan, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM growth — 20% · FY27
stated firmly by Rishi Anand
p. 3
“As we move ahead, we are firm and stick with our mediumterm guidance of 20% AUM growth, 20% profit growth, 17% to 18% disbursement growth for the full year.”
Rishi Anand, page 3 of the filed PDF · View the filing
Disbursement growth — upward of 20% · next 3 quarters
stated firmly by Rishi Anand
p. 3
“Next 3 quarters, we have targeted disbursement growth of upward of 20%.”
Rishi Anand, page 3 of the filed PDF · View the filing
Spread — upward of 5.5%
stated firmly by Rishi Anand
p. 7
“We have always guided the market that at any given point in time, we will be a company which will be as a company with a spread of 5.5% upward.”
Rishi Anand, page 7 of the filed PDF · View the filing
Full year NPA level — 1.1% level · FY27 year-end
stated conditionally by Rajesh Viswanathan
p. 8
“I think we are fairly confident before we look at last year, 1.34% was headline NPA, and we ended the year at 1.08% to 1.1%. I think we are quite confident of holding the 1.1% level as we end”
Rajesh Viswanathan, page 8 of the filed PDF · View the filing
Credit cost — 23 bps to 25 bps · full year
stated conditionally by Rajesh Viswanathan
p. 9
“And we are quite confident of pulling it back to 1.1% level as we end the fiscal and with the credit cost charge to about 23 bps to 25 bps on the P&L.”
Rajesh Viswanathan, page 9 of the filed PDF · View the filing
Cost to income ratio — 30 bps to 40 bps annually · yearly
stated as an aspiration by Rajesh Viswanathan
p. 11
“I think from expenses cost to income, we believe that we still have the ability to drop cost to income by approximately 30 bps to 40 bps on a yearly basis.”
Rajesh Viswanathan, page 11 of the filed PDF · View the filing
Branch openings — 45 to 50 branches · FY27
stated firmly by Rishi Anand
p. 13
“we stand by our numbers of 45 to 50 branches.”
Rishi Anand, page 13 of the filed PDF · View the filing
Non-home loan mix normalization — 70-30 home to non-home · quarter 3
stated conditionally by Rishi Anand
p. 13
“See, ideally, if you ask my view, I should ideally wait for the current quarter to see how the crisis is going to stabilize. But from a quarter 3 perspective, it should be back to normalcy.”
Rishi Anand, page 13 of the filed PDF · View the filing
ROE — around 17% · 2 years
stated as an aspiration by Rajesh Viswanathan
p. 15
“I think ROEs, if you look at the full year ROE of a couple of years down the line, we would be hitting around 17% ROE, which I think is the plan that we are working on.”
Rajesh Viswanathan, page 15 of the filed PDF · View the filing
PAT growth — 20% · FY27
stated firmly by Rajesh Viswanathan
p. 15
“we are reassuring on our nearterm guidance of AUM growth of 20%, next 3 quarter disbursement growth in excess of 20% and profit growth of 20%.”
Rajesh Viswanathan, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed yield stability to geographic diversification limits and the urban-emerging branch mix strategy.
Answered by Rishi Anand
Asked by Renish: How is the company managing to sustain asset yields despite a PLR cut and competition?
p. 6
“Then our second strategy on urban and emerging is helping us maintain the yields.”
Rishi Anand, page 6 of the filed PDF · View the filing
Management said July disbursement was close to Rs 900 crores and Q2 would substantially cover the shortfall from Q1.
Answered by Rishi Anand
Asked by Renish: What was the July disbursement number and how will Q2 compensate for the recognition change impact?
p. 7
“quarter 2 will substantially cover up for the short fall of quarter 1.”
Rishi Anand, page 7 of the filed PDF · View the filing
Management said the impact was minor, limited to a 2-3 day timing difference.
Answered by Rajesh Viswanathan
Asked by Kunal Shah: Did the cheque realization change impact interest income recognition?
p. 8
“I think we will also start recognizing interest only when the cheque gets cleared. So, to that extent, there will be a 2- 3 day impact, it will not be material.”
Rajesh Viswanathan, page 8 of the filed PDF · View the filing
Management attributed it to the annual increment cycle in Q1.
Answered by Rajesh Viswanathan
Asked by Kunal Shah: What drove the sequential rise in employee costs?
p. 8
“In terms of increase between sequential quarter on employee cost, that is mainly because of the annual increment, which is typically in the range of approximately 10% to 12%, which would have come in the quarter 1 of the current year.”
Rajesh Viswanathan, page 8 of the filed PDF · View the filing
Management said liquidity buffer is typically 7-8% of borrowings and cost of funds has been stable with limited near-term upside risk seen.
Answered by Rajesh Viswanathan
Asked by Shreya: How much liquidity buffer does the company maintain and how might cost of funds move?
p. 9
“But throughout the quarter, we try to keep a liquidity of anywhere between 7% to 8%.”
Rajesh Viswanathan, page 9 of the filed PDF · View the filing
Management guided to roughly 6-7 bps of annual improvement in cost to AUM.
Answered by Rajesh Viswanathan
Asked by Nidhesh: How is cost to AUM expected to trend over the next 2-3 years?
p. 11
“But as of now, we are holding in a cost to AUM range of about 6 bps to 7 bps on a yearly basis and cost-to-income of around 30 to 40 bps.”
Rajesh Viswanathan, page 11 of the filed PDF · View the filing
Management said incremental yields remained flat and the urban-emerging mix should keep them steady or improving.
Answered by Rishi Anand
Asked by Sonal Gandhi: What is driving incremental yields and how are they expected to move?
p. 12
“So incremental yields, as you would have seen, have remained flat. And I don't see any reason why the incremental yield should drop at any stage.”
Rishi Anand, page 12 of the filed PDF · View the filing
Management said there is no current plan to return capital, citing growth needs and operational risk buffers.
Answered by Rajesh Viswanathan
Asked by Karan Gupta: Are there any plans to return capital to shareholders given high capital adequacy?
p. 14
“I think there's no current plan of handing it back to shareholders as of now.”
Rajesh Viswanathan, page 14 of the filed PDF · View the filing
Management said branch openings were delayed due to timing of agreements and proposals, and reaffirmed the annual branch target.
Answered by Rishi Anand
Asked by Akhil: Why were fewer branches opened in the last two quarters and is the branch-opening guidance intact?
p. 13
“Akhil, yes, we are completely on track.”
Rishi Anand, page 13 of the filed PDF · View the filing
Management credited a combination of retention team efforts, data analytics-based customer segmentation and multi-year initiatives.
Answered by Rishi Anand
Asked by Parth: What has driven the improvement in the BT out rate?
p. 15
“These teams have been completely supported by giving them delegation on what are the yields they can drop for a consumer”
Rishi Anand, page 15 of the filed PDF · View the filing
Risks flagged
Geopolitical uncertainty around West Asia affecting fuel-dependent trade, travel and NRI-linked segments
p. 4
“The ongoing geopolitical uncertainty around the West Asia situation and its resulting impact on segments like fuel-dependent trade and travel and the monsoon outlook given it's bearing on the rural and semi-urban cash flows.”
Rishi Anand, page 4 of the filed PDF · View the filing
Monsoon outlook affecting rural and semi-urban cash flows
p. 4
“the monsoon outlook given it's bearing on the rural and semi-urban cash flows.”
Rishi Anand, page 4 of the filed PDF · View the filing
Seasonal rise in credit costs and NPAs in Q1
p. 8
“this has been a phenomenon that the first quarter credit cost remains between 40 to 45 bps.”
Rajesh Viswanathan, page 8 of the filed PDF · View the filing
Potential future changes in risk weights impacting capital adequacy
p. 14
“in case in future, there is any changes in the risk weights, this can impact our capital adequacy.”
Rajesh Viswanathan, page 14 of the filed PDF · View the filing
Conscious reduction in non-home loan disbursement due to West Asia crisis given higher risk of that segment
p. 12
“Non-home loans, a slight reduction in the quarter -- in the last 2 quarters, I would say, was a part of the design, given the situation around West Asia crisis and by philosophy, non-housing loans being slightly more riskier.”
Rishi Anand, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.