Aadhar Housing Finance Reports 22% Rise in Q2 Disbursements and Secures AA+ Rating Upgrade

Affordable housing lender Aadhar Housing Finance Ltd has reported a 22 per cent year-on-year rise in loan disbursements, reaching ₹2,577 crore in the second quarter of FY27. The company registered steady growth across its financial metrics for the half-year ended September 30, 2026.

During the quarter, assets under management climbed 18 per cent year-on-year to ₹32,643 crore. Profit after tax rose 16 per cent to ₹308 crore for the quarter. When adjusted for employee stock option costs, profit after tax growth stood at 20 per cent for Q2 and 22 per cent for the first half of FY27. The company's net worth reached ₹8,201 crore.

The period also marked a significant credit rating milestone for the lender. India Ratings and ICRA upgraded Aadhar's long-term credit rating to AA+ with a stable outlook. This alignment across all three major rating agencies on a standalone basis is expected to broaden the company's access to funding sources.

Asset quality showed a marginal improvement during the period. Gross non-performing assets declined by 8 basis points year-on-year to 1.34 per cent of assets under management. The company's total loan account base crossed 348,000 as of September 30.

Financial efficiency indicators remained stable, with the return on assets holding at 4.2 per cent for the first half of FY27, while the return on equity eased slightly to 15.0 per cent.

MD and CEO Rishi Anand noted that the company added a new branch in Jammu during the quarter, expanding its physical network to 632 branches across 23 states and more than 555 districts. While pointing out that the current interest-rate environment and rising competition require continued vigilance, Anand maintained that structural demand for affordable housing finance remains intact.

Aadhar Housing Finance primarily operates in tier 2, tier 3, and semi-urban markets, focusing on economically weaker and low-income customer segments. The company maintains an average loan size of ₹11 lakh.

"Aadhar Housing Finance's performance highlights the sustained domestic demand within tier 2 and tier 3 markets for affordable housing. Securing an AA+ rating upgrade from major agencies is a notable positive development, as it will likely lower borrowing costs and diversify funding avenues for the lender. Maintaining asset quality alongside double-digit disbursement growth indicates disciplined underwriting practices in a competitive lending environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes