Future Outlook: Housing Finance stock with 20–22% AUM growth to keep an eye

Synopsis: The company expects H2 FY26 to outperform H1, 20–22% AUM growth, plans to pass on rate cuts by end-Q3, remains capitalized for 2.5–3 years, sees demand for 3 crore housing units, and guides gross NPAs at 1.15–1.1%.

This company is among India’s largest low-income housing finance companies, catering to the home financing needs of economically weaker sections of society is now in focus after asset quality remains a key focus, with the company guiding gross Non-Performing Assets (NPA) for FY26 in the range of 1.15–1.1%

With a market capitalisation of Rs. 21,039 cr, the shares of Aadhar Housing Finance Ltd are currently trading at Rs. 485 per share, jumping 1.5% in today’s market session, making a high of Rs. 488.30, up from its previous close of Rs. 480.80 per share.

Guidance

The company expects the second half of FY26 to outperform the first half, staying on track for 20 to 22% growth in Assets Under Management (AUM). Alongside this, it plans to pass on interest rate cuts to customers by the end of Q3, demonstrating its commitment to competitive offerings.

Financially, the company remains well-capitalized, with sufficient resources to support operations for the next 2.5 to 3 years, ensuring stability and flexibility for strategic initiatives. In terms of market opportunities, government initiatives in the affordable housing sector are expected to create demand for an additional 3 crore housing units, presenting significant growth potential.

The company continues to prioritize asset quality, with guidance for gross Non-Performing Assets (NPA) for FY26 set at 1.15–1.1%. This reflects a disciplined approach to risk management while positioning the company for sustainable growth.

About the company 

Aadhar Housing Finance Ltd (AHFL) is a prominent Indian housing finance company focused on providing affordable home loans to underserved and low‑to‑middle‑income segments, particularly the Economically Weaker Section (EWS) and Low Income Group (LIG) across semi-urban and rural India.

It demonstrates strong financial efficiency with an ROCE of 11.4% and an ROE of 16.9%. The company has delivered impressive profitability growth, achieving a 36.6% CAGR in net profit over the last five years.

As of Q2FY26, the company reported robust financial growth. Its sales rose 17% year-on-year to Rs. 897 crore from Rs. 764 crore in Q2FY25. EBITDA increased 18% to Rs. 689 crore, up from Rs. 584 crore a year ago. Net profit grew 17% to Rs. 266 crore, compared with Rs. 228 crore in Q2FY25, translating to an EPS of Rs. 6.15, up 16% from Rs. 5.29 last year. 

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