Aadhar Housing Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Aadhar Housing Finance Ltd filed with BSE on 11 May 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 crossing Rs 30,000 crore for FY26, up 20% year-on-year, with full-year disbursements of Rs 9,556 crore and PAT of Rs 1,096 crore, also up 20%. Management highlighted record quarterly disbursements of Rs 3,087 crore in Q4, an improvement in gross NPA to 1.08%, and a cost-to-income ratio of 35.9% for the year. The company added 46 branches during the year taking its network to 626 branches across 22 states, and discussed funding costs, spreads and loan mix during the Q&A.
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Numbers mentioned
AUM: INR30,571 crores (FY26 (as of March 31, 2026))
p. 3
“As of 31st March 2026, our AUM stood at INR30,571 crores, crossing the INR30,000 crores milestone which I just mentioned, registering a 20% Y-o-Y growth.”
Rishi Anand, page 3 of the filed PDF · View the filing
Disbursements: INR9,556 crores (FY26)
p. 3
“Disbursements for FY '26 stood at INR9,556 crores, a 17% Y-o-Y increase, reflecting steady lending momentum across our core markets and a PAT of INR1,096 crores, a 20% Y-o-Y growth.”
Rishi Anand, page 3 of the filed PDF · View the filing
Q4 Disbursements: INR3,087 crores (Q4 FY26)
p. 4
“Disbursements during the quarter 4 was highest in the company's history with INR3,087 crores, which was 20% Y-o-Y increase, supported by strong on-the-ground execution and consistent sourcing through branch network.”
Rishi Anand, page 4 of the filed PDF · View the filing
Gross NPA: 1.08% (Q4 FY26)
p. 4
“Asset quality remains pristine with gross NPA standing at 1.08%, a sequential improvement of 30 bps versus quarter 3 FY26.”
Rishi Anand, page 4 of the filed PDF · View the filing
Collection efficiency: above 99.8% (Q4 FY26)
p. 4
“Collection efficiency continues to remain strong, above 99.8%, reflecting consistent on-the-ground execution.”
Rishi Anand, page 4 of the filed PDF · View the filing
Cost-to-income ratio: 35.9% (FY26)
p. 5
“Our cost-to-income ratio for FY '26 came in at 35.9% as compared to 36.4% in FY '25, an improvement of approximately 55 bps.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
PAT (excluding Labour Law Code impact): INR1,108 crores (FY26)
p. 6
“Finally, the PAT came in at INR1,108 crores without the impact of the new Labour Law Code.”
Rajesh Viswanathan, page 6 of the filed PDF · View the filing
Q4 PAT: INR311 crores (Q4 FY26)
p. 6
“Quarter 4 PAT came in at INR311 crores as compared to INR245 crores in quarter 4 FY '25, a growth of 27%.”
Rajesh Viswanathan, page 6 of the filed PDF · View the filing
ROA: 4.4% (FY26)
p. 6
“FY '26 ROA and ROE, again, without the impact of the new Labour Law code is 4.4% and ROE is 15.9%.”
Rajesh Viswanathan, page 6 of the filed PDF · View the filing
Exit cost of funds: 7.71% (as of March 31, 2026)
p. 5
“The exit cost of funds on 31st March 2026 stood at 7.71%.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
Exit spread: 5.82% (as of March 31, 2026)
p. 5
“The exit spread stood -- at the end of 31st March '26 was 5.82% as compared to 5.7% at the previous year-end.”
Rajesh Viswanathan, page 5 of the filed PDF · View the filing
Capital adequacy ratio (Tier 1): 42% (Q4 FY26)
p. 6
“Capital adequacy ratio for quarter 4 FY '26 stood at 42% for Tier 1 and 0.5% for Tier 2.”
Rajesh Viswanathan, page 6 of the filed PDF · View the filing
Average ticket size: INR10.9 lakhs (FY26)
p. 4
“We continue to maintain a well-diversified book with an average ticket size of INR10.9 lakhs and a 60% loan-to-value ratio, which is well within comfort levels.”
Rishi Anand, page 4 of the filed PDF · View the filing
Branch network: 626 branches across 22 states (as of March 31, 2026)
p. 4
“We have added 5 new branches in quarter 4 and 46 branches in the full year, in line with our strategy, taking our total network to-date to -- as of March 31 to 626 branches across 22 states, covering over 550-plus districts.”
Rishi Anand, page 4 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, profit growth, disbursement growth — 20% AUM, 20% profit and 17% to 18% disbursement growth
stated firmly by Rishi Anand
p. 4
“As we go ahead, we would continue with similar guidance of 20% AUM, 20% profit and 17% to 18% disbursement growth.”
Rishi Anand, page 4 of the filed PDF · View the filing
AUM — INR50,000 crores · 3 years
stated as an aspiration by Rishi Anand
p. 7
“If I look at the trajectory of numbers that I've guided 20% growth, if I look at 3 years from now, the next milestone, obviously in 3 years should be INR50,000.”
Rishi Anand, page 7 of the filed PDF · View the filing
Spreads — contraction of about 8 bps to 10 bps · year-on-year
stated conditionally by Rajesh Viswanathan
p. 10
“We have always guided that our spreads year-on-year will probably see some contraction to the extent of about 8 bps to 10 bps.”
Rajesh Viswanathan, page 10 of the filed PDF · View the filing
Cost-to-income ratio — another 50 bps · next financial year
stated as an aspiration by Rajesh Viswanathan
p. 13
“We're looking at another 50 bps probably in the next financial year.”
Rajesh Viswanathan, page 13 of the filed PDF · View the filing
Cost of funds — exit rate of 7.7% · next 2 to 3 quarters
stated conditionally by Rajesh Viswanathan
p. 12
“If we are able to maintain 7.7% cost throughout the entire next year, I'll be very, very happy to be very honest.”
Rajesh Viswanathan, page 12 of the filed PDF · View the filing
Home loan to non-home loan mix — 70-30 · medium term
stated as an aspiration by Rajesh Viswanathan
p. 15
“But -- and with a clarification that we will want to maintain at about 70-30 in the medium term.”
Rajesh Viswanathan, page 15 of the filed PDF · View the filing
DA (assignment) volume — 10% to 15% growth over INR1,725 crores · next year
stated as an aspiration by Rajesh Viswanathan
p. 9
“probably next year, we would be trying to grow that in the range of anywhere between 10% to 15% in terms of overall DA”
Rajesh Viswanathan, page 9 of the filed PDF · View the filing
Self-employed book share — 1%, 1.5% every year · medium term
stated firmly by Rajesh Viswanathan
p. 16
“Always have guided that self-employed business will -- as a percentage of the AUM will move towards self-employed from -- overall book will move towards self-employed by 1%, 1.5% every year.”
Rajesh Viswanathan, page 16 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 said bounce rates have remained stable and most customers deal in essential commodities, with little NRI exposure.
Answered by Rishi Anand
Asked by Renish: Whether the West Asia geopolitical situation is impacting collections or causing the company to calibrate disbursements.
p. 6
“Our bounce rates have been stable for the last 6 quarters.”
Rishi Anand, page 6 of the filed PDF · View the filing
Management cited an 18% market share within low-income housing finance companies and reiterated a milestone target.
Answered by Rishi Anand
Asked by Renish: How sustainable is the 20% AUM growth given industry-wide market share trends.
p. 7
“If I look at the current numbers, we are at about 18% market share.”
Rishi Anand, page 7 of the filed PDF · View the filing
Management said the slower LAP growth was a deliberate, cautious decision following the tariff issue and now West Asia tensions.
Answered by Rishi Anand
Asked by Kunal Shah: Why LAP growth has lagged and how the company views the mix between home loans and LAP.
p. 8
“LAP growth -- and you're right, when you read at the data that LAP growth has been slightly slow, I would say this was deliberate and it was kind of completely planned.”
Rishi Anand, page 8 of the filed PDF · View the filing
Management attributed it to better spreads on assignment deals and one-time items in other income.
Answered by Rajesh Viswanathan
Asked by Kunal Shah: What drove the higher assignment (DA) income and other income this quarter.
p. 9
“The total fresh DA that we did for the whole year was in the range of about INR1,725 crores, similar to last full year. And the upfront income, which seems higher is on account of better spreads that we have got.”
Rajesh Viswanathan, page 9 of the filed PDF · View the filing
Management confirmed the ESOP cost impact was reflected in Q4 and full year FY26 figures.
Answered by Rajesh Viswanathan
Asked by Kunal Shah: Was the ESOP cost a one-time item that will not recur in FY27.
p. 6
“Also included in the manpower cost for quarter 4 FY '26 is an amount of INR13.5 crores, both in quarter 4 FY '26 and full year FY '26, which is the impact of fresh ESOPs that we have granted to employees in the quarter 4 of the current financial year.”
Rajesh Viswanathan, page 6 of the filed PDF · View the filing
Management said interest rates have likely stagnated for a few quarters and spreads would see modest contraction, offset by mix shifts.
Answered by Rajesh Viswanathan
Asked by Shreya Shivani: How yields and spreads are expected to move given the interest rate environment and PLR cut in February.
p. 10
“Our view is that the interest rate cycle has stagnated and to a certain extent, will be stagnant for at least two, three quarters.”
Rajesh Viswanathan, page 10 of the filed PDF · View the filing
Management clarified that 1+ DPD actually reduced by 80 bps due to sustained collection efforts, and named several states driving disbursement growth.
Answered by Rishi Anand
Asked by Arun Antony: What drove the reduction in 1+ DPD and which states drove the strong disbursement growth.
p. 11
“I will not -- I can't be singling out any one effort on a reduction of 80 bps of 1 plus. I think it is a continuous effort.”
Rishi Anand, page 11 of the filed PDF · View the filing
Management attributed it to seasonal Q4 sales contests and competitions for employees.
Answered by Rishi Anand
Asked by Prithviraj Patil: What drove the sequential increase in opex to AUM despite limited branch additions.
p. 12
“I think opex to AUM, it is always a quarter 4 phenomenon because we run various competition and contests in quarter 4 for our employees.”
Rishi Anand, page 12 of the filed PDF · View the filing
Management said ticket size fluctuates based on emerging versus urban branch mix and is not intentionally being lowered.
Answered by Rajesh Viswanathan
Asked by Nischint Chawathe: How incremental ticket sizes have trended and whether the company is deliberately lowering ticket size.
p. 15
“No, I will not say we are comfortable by ticket size going down. We are very, very comfortable by sustaining the ticket size.”
Rajesh Viswanathan, page 15 of the filed PDF · View the filing
Management explained that NCDs are largely fixed while bank and part of NHB borrowings are floating and subject to repricing.
Answered by Rajesh Viswanathan
Asked by Rakesh Kumar: What portion of non-banking borrowings could still be repriced given falling interest rates.
p. 17
“NHB, as I said, 22% is NHB, NHB 50% is floating, 50% is fixed.”
Rajesh Viswanathan, page 17 of the filed PDF · View the filing
Risks flagged
Elevated competitive intensity in the urban housing finance segment from banks
p. 3
“At the same time, competitive intensity remains elevated in certain segments, particularly in the urban segment, where banks continue to be active.”
Rishi Anand, page 3 of the filed PDF · View the filing
Potential impact from West Asia geopolitical tensions on collections
p. 6
“West Asia war or the current geopolitical issues, the first line of defense, and I always make this statement for us, the first line of defense is always if there was something to be going wrong, it would be the bounce rate increase or decrease in the bounce rate.”
Rishi Anand, page 6 of the filed PDF · View the filing
Caution on loan-against-property growth following the tariff issue
p. 8
“This plan or deliberation started when the tariff issue happened, and we cautioned our teams to be very careful and go -- I will not say go slow, it might be the wrong choice of words, but be very careful.”
Rishi Anand, page 8 of the filed PDF · View the filing
Possible interest rate surprises if inflation is not controlled
p. 10
“We -- post that, if inflation doesn't come under control, then there will be some interest rate surprises on the other side.”
Rajesh Viswanathan, page 10 of the filed PDF · View the filing
Ongoing spread contraction due to lower incremental yields versus book yield
p. 10
“This is predominantly because our incremental business that we do in terms of yields is lower than the book yield that we are carrying.”
Rajesh Viswanathan, page 10 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.