Aptus Value Housing Finance: Navigating Growth with Strategic Precision in Q2 FY26

Aptus Value Housing Finance India Limited has reported a resilient performance for the second quarter and first half of fiscal year 2026, demonstrating consistent growth and strong profitability amidst evolving market dynamics. The company, a prominent player in affordable housing finance, continues to expand its footprint and refine its operational strategies. For H1 FY26, Aptus recorded a profit after tax of INR446 crore, marking a robust 26% year-on-year growth. The total income for Q2 FY26 grew by 27% year-on-year to INR554 crore, with the Net Income Margin (NIM) rising to INR389 crore, also a 27% increase. These figures underscore the company's ability to maintain strong financial health and operational efficiency.

Performance Highlights and Strategic Shifts

Disbursements for Q2 FY26 reached INR963 crore, a 24% quarter-on-quarter increase, and H1 FY26 disbursements grew by 8% year-on-year. The Assets Under Management (AUM) expanded by 22% year-on-year and 4% quarter-on-quarter, reaching INR11,767 crore. This growth was supported by the expansion of their branch network to 321 locations, with 20 new branches added during Q2 FY26, primarily in Maharashtra and Odisha. The company's focus on scaling in these under-penetrated markets, alongside deepening its presence in existing states, is a key driver of its expansion strategy.

However, the quarter also saw a marginal rise in delinquency, with Gross Non-Performing Assets (GNPA) increasing by 6 basis points to 1.55% and Net Non-Performing Assets (NNPA) at 1.17%. Despite this, the company's 30+ delinquency improved to 6.34%, attributed to enhanced collection efficiency and proactive early-stage portfolio management. Credit costs for H1 FY26 increased to 50 basis points, primarily due to an accounting policy change to write off outstanding loans beyond 500 days, a shift from the previous two-year period.

Operational Excellence and Digital Transformation

Aptus continues to prioritize operational excellence and digital transformation. The company's operating expenses as a percentage of average AUM remained stable at 2.7%, reflecting its cost-efficient model. Significant investments have been made in technology, including the new ZIVA loan origination system, which has stabilized across branches, enhancing process control, data accuracy, and monitoring. Digital adoption is high, with over 90% digital agreements and 95% digital collections. The use of an account aggregator framework and bureau inputs is strengthening underwriting and enabling access to higher-value, better-quality customer segments.

Future Outlook and Investor Confidence

The management expressed strong confidence in achieving its medium-term vision of INR25,000 crore AUM, sustaining a 25%+ growth rate. This will be driven by continued expansion into new geographies and a strategic focus on improving customer profiles by increasing the minimum loan ticket size to INR7 lakhs. The company's long-term credit rating was upgraded to AA (Stable) by ICRA, recognizing its robust asset quality, prudent risk management, and strong capitalization. This upgrade, along with a broadened and diversified institutional shareholder base, enhances market liquidity and investor participation. Aptus Value Housing Finance India Limited is poised for sustained growth, backed by its disciplined execution, technological advancements, and a clear strategic roadmap.