AADHARHFC
Large CapAadhar Housing Finance Limited
Financial Services
Aadhar Housing Finance Limited is an HFC focused on the low-income housing segment in India, with an AUM of INR 306bn. It has a 100% secured retail loan book, average ticket size of INR 1.1mn, and serves c.336k live accounts across 626 branches in 22 states/UTs.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 65/100Rev +18% YoY · PAT +27% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹985 Cr | +18.3% | +4.5% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹311 Cr | +26.9% | +10.7% |
| PAT margin | 31.6% | +216 bps | +177 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
AUM grew 20% YoY to INR 306bn, with PAT up 22% YoY to INR 11.1bn (ex-exceptional). Disbursements rose 17% YoY to INR 95.6bn. Spreads expanded 13bps YoY to 5.8%, while GNPA increased 3bps YoY to 1.08%.
The company delivered robust AUM and PAT growth for FY26, maintaining strong spreads and improving efficiency. Asset quality remains stable despite a slight uptick in GNPA. The focus on low-income housing, diversified funding, and digital capabilities supports continued performance.
AUM by State (March 31, 2026)
Latest issuer-disclosed distribution across 10 reported categories.
Low-Income Housing Focus
The company is focused on the low-income housing segment with an average ticket size of INR 1.1mn and 63% of Gross AUM with EWS/LIG customers.
Extensive Distribution Network
Pan-India presence with 626 branches covering 552 districts across 22 states and union territories, serving c.336k live accounts.
Technology-Enabled Business Model
A digital-first operating model with end-to-end TCS-enabled core system, 40+ Fintech integrations, and AI/ML for risk management and efficiency.
Diversified Funding Sources
42 borrowing relationships with a diversified base (Banks 51%, NHB 22%, NCD 19%, ECB 5%, Others 4% as of Mar-26).
Branch Network Expansion
The company expanded its branch network to 626 branches as of March 31, 2026, from 580 branches in FY25.
Deep Impact Branches
Deep Impact branches are being opened in remote locations to cater to housing needs in tier 4 and tier 5 towns.
Government Housing Initiatives
PMAY 2.0 targets 30 million houses by 2029, with the Union Budget 2024-25 allocating INR 30,170 Cr for PMAY-U, a 20.19% increase YoY.
Urbanization and Demographic Shifts
Migration to cities and the rise of nuclear families drive demand for housing and tailored loan products, supported by 'Satellite cities' development.
Low Mortgage-to-GDP Ratio
India's mortgage-to-GDP ratio of 12.34% (Mar-24) indicates significant growth potential compared to developed markets.
Rising Disposable Incomes
Higher disposable incomes are boosting affordability and demand for housing loans.
Asset Quality Trend
Gross NPA increased by 3 bps YoY to 1.08% in FY26, indicating a slight deterioration.
Impact of New Labour Code
An exceptional item of ₹159 Mn (Net of tax ₹124 Mn) was recorded due to the impact of the new labour code arising from past service cost.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The investor presentation provides both full-year (YoY) and quarterly (YoY and QoQ) comparisons. YoY is crucial for assessing annual trends and performance against seasonal factors, while QoQ highlights sequential momentum in key operational metrics.
AUM Growth
AUM grew by 20% YoY to INR 305,713 Mn in FY26.
Disbursements Growth
Disbursements increased by 17% YoY to INR 95,557 Mn in FY26. Q4 FY26 disbursements grew 20% YoY to INR 30,866 Mn.
Spreads
Spreads increased by 13 bps YoY to 5.8% in FY26. Q4 FY26 spread was 5.8%.
Cost of Borrowings
Cost of borrowings for FY26 was 7.7%. Incremental borrowings in Q4 FY26 had an interest rate of 7.6%.
Digital Transformation and AI/ML Adoption
Management is strengthening risk analytics with AI/ML to enhance credit underwriting, mitigate risks, and optimize collections efficiency.
Operational Efficiency and Cost Control
The company maintains an agile branch network with appropriate branch sizes to keep operating expenses in control.
AUM Retention and Yield Amplification
Management aims to automate risk-based pricing for higher approval rates and emphasize AUM retention and yield amplification through data-driven strategies.
Diversification of Borrowings
There is an increasing focus on diversifying borrowing sources to ensure stable and cost-effective funding.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AUM Growth | +20% YoY | Sustained double-digit AUM growth, particularly in the low-income housing segment. |
| Gross NPA | 1.08% | Stabilization or reduction in GNPA, and effective management of credit costs. |
| Spreads | 5.8% | Maintenance or expansion of spreads amidst changes in portfolio yield and borrowing costs. |
| Branch Network Expansion & Utilization | 626 branches, opening Deep Impact branches | Continued strategic expansion of the branch network and efficient utilization of new branches, especially in remote locations. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
52Neutrallabel neutral
Technical chart
AADHARHFCdaily · 6M-3.2%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 45. Wait for confirmation.
- SMA20 falling (~4.6% over last month) — short-term momentum negative.
- RSI(14) at 45 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 11% off 52W high · 9% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 43.6%.
- Growth contributes 19/25 to the score.
- Valuation contributes 12/30 to the score.
Main drags
- Altman Z is 1.1, in distress territory.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
- Cash flow is weaker at 0/10; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 9th percentile of the scored universe and 19th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter holding is 64.9%. Key concern: Promoter holding fell 10.6%.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Financial Services: 19th pctile, median 62 · Large: 6th pctile, median 74
46 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 64.9%.
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Promoter holding fell 10.6%.
- ▸Operating cash flow is negative at ₹-2808 Cr.
- ▸Debt/equity is 2.49.
- ▸Altman Z is 1.07.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 18.10
- P/B
- 2.66
- EV/EBITDA
- 1213.75
- Market Cap
- 20096.00Cr
Profitability
- ROE
- 15.90%
- ROCE
- 11.40%
- ROA
- 4.00%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 27.00%
- Revenue 3Y
- 22.00%
- EPS 3Y
- 25.00%
Balance Sheet
- Debt/Equity
- 2.49
- Interest Coverage
- —
- Altman Z
- 1.07
- Book Value
- 173.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -2808.00 Cr
- EPS TTM
- 25.15
Shareholding
- Promoter Hold
- 64.90%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 36%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.