Aadhar Hsg. Fin. Q2 FY27 Results (NSE: AADHARHFC)
Signal: Earnings grew
The read
The operating trajectory remains growth-led: Q2 disbursements rose 22% YoY to ₹2,577 crore and AUM rose 18% to ₹32,643 crore, while GNPA improved 8bps to 1.34%; however, reported PAT growth was limited to 16% by the ₹14.2 crore pre-tax ESOP charge, versus 20% on an adjusted basis.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Net profit | ₹308 Cr | +16% | |
| EBIT margin | 0% |
P&L walk
Reported PAT was ₹308 crore, up 16% YoY; the filing attributes the gap versus 20% adjusted PAT growth to a ₹14.2 crore pre-tax Q2 ESOP charge, while no revenue, operating-profit or EPS statement lines were disclosed.
Key positives
- Q2 disbursements grew 22% YoY to ₹2,577 crore, exceeding the company's 20%+ Q2-Q4 disbursement-growth commitment for this phase of FY27.
- AUM increased 18% YoY to ₹32,643 crore; management stated that adjusting for the cheque-realisation reporting change, AUM growth was 20% YoY.
- GNPA improved 8bps YoY to 1.34%, indicating growth was accompanied by stable-to-improving asset quality.
- Adjusted PAT grew 20% YoY to ₹319 crore after excluding the ₹14.2 crore pre-tax Q2 ESOP charge.
- The branch network expanded to 632 branches across 23 states and more than 555 districts, including a new branch in Jammu.
Key concerns
- Reported PAT growth of 16% to ₹308 crore was 4 percentage points below adjusted growth because of the ₹14.2 crore pre-tax ESOP charge.
- ROA declined to 4.2% from 4.3% YoY and ROE declined to 15.2% from 15.7% YoY, showing mild profitability compression despite 18% AUM growth.
- Management identified the evolving interest-rate environment and heightened competition as risks requiring continued vigilance.
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