Broker’s Call: Aptus Value, Aadhar Housing Fin (Outperform)

Why It Matters

The upgrades highlight accelerating growth and stabilising credit metrics in India’s affordable‑housing finance space, offering investors a compelling entry amid a sector correction.

Key Takeaways

• Aptus EPS up 25% YoY, outpacing peers
• Aptus targets ₹25,000 cr AUM by FY29
• Aadhar adds 40‑50 branches, keeps geography diversified
• Both firms maintain Outperform ratings despite sector sell‑off
• AHFC asset quality shows early signs of improvement

Pulse Analysis

Aptus Value Housing Finance is emerging as a standout player in India’s affordable‑housing finance market. With earnings per share climbing 25% year‑on‑year and a return on assets hovering between 7.3% and 7.4%, the firm outperforms larger NBFC rivals. Its cost‑to‑income ratio of roughly 20% underscores operational efficiency, while a revised AUM growth target of 22‑24% and a FY29 ambition of ₹25,000 cr (about $3.0 bn) signal aggressive scaling. The planned rollout of 60‑70 new branches in FY27 will broaden its footprint into untapped states, positioning Aptus for sustained loan disbursement growth.

Aadhar Housing Finance, meanwhile, is leveraging a diversified geographic mix to mitigate regional concentration risk. The lender’s AUM expanded 21% YoY in Q3‑26, aligning with its historical pace, and management projects 18‑20% growth for FY27. By adding 40‑50 branches and maintaining no single state above 15% of its portfolio, Aadhar reduces exposure to localized economic shocks and micro‑finance stress. Its limited direct micro‑finance exposure further insulates the balance sheet, supporting a healthier asset‑quality outlook as delinquency trends begin to stabilize.

The broader affordable‑housing finance segment is at a pivotal juncture. Macro‑level concerns have pressured Indian banks and NBFCs, yet the sector’s secured loan base, longer‑tenor funding, and access to National Housing Bank liquidity provide a resilient liability profile. Recent data indicate a modest rebound in disbursement growth and early signs of credit‑quality improvement, suggesting an inflection point that could unlock valuation upside. For investors, the combination of robust earnings growth, disciplined cost structures, and strategic branch expansion makes Aptus and Aadhar attractive bets in a market poised for a recovery.