Aadhar Housing Finance Limited — PPTs, 06-05-2025: Investor Presentation

1. Financial Highlights:

Aadhar Housing Finance’s AUM grew 21% YoY to ₹25,530 Cr, with disbursements up 16% to ₹8,192 Cr. Profit after tax rose 22% YoY to ₹911 Cr, supported by a 9.1% Net Interest Margin (up 18 bps) and a 4.3% return on assets. Asset quality remains robust with GNPA steady at 1.05%. Operating efficiency improved with a 104 bps reduction in cost-to-income ratio. Borrowings increased to ₹16,322 Cr, backed by ₹640 Cr net worth and a strong Tier I capital adequacy ratio of 44.1%. The secured retail loan book maintains about 59% LTV.

2. Strategic Initiatives & Growth Drivers:

Aadhar’s digital-first model enables loans to be processed in 25-35 minutes via paperless onboarding and 97% digital collections, built on a scalable TCS platform. Expansion is focused on underserved Tier 4 & 5 towns through “Deep Impact” branches targeting sub-₹15 lakh ticket sizes. Integration with fintech partners and AI/ML underwriting tools aim to boost credit approvals and risk assessment. Increasing NHB refinancing and long-term borrowings lowers funding costs.

3. Business Developments:

No new acquisitions or partnerships. Geographic footprint expanded to 21 states/UTs with 580 branches, including new operations in Himachal Pradesh and Assam. Strong backing from Blackstone and an experienced management team support scaling, digital enhancements, and governance improvements.

4. Market Position & Competitive Advantage:

Aadhar leads the low-income housing finance sector with a granular AUM profile skewed 56% toward salaried customers. Its pan-India presence across 545 districts, diversified lending, disciplined underwriting, positive ALM, multiple AA/stable ratings, and solid governance create a strong competitive moat in affordable housing finance.

5. Investor Implications:

Robust growth in AUM and profitability, stable asset quality, and operational efficiencies highlight positive growth potential. Technology investments and diversified funding reduce execution risks while enabling scalable expansion in an underpenetrated affordable housing market, making the company attractive for long-term investors.