Aadhar Housing Finance Ltd AUM rises 20% to Rs 32,643.3 crore

In H1 FY27, Aadhar Housing Finance Ltd reported assets under management of Rs 32,643.3 crore, up 20% year on year on management's adjusted basis, while adjusted profit after tax grew 22% to Rs 590.7 crore. Reported PAT growth was 17% after a pre-tax Employee Stock Options Plan charge of Rs 28.2 crore.

How did Aadhar Housing's loan book grow in H1 FY27?

Aadhar Housing's total AUM reached Rs 32,643.3 crore in H1 FY27, compared with Rs 30,571.3 crore at FY26. Management reported 20% year-on-year AUM growth after adjusting for the shift to cheque-realisation-based disbursement reporting from Q1 FY27. The book was 100% secured retail and served about 348,000 live accounts at the September 2026 period end.

Retail home loans remained the larger product category, with Rs 23,778.4 crore of AUM in H1 FY27, versus Rs 8,864.9 crore for retail other mortgage loans. Between FY24 and H1 FY27, total AUM increased from Rs 21,120.9 crore to Rs 32,643.3 crore. Home-loan AUM rose by Rs 7,983.3 crore over that period, while other mortgage AUM increased by Rs 3,539.1 crore.

The composition shows that home loans accounted for about 73% of H1 FY27 AUM, calculated from the disclosed product balances. Aadhar Housing stated that it focuses on low-income housing, with ticket sizes below Rs 15 lakh and an average ticket size of Rs 11 lakh. About 55% of AUM was attributed to salaried customers, while loan-to-value on gross AUM outstanding was about 61%.

What drove Aadhar Housing's H1 FY27 disbursements?

Aadhar Housing disbursed Rs 4,613.1 crore in H1 FY27, comprising Rs 3,445.9 crore of retail home loans and Rs 1,167.2 crore of retail other mortgage loans. Management said adjusted H1 disbursement growth was 21% year on year after the reporting transition to cheque realisation took effect in Q1 FY27.

The product mix changed from H1 FY26. Home-loan disbursements increased from Rs 2,805.8 crore to Rs 3,445.9 crore, while other mortgage disbursements declined from Rs 1,283.2 crore to Rs 1,167.2 crore. As a result, total disbursements increased from Rs 4,089 crore in H1 FY26 to Rs 4,613.1 crore in H1 FY27, even as the other mortgage product balance moved lower.

In Q2 FY27 alone, total disbursements were Rs 2,577.3 crore, up 22% from Rs 2,110.4 crore in Q2 FY26. Q2 home-loan disbursements rose to Rs 1,901.1 crore from Rs 1,456.7 crore, while other mortgage disbursements increased to Rs 676.2 crore from Rs 653.7 crore.

Aadhar Housing operated 632 branches across 23 states and union territories in September 2026, or 644 branches when offices are included. The disclosed network covered 555 districts and was supported by 43 borrowing relationships. These distribution and funding figures provide the operating context for the Rs 4,613.1 crore of half-year disbursements.

Did Aadhar Housing maintain its funding spread?

Aadhar Housing reported a 5.7% spread in H1 FY27, made up of a 13.4% portfolio yield and a 7.7% cost of borrowings. The H1 FY27 spread was 10 basis points below FY26's 5.8% and matched FY25's 5.7%. One basis point is one-hundredth of a percentage point.

Quarterly figures show that spread was 5.7% in Q2 FY27, compared with 5.9% in Q2 FY26 and 6.0% in Q3 FY26. Portfolio yield fell to 13.4% in Q2 FY27 from 13.8% a year earlier, while cost of borrowings declined to 7.7% from 7.9%. The presentation notes a 15-basis-point prime lending rate reduction effective February 2026.

Aadhar Housing reported an AA+/Stable credit rating and a positive asset-liability management position across all buckets. Portfolio yield and borrowing cost are stated as period-end measures in the presentation, so the 5.7% H1 FY27 spread reflects those disclosed end-period rates rather than an average for the six months.

What happened to Aadhar Housing's asset quality and efficiency?

Aadhar Housing reported gross non-performing assets, or GNPA, equal to 1.34% of AUM in Q2 FY27, improving by 8 basis points from 1.42% in Q2 FY26. Net non-performing assets, or NNPA, were 1.0% of AUM in both quarters. The H1 FY27 highlights rounded the GNPA measure to 1.3%.

The Q2 FY27 GNPA ratio remained above the 1.08% recorded at FY26 and the 1.05% recorded at FY25. This means the year-on-year quarterly improvement differs from the comparison with the preceding financial-year endpoints. The presentation does not disclose loan-loss provision amounts or collection data that would explain the movement in GNPA.

Reported cost to income was 36.2% in H1 FY27, compared with 36.1% in H1 FY26. Operating expenses included a pre-tax Rs 28.2 crore charge related to Employee Stock Options Plan 2025. Excluding that charge, management calculated H1 FY27 cost to income at 34.0%, a 215-basis-point year-on-year decline.

The same adjustment affected the quarterly comparison. Reported Q2 FY27 cost to income was 36.1%, compared with 36.2% in Q2 FY26, while management calculated adjusted Q2 FY27 cost to income at 33.9%. The Q2 ESOP charge was Rs 14.2 crore before tax, and the options were granted from January 2026 at an exercise price of Rs 425 per share.

Why was Aadhar Housing's reported profit growth lower than adjusted growth?

Aadhar Housing reported PAT of Rs 590.7 crore in H1 FY27, compared with Rs 503.8 crore in H1 FY26. The presentation states that reported PAT growth was 17%, while adjusted PAT growth was 22% after excluding the pre-tax Rs 28.2 crore ESOP charge.

The difference also appeared in Q2 FY27. PAT was Rs 308.3 crore, compared with Rs 266.5 crore in Q2 FY26, representing reported growth of 16% and adjusted growth of 20%, according to management. Net worth increased to Rs 8,200 crore in H1 FY27 from Rs 6,900 crore in H1 FY26.

Return on assets, or ROA, was 4.2% in H1 FY27, unchanged from H1 FY26, while return on equity was 15.0% compared with 15.1%. In Q2 FY27, ROA was 4.2% and return on equity was 15.2%. The disclosed return ratios therefore remained broadly similar while AUM and PAT increased.

Conclusion

Aadhar Housing combined 20% adjusted AUM growth with 21% adjusted disbursement growth in H1 FY27, led by retail home loans. Its 5.7% spread, 4.2% ROA and 1.34% Q2 FY27 GNPA-to-AUM ratio provide the reported operating context, while the Rs 28.2 crore pre-tax ESOP expense explains the gap between 17% reported PAT growth and 22% adjusted growth.

The next results will show whether the increase in home-loan disbursements persists after the Q1 FY27 switch to cheque-realisation reporting. Investors can also watch future reported and adjusted profit and cost-to-income figures because management disclosed the Employee Stock Options Plan 2025 charge beginning in January 2026.