Transcript of the earnings conference call for the financial year ended March 31, 2025.
Awaiting price reaction for this filing.
Aadhar Housing Finance reported strong FY'25 results with AUM crossing INR 25,531 crores, a 21% YoY growth, becoming the first low-income housing finance company to cross the INR 25,000 crore mark. Disbursements grew 16% YoY to INR 8,192 crores, while full-year PAT rose 22% to INR 912 crores and Q4 PAT grew 21% YoY to INR 245 crores. Asset quality improved with GNPA at 1.05% (down 3 bps YoY) and collection efficiency above 100%. Cost-to-income ratio fell sharply to 36.4% from 37.5%, exceeding the guided 80-100 bps reduction with a 104 bps improvement. The company diversified borrowing with its first ECB of US$50 million at SOFR+156 bps (hedged cost ~8.1%); overall borrowing mix is 53% banks, 23% NHB, 21% NCDs, 3% ECB, with exit cost of funds at 8.2%.
Management guided FY'26 AUM growth of 20-21%, disbursement growth of 18-19%, PAT growth of 20-21%, and GNPA of 1.10-1.15%, alongside a further 30-50 bps cost-to-income reduction. This combination of steady growth, improving cost efficiency, and stable margins is likely to be viewed positively by investors, though competition in urban markets remains a watchpoint.