Aptus Value Housing Finance: Navigating Growth with Prudent Management in Q3 FY26

Aptus Value Housing Finance India Limited has demonstrated a robust performance in the third quarter and nine months ended December 31, 2025, showcasing sustained growth momentum and prudent portfolio management. The company's Assets Under Management (AUM) grew by a significant 21% year-on-year to INR 12,330 crore, driven by an 11% increase in disbursements during Q3 FY26, reaching INR 1,030 crore. This growth comes despite a strategic decision to moderate smaller-ticket loans, reflecting management's focus on quality over sheer volume.

For the nine-month period, disbursements stood at INR 2,768 crore, marking a 9% year-on-year growth. The company's profitability metrics remained strong, with Profit After Tax (PAT) for Q3 FY26 increasing by 26% year-on-year to INR 239 crore. The Net Income Margin also saw a healthy 26% year-on-year growth to INR 406 crore for the quarter. This consistent performance underscores Aptus's ability to deliver strong returns, with Return on Equity (ROE) sustained above the 20% level, positioning it among the industry's top performers.

Financial Performance Snapshot

Strategic Expansion and Portfolio Quality

Aptus's growth trajectory is underpinned by a multi-pronged strategy focusing on geographical expansion, portfolio quality enhancement, and technological leverage. The company expanded its branch network to 335, adding 37 new locations during the calendar year. Future expansion will target new states like Maharashtra and Odisha, alongside strengthening its presence in existing high-growth pockets of Telangana and Karnataka. This contiguous growth strategy aims to deepen market penetration in semi-urban and rural areas, catering to self-employed borrowers and first-time home buyers.

A significant strategic shift involves increasing the average ticket size (ATS) for home loans, moving away from loans below INR 7 lakhs. This decision, while impacting short-term disbursement growth, is designed to attract higher-quality customers and align with rising construction costs, ultimately improving portfolio quality. Management expects ATS to increase from INR 8-9 lakhs to INR 10-10.5 lakhs. Concurrently, Aptus is optimizing lending rates for incremental home loans, leveraging lower borrowing costs to attract more volumes without compromising Net Interest Margins (NIMs).

Asset quality remained largely stable, with Gross NPA at 1.56% and Net NPA at 1.18% for Q3 FY26. While a slight uptick in 30+ DPD to 6.48% was observed due to seasonal volatility during festive periods, and a minor increase in SME loan NPAs, management is actively implementing measures to control these in Q4 FY26. The credit cost for 9M FY26 remained at a healthy 50 basis points, well within the guided range, reflecting robust risk management.

Digital Transformation and Operational Efficiency

Technology and data-led decision-making are pivotal to Aptus's growth and risk discipline. The company has made significant strides in digital adoption, with over 92% of agreements executed digitally and more than 94% of collections routed through digital channels. Its mobile-first, fully integrated digital Loan Origination System (LOS) streamlines customer onboarding, lead management, and disbursements, enhancing efficiency and accuracy.

This digital prowess extends to risk management, where real-time analytics track delinquencies, risk trends, and asset quality. The increased adoption of account aggregator data and credit bureau insights is sharpening underwriting processes, improving portfolio quality, and supporting growth in higher-ticket customer cohorts. The fully in-house model, from business origination to collections, further contributes to cost efficiency and reduced operational risk, ensuring a scalable growth engine.

Product Segment Overview

Outlook and Management Confidence

Looking ahead, Aptus Value Housing Finance India Limited expects to deliver sustainable AUM growth of 22-24%, driven by new branch additions, channel augmentation, higher ATS, and calibrated lending rates. While the targeted INR 25,000 crore AUM by FY29 might see a slight delay of one or two quarters due to market conditions and strategic adjustments, management remains confident in its long-term vision. The company's strong liquidity position of INR 1,877 crore, including INR 1,387 crore of undrawn bank sanctions, provides ample headroom for future growth. The management's balanced commentary, acknowledging both achievements and areas for improvement, reinforces its commitment to transparent disclosures and disciplined execution, aiming to build a resilient and high-quality loan book.