Aadhar Housing Finance Limited — Investor Meet, 11-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Aadhar Housing Finance has delivered impressive results for Q3 FY25, achieving an AUM of ₹23,976 crore, reflecting a robust year-over-year growth of 21%. The corresponding profit after tax rose by 22% YoY to ₹667 crore for the nine months, with Q3 profit at ₹239 crore, up from ₹204 crore last year. Notably, disbursements stood strong at ₹2,094 crore, a 20% increase YoY, while the GNPA improved to 1.36%, indicating solid asset quality.

**Future Outlook and Growth Drivers:** Management remains optimistic amid an upward trend in the housing finance sector, projecting a growth rate of 16% to 17% for FY25-26. Key growth drivers include the anticipated surge in affordable housing demand, bolstered by favorable government initiatives such as the recent budget allocations aimed at supporting low- and middle-income borrowers.

**Order Book and Operational Updates:** The company added 12 branches in Q3, totaling 34 branch openings in the first nine months of FY25. This deeper market penetration into Tier 4 cities has expanded Aadhar's customer base to over 286,000, with a focus on secured retail loans.

**Analyst Q&A Insights:** Discussions revealed analytical queries regarding credit costs and asset quality. Management indicated a modest increase in credit costs due to slippages in Stage 2 assets, predicting an overall NPA improvement to around 1.1% by March. Analysts inquired about competitive pressures and operational risks, to which management stated their positions as a 100% secured retail lender, minimizing exposure to unsecured loans.

**Market or Regulatory Updates:** The call highlighted comprehensive government support for affordable housing, notably the ₹15,000 crore SWAMIH fund aimed at resolving stalled projects and improving buyer confidence. The PMAY scheme’s efficacy remains a focal point for driving disbursement.

**Strategic Focus Areas:** Aadhar’s strategy emphasizes technological advancement and branch expansion, with a clear goal to maintain operational efficiency while enhancing customer service through digital solutions.

**Investor Insight:** Given Aadhar’s solid financial performance and strategic positioning within the growing affordable housing sector, a position of interest in shares is warranted. The company's focus on sustainable growth metrics while managing potential risks enhances its profile as a compelling investment opportunity.