Aadhar Housing's Asset Growth Surges as Stock Rises 47% Post-IPO

Key Financial Highlights of Aadhar Housing Finance (AHFL) IPO Performance:

up 47% since May IPO; 8% rise in past month despite market volatility.

Capital Raise: ₹1,000 crore raised at ₹315 per share in IPO; promoter stake reduced to 75.9% from 98.7%.

Network Reach: Largest affordable housing finance network in India, with 545 branches across 21 states/UTs.

Mortgage Products: Primarily housing loans, home improvement loans, and loans against property (LAP); average loan size ₹10 lakh.

Assets Under Management (AUM): Grew 21% to ₹22,817.5 crore as of September; housing loans 74%, LAP 24%.

Borrower Demographics: Salaried (56%) vs. Self-employed (44%); expected increase in LAP and self-employed borrowers.

Income and Profit Growth: Total income rose 21% to ₹1,477.4 crore; net profit grew 24% to ₹427.7 crore.

Profitability Metrics: Net interest margin at 9.1%; Return on Assets at 4.2%.

Asset Quality: GNPA ratio improved by 10 basis points to 1.3%.

Analyst Rating: JM Financial gives a ‘buy’ rating with a 12-month target price of ₹600; stock last traded at ₹464 on BSE.

Expanding Reach in Affordable Housing Finance

Blackstone-backed Aadhar Housing Finance (AHFL) has reinforced its position as India’s leading affordable housing loan provider with a significant 47% gain since its IPO in May. Analysts attribute this growth to the company’s large network and the government’s strong push for affordable housing.

Strategic Capital Raise to Support Growth

Following its May IPO, AHFL raised ₹1,000 crore to strengthen its capital base, adjusting the promoter stake to 75.9%. This move sets the company up for continued expansion and investment in new housing finance initiatives.

Robust Asset and Income Growth

AHFL reported a 21% growth in assets under management (AUM) to ₹22,817.5 crore by the September quarter-end, driven largely by housing loans and a growing preference for loans against property (LAP). Management anticipates further shifts toward LAP due to better yields and stronger returns.

Profitable Growth Despite Rising Borrowing Costs

In the first half of FY25, AHFL’s net profit increased by 24% to ₹427.7 crore, with a net interest margin of 9.1% and return on assets at 4.2%. This performance was achieved despite a 40 basis-point increase in borrowing costs, showcasing efficient cost control and operational stability.

Continued Confidence in Stock Performance

JM Financial has maintained a ‘buy’ recommendation on AHFL, highlighting its pan-India presence, steady asset growth, and robust technology platform. The brokerage set a 12-month target price of ₹600, underscoring investor confidence in AHFL’s future trajectory. The stock closed at ₹464 in its latest BSE session.