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Aadhar Housing Finance reported a 19 per cent year-on-year increase in its net profit for the first quarter of FY27, supported by higher interest income and growth in its loan portfolio. The company's assets under management crossed INR 31,000 crore during the quarter, while asset quality improved with a decline in gross NPAs. The lender also expanded its branch network across India, reflecting continued focus on affordable housing finance, particularly in Tier II and Tier III cities where housing demand remained steady.
Aadhar Housing Finance reported a 19 per cent increase in its consolidated net profit to INR 282 crore for the first quarter of FY27, compared with INR 237 crore in the corresponding period of the previous financial year, according to a regulatory filing.
The housing finance company's total income increased to INR 997 crore during the quarter from INR 851 crore in the same period last year. Interest income also recorded healthy growth, rising to INR 887 crore from INR 760 crore a year earlier, reflecting continued expansion in its loan book.
The company's total expenses rose to INR 634 crore during the quarter under review, compared with INR 546 crore in the corresponding quarter of the previous fiscal.
Aadhar Housing Finance continued to expand its lending business during the quarter, with its Assets Under Management (AUM) increasing 18 per cent year-on-year to INR 31,364 crore, compared with INR 26,524 crore in the same period of the previous financial year. The growth comes as demand for affordable housing finance remained steady across smaller cities and emerging urban centres.
Asset quality also improved during the quarter. The company's gross Non-Performing Assets (NPAs) declined to 1.31 per cent of total advances from 1.34 per cent in the year-ago period, indicating stable portfolio performance despite continued loan growth.
Its financial position also strengthened, with net worth rising 19 per cent year-on-year to INR 7,853 crore, compared with INR 6,616 crore a year earlier.
Commenting on the quarterly performance, Managing Director and Chief Executive Officer Rishi Anand said the operating environment for low-income housing finance remained favourable during the quarter, supported by resilient housing demand, stable affordability and sustained demand across Tier II and Tier III markets.
He further stated that the long-term outlook for the affordable housing finance sector continued to remain positive, supported by low mortgage penetration, rising urbanisation and a large housing requirement in the Economically Weaker Section (EWS) and Low-Income Group (LIG) segments.
Anand also said the company's Urban and Emerging branch strategy continued to support its expansion plans. During the quarter, Aadhar Housing Finance expanded its network to 628 branches across 22 states and Union Territories, helping improve market reach as well as branch productivity. He added that the company remained well placed to meet the growing demand for affordable housing finance through deeper penetration in underserved markets.
Aadhar Housing Finance primarily focuses on providing home loans to customers in the low-income and affordable housing segment. The company has steadily expanded its presence in semi-urban and rural markets over the past few years, aligning its business with the government's continued focus on affordable housing and increased homeownership. The sector has also benefited from improving infrastructure, urban expansion and sustained demand from first-time homebuyers.
Source PTI
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