Target: ₹650
CMP: ₹501.50
Aadhar continues to exhibit robust execution across growth, asset quality, and profitability, maintaining a significant scale with an assets under management (AUM) of ₹30,500 crore. The company’s profit after tax (PAT) reached ₹310 crore, reflecting a 27% increase year on year.
AUM experienced a 20% growth driven by a similar increase in disbursements, particularly in home loans, although loan against property (LAP) growth remained subdued. Management expressed a cautious outlook on LAP given current macroeconomic uncertainties and has set a target to increase AUM to ₹50,000 crore within the next three years, suggesting a compounded annual growth rate (CAGR) of over 18%.
The firm is well-positioned to sustain its spreads, propelled by the potential for growth in non-home loan segments, which accounted for 27% of AUM as of March 2026. Additionally, there has been an expansion in tier-3 markets and beyond. Management reported no significant stress within their customer base attributed to geopolitical tensions stemming from the West Asia conflict.
Asset quality indicators remain strong, highlighted by a decline in credit costs by 11 basis points quarter on quarter to 0.1%, and a notable improvement in net slippages on a quarterly basis. Aadhar’s geographic diversification and operational efficiency contribute to its consistent performance. The company has also made enhancements in distribution, increasing its branch count by 8% year on year to a total of 626 branches.
As a result of lower credit costs, Aadhar has adjusted its PAT estimates upward by 2-4% for FY27 and FY28. Projections indicate AUM growth at a CAGR of 19% alongside a return on equity (ROE) of 17% over the period FY26-29. Current valuations stand at 2.2 times price-to-book (P/B) for FY28 and 14 times price-to-earnings (P/E) for FY28, which are considered attractive. The target price is set at ₹650.
Published on May 7, 2026
