Aadhar Housing Finance Limited is a housing finance company (HFC) primarily focused on the low-income housing segment in India. The company's core mission is to provide financing solutions to the Economically Weaker Section (EWS) and Low-Income Group (LIG) customers, enabling them to achieve homeownership. With an average loan ticket size of approximately ₹1.1 million, Aadhar operates in a granular, retail-focused market segment. The company's loan book is 100% secured, providing a strong foundation for its asset quality.

As of December 2025, Aadhar has scaled its Assets Under Management (AUM) to ₹288 billion, serving over 324,000 live accounts. Its operations are geographically diversified, with a robust pan-India presence spanning 22 states and union territories through a network of 621 branches. This extensive reach allows the company to penetrate Tier 4 and Tier 5 towns, catering to underserved populations. The business is backed by BCP Topco VII Pte. Ltd., an affiliate of The Blackstone Group, a leading global investment firm, which acquired the company in June 2019.

The company is led by an experienced and cycle-tested management team. The board includes seasoned professionals from banking, finance, and regulatory bodies, ensuring strong corporate governance. Aadhar leverages a technology-enabled business model, utilizing digital platforms for loan origination, processing, and servicing to enhance efficiency and customer experience. This digital-first approach is complemented by a robust credit assessment framework that includes in-house technical and legal due diligence, ensuring prudent underwriting standards. The company's commitment to social objectives is a core component of its business model, with a significant portion of its portfolio dedicated to EWS/LIG customers and various CSR initiatives aimed at skill development, healthcare, and nutrition.

Official Website: https://aadharhousing.com/

• Assets Under Management (AUM): Reached ₹287,900 million for the nine months ended December 31, 2025 (9M FY26), a significant increase of 20% year-over-year (YoY). The portfolio is 100% secured retail loans.

• Disbursements: Totaled ₹64,691 million in 9M FY26, marking a 15% YoY growth, indicating sustained demand and effective loan origination.

• Profitability: Profit After Tax (PAT), excluding a one-time exceptional item, stood at ₹7,974 million for 9M FY26, reflecting a strong 20% YoY growth. For the third quarter (Q3 FY26), PAT grew 23% YoY to ₹2,936 million.

• Return Ratios: The company maintains robust profitability metrics. Return on Assets (ROA) for 9M FY26 was 4.4%, and Return on Equity (ROE) was 15.6%. These figures demonstrate efficient use of assets and equity to generate profits.

• Net Worth & Capital Adequacy: Net worth increased to ₹72 billion as of December 2025. The Capital Adequacy Ratio remains strong at 44.1% (Tier I at 43.6%), well above regulatory requirements, providing a substantial buffer for future growth.

• Income & Expenses: Total income for 9M FY26 grew 18% YoY to ₹26,944 million. The Cost-to-Income ratio improved to 35.4% in 9M FY26 from 35.9% in the previous year, highlighting increased operational efficiency.

The company demonstrates strong financial health with consistent, double-digit growth in its loan book, disbursements, and profitability, all while maintaining high capital adequacy and improving operational efficiency.

• Dedicated Low-Income Focus: The company specializes in the low-income housing segment, with an average ticket size of ₹1.1 million and 62% of its AUM dedicated to EWS/LIG customers. This niche focus allows for specialized underwriting and a deep understanding of its target demographic.

• Extensive Distribution Network: Aadhar operates a pan-India network of 621 branches, strategically designed with a hub-and-spoke model. This includes main, small, micro, and "Deep Impact" branches, enabling deep penetration into remote Tier 4 and Tier 5 towns where formal credit is scarce.

• Granular and Diversified Portfolio: The loan book is highly granular, with over 324,000 live accounts. Geographically, no single state contributes more than 15% of the AUM, which mitigates concentration risk from regional economic downturns.

• Robust Underwriting and Risk Management: The company employs a comprehensive credit assessment process featuring centralized processing for salaried customers and decentralized for others. This is supported by in-house technical and legal teams for property valuation and due diligence, along with a dedicated Risk Containment Unit (RCU) that screens every application.

• Diversified Funding Sources: Aadhar has established relationships with 41 lenders, sourcing funds from banks (50%), the National Housing Bank (NHB) (22%), and Non-Convertible Debentures (NCDs) (21%). This diversification reduces dependency on any single source and helps manage borrowing costs.

• Positive Asset-Liability Management (ALM): The company maintains a positive ALM position across all time buckets, ensuring that its assets mature before its liabilities. This prudent management minimizes liquidity risk.

Aadhar's distinct business model is built on a specialized focus on the underserved low-income segment, supported by a deep distribution network, rigorous risk management, and a diversified liability profile.

• Large Market Opportunity: The affordable housing sector in India presents a significant growth opportunity. By 2030, the total demand for affordable housing is estimated to be 31.2 million units, translating to a potential home loan market of ₹67 trillion. The current financing penetration is low, indicating substantial room for expansion.

• Favorable Demographics and Urbanization: India's urbanization rate is projected to reach 40% by 2030. This, combined with a rising middle class, increasing disposable incomes, and a shift towards nuclear families, is a primary driver for housing demand.

• Government Support: Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) continue to fuel the sector. The Union Budget for 2024-2025 allocated significant funds for PMAY, targeting 30 million new houses by 2029. Interest subsidies and tax incentives further encourage homeownership.

• Under-penetrated Mortgage Market: India’s mortgage-to-GDP ratio stands at approximately 12.3%, which is low compared to developed markets. This under-penetration signifies a long runway for growth for housing finance companies, especially those focused on financial inclusion.

The affordable housing finance industry is poised for substantial growth, driven by strong structural demand, supportive government policies, and a largely untapped market.

• AUM Growth: The company has consistently delivered strong growth in its loan portfolio. AUM grew 20% YoY to ₹288 billion as of December 2025.

• Disbursement Growth: Loan disbursements increased by 15% YoY, reaching ₹65 billion in the first nine months of FY26, demonstrating continued business momentum and customer acquisition.

• Profit Growth: PAT has grown at a compound annual growth rate (CAGR) of approximately 27% from FY22 to FY25. For 9M FY26, PAT (adjusted for exceptional items) grew 20% YoY, showcasing sustainable profitability.

• Branch Expansion: The branch network has expanded from 520+ in FY24 to 621 as of December 2025, supporting the company's strategy of deepening its geographical reach and driving further business growth.

The company's growth trajectory is robust and consistent across key metrics, including its loan book, disbursements, and profitability, supported by its expanding physical presence.

• Stable Spreads: The company has successfully maintained stable spreads despite fluctuations in the interest rate environment. For 9M FY26, the spread between portfolio yield and cost of borrowings was 6.0%, an improvement of 16 basis points YoY.

• Portfolio Yield: The yield on the loan portfolio has remained consistent, standing at 13.7% in Q3 FY26. This reflects the company's ability to price its loans effectively within its target segment.

• Cost of Borrowings: The cost of borrowings has been managed effectively, declining to 7.7% in Q3 FY26 from 8.2% in FY25. This is a direct result of its diversified funding mix and strong credit rating.

• Efficiency Ratio: The Cost-to-Income ratio has shown consistent improvement, decreasing to 35.4% in 9M FY26. This downward trend indicates strong operating leverage and cost control as the business scales.

Aadhar demonstrates effective margin management through stable spreads, controlled borrowing costs, and improving operational efficiencies, which are critical for sustained profitability.

• Asset Quality: The company maintains stable and healthy asset quality. Gross Non-Performing Assets (GNPA) stood at 1.4% of AUM as of December 2025, a level that has been consistently maintained. Net NPA was 1.0%.

• Loan Security: The entire loan book is 100% secured, with an average Loan-to-Value (LTV) ratio of approximately 60%. This provides a significant security cushion against potential defaults.

• Provisioning: The company maintains adequate provisioning for potential credit losses. As of December 2025, the total ECL (Expected Credit Loss) provision was 1.2% of the gross loan portfolio. The provision coverage on Stage 3 assets (DPD > 90 days) is 32.4%.

• Customer Profile: Approximately 55% of the AUM is from salaried customers, who typically represent a more stable credit profile compared to self-employed individuals.

The company's risk profile is well-managed, characterized by stable asset quality, a fully secured loan portfolio with conservative LTVs, and adequate provisioning.

• Credit Rating Upgrade: The company's long-term credit rating was upgraded by CARE Ratings to 'AA+ / Stable'. This upgrade reflects the company's strong financial performance, stable asset quality, and robust capitalization, which should further improve its access to and cost of funding.

• Digital and Technology Transformation: Aadhar is heavily invested in its digital infrastructure. It has deployed an end-to-end core system from TCS and integrated with over 40 fintech partners. Key initiatives include a sales mobility app for faster customer onboarding (25-35 minute door-to-login time), digital collections (97% NACH conversion), and a customer service app, driving significant operational efficiencies.

• Advanced Analytics and AI/ML: The company is leveraging data science for strategic decision-making. This includes using AI/ML-based application scorecards for credit underwriting, predictive analytics for collections, geo-spatial analytics for branch expansion strategy, and risk-based pricing models to optimize yields and approval rates.

• Focus on Social Objectives: Aadhar continues to embed social goals into its core operations. This is demonstrated by its focus on EWS/LIG customers and CSR programs like Aadhar Kaushal (skill development) and Aayushmaan Aadhar (healthcare support), aligning business growth with social impact.

Key updates show a company that is strengthening its financial foundation through credit rating upgrades while simultaneously investing in a scalable, technology-driven operating model to drive future efficiency and growth.