Aadhar Hsg. Fin. Q1 FY27 Results (NSE: AADHARHFC)
Signal: Earnings grew
The read
Q1FY27 PAT grew 19% YoY on 17% revenue growth, driven by 23% NII expansion as cost of funds was tightly managed; asset quality stable (GNPA 1.32%, PCR improved to 34.1%). However, QoQ NIM compressed ~10bps and costs outpaced revenue growth, suggesting slight margin pressure from rising borrowing costs. The exceptional item (₹1,592 lakh labour code impact) was booked in FY26, so Q1FY27 is clean.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹992.89 Cr | 17.1% | -73.0% |
| EBIT | ₹740.02 Cr | 16.2% | |
| Net profit | ₹282.36 Cr | 19.0% | |
| EPS | ₹6.47 | 17.6% | |
| EBIT margin | 0% |
P&L walk
Revenue +17% YoY driven by loan growth; NIM compressed ~10bps QoQ as finance costs rose faster than interest income; credit cost remained well-behaved at 0.8% of loans; PAT grew 19% YoY aided by lower tax rate and controlled opex.
Segments
Single segment – Housing Finance (Financial Services); all operations are incidental to the core lending business. No other reportable segments.
Key positives
- NII grew +22.8% YoY, faster than revenue, indicating effective spread management.
- Asset quality stable: GNPA unchanged at 1.32%, PCR improved to 34.12% from ~32% (sequential improvement).
- CRAR of 43.39% provides strong buffer for growth; debt-to-equity at 2.36x is moderate.
- PAT growth of 19% YoY in line with 3-year CAGR of 21.6%, showing consistent earnings trajectory.
Key concerns
- Cost-to-income rose as employee benefits grew +27% YoY (includes ₹1,399 lakh ESOP charge); opex growth is outpacing revenue growth.
- QoQ NIM compressed ~10bps, signalling rising cost of borrowings may pressure spreads.
- EPS growth (17.6%) lagged PAT growth (19.0%) due to ESOP-related equity dilution.
- Impairment on financial instruments rose 18.5% YoY, broadly in line with AUM growth but a headwind if asset quality weakens.
Research and educational content only. Not investment advice.