Aadhar Housing Finance Q2 profit rises 16% to Rs 308.29 crore

Aadhar Housing Finance Limited reported standalone profit after tax of Rs 308.29 crore for the quarter ended September 30, 2026, up 16% from Rs 266.35 crore a year earlier, as total income increased 16% to Rs 1,047.76 crore despite higher finance costs and employee expenses.

How did Aadhar Housing Finance's quarterly profit change?

Aadhar Housing Finance recorded profit after tax of Rs 308.29 crore in the September 2026 quarter, compared with Rs 266.35 crore in the September 2025 quarter and Rs 282.31 crore in the June 2026 quarter. The year-on-year increase was Rs 41.94 crore and the sequential increase was Rs 25.98 crore. Basic earnings per share were Rs 7.04, against Rs 6.16 a year earlier and Rs 6.47 in the preceding quarter.

Profit before tax rose to Rs 397.02 crore from Rs 342.65 crore in the September 2025 quarter, while total tax expense increased to Rs 88.73 crore from Rs 76.30 crore. Current tax was Rs 85.59 crore and deferred tax was Rs 3.14 crore. Total comprehensive income reached Rs 321.09 crore, including Rs 12.80 crore of other comprehensive income, compared with Rs 265.21 crore a year earlier.

What drove Aadhar Housing Finance's income growth?

Aadhar Housing Finance's total income rose by Rs 148.57 crore year on year to Rs 1,047.76 crore in the September 2026 quarter. Revenue from operations was Rs 1,047.70 crore, against Rs 897.06 crore a year earlier, while other income declined to Rs 0.06 crore from Rs 2.13 crore. Total income was also higher than Rs 997.08 crore in the June 2026 quarter.

Interest income, the largest income line, increased to Rs 925.22 crore from Rs 799.37 crore in the September 2025 quarter. Net gain on derecognition of financial instruments under the amortised-cost category rose to Rs 65.38 crore from Rs 44.08 crore, and fees and commission income increased to Rs 52.02 crore from Rs 49.58 crore. Net gain on fair-value changes was Rs 5.08 crore, compared with Rs 4.03 crore a year earlier.

For the half year ended September 30, 2026, total income was Rs 2,044.84 crore, compared with Rs 1,750.47 crore in the corresponding half year of 2025. Revenue from operations increased to Rs 2,040.47 crore from Rs 1,745.17 crore, while interest income rose to Rs 1,811.86 crore from Rs 1,559.47 crore. Half-year profit after tax increased to Rs 590.60 crore from Rs 503.65 crore.

Which costs increased during the September quarter?

Aadhar Housing Finance's total expenses increased by Rs 94.20 crore year on year to Rs 650.74 crore in the September 2026 quarter. Finance costs, the largest expense line, rose to Rs 389.07 crore from Rs 341.62 crore and were also above Rs 376.39 crore in the June 2026 quarter. Total expenses were Rs 633.51 crore in the preceding quarter.

Employee benefits expense rose to Rs 156.81 crore from Rs 122.28 crore in the September 2025 quarter. This expense included a Rs 14.21 crore charge for options granted under the Employee Stock Options Plan 2025. Depreciation and amortisation increased to Rs 9.74 crore from Rs 7.25 crore, while other expenses declined to Rs 70.88 crore from Rs 72.23 crore.

Impairment on financial instruments was Rs 24.24 crore, compared with Rs 13.16 crore a year earlier but lower than Rs 31.67 crore in the June 2026 quarter. First-half impairment was Rs 55.91 crore against Rs 39.88 crore in the corresponding period of 2025. The September-quarter net profit margin, defined by Aadhar Housing Finance as profit after tax divided by total income, was 29.42%, compared with 28.88% for the half year ended September 30, 2026.

What do Aadhar Housing Finance's balance sheet and asset-quality metrics show?

Aadhar Housing Finance reported housing and other loans of Rs 26,543.23 crore as of September 30, 2026, compared with Rs 24,839.59 crore at March 31, 2026. Total assets increased to Rs 29,366.09 crore from Rs 27,389.90 crore over the same period. Cash and cash equivalents rose to Rs 868.90 crore from Rs 712.99 crore, while investments were Rs 632.55 crore compared with Rs 631.09 crore.

Borrowings other than debt securities rose to Rs 17,216.17 crore from Rs 15,064.23 crore at March 31, 2026. Debt securities decreased to Rs 3,173.90 crore from Rs 3,619.17 crore, while total equity increased to Rs 8,195.08 crore from Rs 7,534.60 crore. The debt-equity ratio was 2.35 and total debts to total assets were 70.26% as of September 30, 2026.

Gross non-performing assets, measured as Stage 3 gross loans divided by total gross loans, stood at 1.35% at September 30, 2026. Net non-performing assets were 0.89%, the provision coverage ratio was 34.53%, and the capital adequacy ratio was 42.11%. The liquidity coverage ratio, calculated as the average of the previous 90 days, was 239.76%.

What other disclosures accompanied Aadhar Housing Finance's results?

Aadhar Housing Finance allotted 10,56,040 equity shares of Rs 10 each during the September 2026 quarter following the exercise of employee stock options. Paid-up equity share capital was Rs 438.39 crore at September 30, 2026, compared with Rs 433.09 crore a year earlier. The company reported one operating segment, housing finance within financial services.

During the half year, Aadhar Housing Finance assigned 10,216 loan accounts that were not in default, representing Rs 961.50 crore of loan accounts. The assigned loans had a weighted-average maturity of 150 months and weighted-average holding period of 16 months, while retention of beneficial economic interest was 10%. The company said it neither transferred nor acquired stressed or default loans in the six months ended September 30, 2026.

The September-quarter standalone results were unaudited and reviewed by joint statutory auditors. Their November 5, 2026 review report said nothing had come to their attention suggesting that the standalone statement had failed to disclose information required by listing regulations or contained a material misstatement.

Conclusion

Aadhar Housing Finance combined a Rs 148.57 crore year-on-year increase in total income with a Rs 94.20 crore increase in expenses, producing a Rs 41.94 crore rise in September-quarter profit after tax. Interest income increased by Rs 125.85 crore, while finance costs rose by Rs 47.45 crore and employee benefits expense increased by Rs 34.53 crore.

The next disclosed matter to watch is Aadhar Housing Finance's assessment of the four Labour Codes notified on November 21, 2025. The company recorded a Rs 15.92 crore pre-tax increase in liabilities for gratuity and compensated absences in the year ended March 31, 2026, and said it would monitor Central and State rules and government clarifications for future effects.