Aadhar Housing Finance Net Profit Climbs 16% to ₹308 Crore as Disbursements Surge

Shares of Aadhar Housing Finance climbed 1.63% to ₹438.25 on the National Stock Exchange after the retail mortgage lender posted a 15.7% rise in second-quarter net profit to ₹308.3 crore. Total income rose 16.8% to ₹1,048 crore, up from ₹897 crore during the corresponding quarter of the previous fiscal year. Underwriting momentum accelerated across small-ticket home loans. Institutional investors bid up the counter throughout the session.

Pre-provision operating profit rose 18% to ₹421.3 crore. But credit costs nearly doubled—provisions climbed to ₹24.2 crore from ₹13.2 crore a year earlier, reflecting a conservative buffer. Net profit was also dented by an extraordinary non-cash hit: a ₹14.2 crore pre-tax charge tied to the company's Employee Stock Options Plan 2025. Adjusted for this employee option cost, actual profit after tax reached ₹319 crore, delivering a 20% year-on-year expansion rather than the reported 16%.

Balance Sheet Expansion and Asset Quality

Loan disbursements leaped 22% year-on-year to ₹2,577 crore from ₹2,110 crore. That pushed total assets under management up 18% to ₹32,643 crore as of September 30, 2026. Asset quality showed steady improvement. Gross non-performing assets dropped 8 basis points to 1.34% of total assets under management, down from 1.42% twelve months ago.

Core lending revenue anchored the performance. Interest income from loan books climbed to ₹897.9 crore from ₹771.4 crore, while net interest income grew 18% to ₹658.8 crore, keeping pace ahead of finance costs that reached ₹389.1 crore. Operating expenses rose to ₹237.5 crore. Return metrics saw minor dilution as the equity base expanded—net worth rose 19% to ₹8,201 crore. Return on assets moderated by 10 basis points to 4.2%, and return on equity slipped to 15.2% compared with 15.7% a year ago.

Physical distribution continued its geographic push into underserved territories. The mortgage financier opened a new branch in Jammu during the quarter, widening its retail grid to 632 branches across 23 states and over 555 districts. With active loan accounts surpassing 3.48 lakh, the lender heads into the second half of the financial year backed by an expanded capital cushion and lower delinquencies.