Aptus Value Hou. Q1 FY27 Results (NSE: APTUS)
Signal: Earnings grew
The read
Aptus delivered a steady quarter: consolidated PAT +19% YoY on +15% revenue growth, with operating cost discipline (finance costs +5.8% vs revenue +15.2%) supporting margins. However, credit cost surged 103% YoY to ₹21.5 Cr — partially from stressed loan sale to ARC (₹4,146.46 lakh transferred, loss of ₹374.94 lakh). Standalone performance was cleaner (PAT +24.6%, provisions -38% YoY). The divergence suggests the subsidiary is driving higher provisioning, which bears watching in coming quarters. GNPA stayed stable at 1.42%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹610.65 Cr | 15.2% | 3.0% |
| EBIT | ₹329.09 Cr | 15.2% | |
| Net profit | ₹260.94 Cr | 19.0% | |
| EPS | ₹5.21 | 18.7% |
P&L walk
Revenue growth led by strong 55% jump in gain on derecognition; PAT grew faster than revenue due to slower finance cost growth (+5.8% vs revenue +15.2%), but credit cost doubled to ₹21.49 Cr (+103% YoY) signalling slippage normalization.
Segments
Single-segment housing finance — no segment breakdown. Note: consolidated PAT includes subsidiary Aptus Finance India Private Ltd (total income ₹18,519.01 lakh, PAT ₹6,821.70 lakh). Standalone-vs-consolidated divergence: credit cost on consolidated doubled YoY to ₹21.49 Cr vs standalone fell 38% to ₹5.58 Cr — higher provisioning at the subsidiary level (potentially from the stressed loan sale of ₹4,146.46 lakh to ARC) is the key drag.
Key positives
- Consolidated PAT grew +19% YoY to ₹260.94 Cr, outpacing revenue growth of +15.2%.
- Finance costs grew only +5.8% YoY vs total income +15.2%, demonstrating stable cost of funds and operating leverage.
- Net gain on derecognition of financial instruments (loan assignments) surged +55.2% YoY to ₹48.99 Cr — a key fee-income driver.
- Standalone PAT grew +24.6% YoY with credit cost declining -38.4% YoY, reflecting improving asset quality at parent level.
- GNPA steady at 1.42% and NNPA at 1.07%, with liquidity coverage ratio high at 187.87%.
- ESOP dilution minimal (0.05% of equity) — EPS growth in line with PAT growth.
Key concerns
- Consolidated impairment on financial instruments doubled (+103% YoY) to ₹21.49 Cr, a meaningful jump from ₹10.59 Cr a year ago.
- Consolidated PAT was flat sequentially (₹260.94 Cr vs ₹260.95 Cr in Q4FY26), as higher credit cost offset revenue growth.
- Employee costs grew +26.9% YoY — significantly ahead of revenue growth — indicating branch/headcount expansion that may weigh on margins if growth decelerates.
- Stressed loan sale to ARC (536 accounts, ₹41.46 Cr) with a loss of ₹3.75 Cr suggests some asset quality stress in the loan book.
- Net profit margin (standalone) at 45.01% is high but flat; any normalization of credit cost could pressure margins.
Research and educational content only. Not investment advice.