Summary:
Aadhar Housing Finance reported 15.7% YoY profit growth to ₹308.3 crore in Q2FY27. AUM increased 18% to ₹32,643 crore, while loan disbursements rose 22%. Asset quality remained stable, despite a 2.2% decline in shares during trading.
Aadhar Housing Finance Limited (NSE: AADHARHFC | BSE: 544176) reported a 15.7% YoY increase in consolidated net profit to approximately ₹308.3 crore for Q2FY27. The affordable housing lender also recorded growth in loan disbursements and assets under management (AUM), supported by demand for home loans.
The financial results cover the quarter ended September 30, 2026.
Q2FY27 Financial Performance
Aadhar Housing Finance's consolidated total income increased approximately 16.5% YoY to ₹1,048 crore, compared with around ₹899 crore in Q2FY26.
Net profit rose to ₹308.3 crore from approximately ₹266.5 crore in the corresponding quarter last year. On a sequential basis, profit increased around 9% from Q1FY27.
For H1FY27, consolidated net profit reached approximately ₹590.7 crore, registering growth of over 17% YoY.
The company's earnings were also affected by employee stock option expenses. After adjusting for these costs, Q2 profit was approximately ₹319 crore, representing around 20% YoY growth.
The difference between reported and adjusted profit is important because employee stock option charges form part of accounting expenses.
Loan Book Expands as Disbursements Grow 22%
Aadhar Housing Finance's AUM increased 18% YoY to ₹32,643 crore as of September 30, 2026, compared with ₹27,554 crore a year earlier.
Loan disbursements during Q2FY27 stood at ₹2,577 crore, increasing 22% YoY.
The company had more than 3.48 L active loan accounts at the end of the quarter.
Its business primarily serves customers seeking affordable housing finance, including salaried and self-employed borrowers in lower-income segments.
Growth in this market depends on housing demand, property affordability, employment conditions and access to reasonably priced credit.
A larger loan portfolio helps generate additional interest income. However, profitability also depends on borrowing costs and the ability of customers to repay their loans.
Asset Quality and Capital Position
Asset quality remained relatively stable during the quarter.
Gross non-performing assets (GNPA) stood at approximately 1.34%, while net NPA was around 0.89%.
Collection efficiency was close to 99%, indicating that most scheduled collections continued to be received.
The company also maintained a capital adequacy ratio of 42.11%, providing a substantial regulatory capital buffer.
Its lending spread stood near 5.7%. This measures the difference between the return earned on loans and the cost of borrowing funds.
Even small changes in this spread can influence profitability when applied across a large housing loan portfolio.
Why Aadhar Housing Finance Shares Declined
Despite reporting higher profit and loan growth, Aadhar Housing Finance shares witnessed selling pressure on November 6, 2026.
The stock was trading near ₹428.70 during morning dealings, down approximately 2.2%.
The decline came despite positive reported earnings. The quarter showed some pressure on profitability ratios, while the lending business remained exposed to interest-rate movements and credit costs.
A single trading session does not establish whether these factors caused the price decline.
Outlook for FY27
The company's FY27 plans include further expansion of its branch network and continued growth in loan disbursements.
Full-year expectations indicate approximately 20% growth in AUM and profit, subject to lending conditions.
Credit costs, collection efficiency and funding expenses will be important in the coming quarters.
Overall, Q2FY27 showed continued expansion in affordable housing finance, with rising earnings and stable asset quality. Sustaining these trends will depend on loan demand, borrowing costs and disciplined credit underwriting.
