Aadhar Housing Finance Ltd · NSE:AADHARHFC
Aadhar Housing Finance — Q4 FY25 Earnings Presentation
43 slides from Aadhar Housing Finance's earnings presentation, May 6, 2025
Slide 1: Covering letter to stock exchanges
Date: 06th May, 2025 To, To, The General Manager, Sr. General Manager BSE Ltd. P. J. Towers, Dalal Street, National Stock Exchange of India Limited Mumbai- 400001 Exchange Plaza, C-1, Block G, Bandra Kurla Scrip Code: 544176 Complex Bandra (E), Mumbai – 400 051 Symbol: AADHARHFC Kind Attn.: Listing
Slide 2: Aadhar Housing Finance Limited Investor Presentation Q4 & FY25
Aadhar Housing Finance Limited Investor Presentation Q4 & FY25
Slide 3: Disclaimer
DISCLAIMER The information contained in this presentation is provided by Aadhar Housing Finance Limited (“Aadhar” or the “Company”), to you solely for your reference. Any reference herein to the “Group” shall mean Aadhar Housing Finance Limited, together with its subsidiaries / joint ventures/ affil
Slide 4: Performance Snapshot
PERFORMANCE SNAPSHOT Investor Presentation 2
Slide 5: FY25 Key Highlights (YoY Change)
Aadhar Housing Finance FY25 Key Highlights (YoY Change) AUM Disbursements ₹ 255,307 Mn +21% ₹ 81,921 Mn +16% PAT ROA ₹ 9,118 Mn +22% 4.3% +11bps GNPA NIM 1.05% -3bps 9.1% +18bps Investor Presentation 3
Slide 6: Aadhar Housing Finance Key Highlights
Aadhar Housing Finance Key Highlights Scale INR255bn INR 9.1 bn FY25 PAT 299k March-25 AUM (100% Secured Retail Book) INR 64 bn Net worth Live accounts Asset quality HFC focused on 1.05% c.59% c.56% low-income GNPA (Mar-25) LTV1 (Mar -25) AUM to salaried customers (Mar-25) housing segment in India,
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Investor Presentation 5
Slide 8: Strong Growth in AUM and Disbursements
Strong Growth in AUM and Disbursements AUM – By Product (INR Mn) : Growth of 21% in FY25 on YoY Disbursement – By Product (INR Mn) : Growth of 16% in FY25 on YoY 81,921 2,55,307 70,724 59,026 23,449 2,11,209 20,203 67,126 1,72,228 16,974 1,47,767 53,258 39,916 37,635 26,849 8,751 58,473 1,88,181 50,
Slide 9: Stable Yields and Spreads
Stable Yields and Spreads Yields, Cost of Borrowings and Spreads (%)* 13.9% 13.9% 13.9% 14.0% 14.0% 13.9% 13.9% 13.1% 13.0% 13.4% 8.0% 8.2% 8.0% 8.0% 8.1% 8.1% 8.2% 7.7% 7.6% 7.0% 6.0% 5.8% 5.9% 5.7% 5.9% 6.0% 5.9% 5.8% 5.7% 5.4% FY21 FY22 FY23 FY24 FY25 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Portf
Slide 10: Consistent Improvement in Asset Quality and Efficiency
Consistent Improvement in Asset Quality and Efficiency Asset Quality Metrics – GNPA Improved by 3bps in FY25 on a YoY basis Cost to Income – FY25 Improved by 104bps compared to FY24 1.1% 0.8% 0.7% 0.7% 38.1% 37.5% 36.3% 36.4% 1.5%* 1.2%* 1.1% 1.1% FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 40.8% 1.1% 0
Slide 11: Strong Profitability and Returns
Strong Profitability and Returns Profit after Tax Increased by 22% in FY25 on YoY basis Return on Assets Improved by 11bps in FY25 on YoY basis 31 37 44 64* 3.2% 3.6% 4.2% 4.3% 9,118 7,496 18.4% 16.9%* 15.2% 16.5% 5,643 4,449 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 31 37 44 64* 4.3% 4.1% 4.4% 4.4% 4
Slide 12: Company Overview
COMPANY OVERVIEW Investor Presentation 10
Slide 13: Introduction to Aadhar Housing Finance
Introduction to Aadhar Housing Finance HFC focused on low-income Pan-India presence with 580 housing segment with ticket Granular portfolio skewed branches covering 545 districts across 100% secured retail loan book towards Salaried customers; size less than INR1.5mn, with 21 states and union territ
Slide 14: Aadhar Housing Finance – Value Proposition
Aadhar Housing Finance – Value Proposition Focused on low-income housing segment1 Diversified and granular portfolio Extensive branch and sales office network Access to diversified funding with geographical penetration across India sources, positive ALM position Robust, analytics driven Scalable tec
Slide 15: Key Milestones
Key Milestones Customer base crossed 1,50,000; Year of Acquired by the Incorporation of Blackstone Branches Pre-merger AHFPL Group1 in June 580 FY11 FY20 2019 Branches FY25 Pre-merger Pre-merger AUM of INR 520+ AHFPL2 opened its AHFPL opened AUM stood at 255 Bn 1st branch FY17 100th branch AUM of IN
Slide 16: Highly Experienced Board of Directors
Highly Experienced Board of Directors O.P. Bhatt, Deo Shankar Tripathi, Non-Executive Chairman & Independent Director WTD1 and Executive Vice Chairman Former Chairman of State Bank of India Previously acted as MD & CEO of the Company Serves as a Director on the boards of HUL, Tata Motors, Greenko En
Slide 17: Seasoned Management Team
Seasoned Management Team Anmol Gupta, Chief Treasury Officer Nirav Shah, Chief Risk Officer ▪ Several years of experience in financial operations, preparing ▪ Several years of experience in implementing risk management budgets, financial reports systems across business units & maintaining a strong i
Slide 18: Business Overview
BUSINESS OVERVIEW Investor Presentation 16
Slide 19: Pan-India Presence
Pan-India Presence Distribution Network Branch Distribution Top 2 States by AUM Others UP Top 5 States by AUM 17% 12% Other States with Presence By State (Mar 31, 2025) States not present in MH KTK 12% 580 Branches1 6% Mar-25 Uttar Pradesh 580 MP 72 Branches 8% Branches GJ 12% AP 7% Rajasthan TL TN
Slide 20: Distribution Strategy
Distribution Strategy Agile branch network with each location catered to by an appropriate branch size, helping keep Opex in control Deep Ultra Deep Impact Micro Impact Branch Main Branches Small Branches Micro Micro Branch Branch AMs Micro Branches Ultra Ultra-Micro Small Main Small Ultra Micro Mic
Slide 21: Comprehensive Credit Assessment Process
Comprehensive Credit Assessment Process Centralized processing at regions –Salaried Customers Decentralized processing – other customers Regional processing units to process applications Branch led processing through credit managers for salaried customers Credit On-ground verification of business an
Slide 22: Diversified Funding Sources
Diversified Funding Sources Increasing focus on diversifying borrowings NHB Continue to increase share of NHB refinancing and rely on long term sources of borrowings ECB Others Banks 3% 1% 62% NCD NCD 21% 21% Banks 53% Banks Mar-21 Mar-25 NHB 16% NHB 23% 56 Mutual Funds 50 37 38 39 8.0% 8.4% 20 22 6
Slide 23: ALM Position
ALM Position Positive ALM Position Across Buckets Asset Liability Management – INR bn (as on Mar-25) 76% of Gross AUM and 79% of borrowings have floating interest rates 346.9 287.0 253.7 181.6 192.2 141.7 85.6 61.5 59.9 51.9 33.7 39.8 Upto 1 year Upto 3 years Upto 5 years Total 1 2 Assets Liabilitie
Slide 24: Social Objectives at the Core of the Business
Social Objectives at the Core of the Business Portfolio focused on EWS / LIG segments AUM focused on EWS / LIG Customers 66% 81% 80% 76% 71% 66% Home Gross AUM with Aspirations EWS/LIG customers FY21 FY22 FY23 FY24 FY25 Aadhar Mitras / Mahila Aadhar Mitras Overview of various CSR activities Socially
Slide 25: Tech Capabilities
TECH CAPBILITIES Investor Presentation 23
Slide 26: Digital-First Operating Model
Digital-First Operating Model End-to-End TCS-Enabled Core System Digital Acquisition Digital Processing 25-35 mins 100% Door-to-Login Time Paper-less Onboarding Digital Collections Digital Servicing 97% 129,000+ NACH Conversion Customer App Logins 40+ Fintech Integrations Investor Presentation 24
Slide 27: Agile Digital Infrastructure
Agile Digital Infrastructure Scalable Technology Platform Developed by TCS enabling smooth and agile Digital Processes Lending and Securitization Platform 1 Digital Onboarding 2 Loan Origination 3 Loan Servicing 4 Collection Management ■ Digitizing loan life cycle management ■ Enabling credit team t
Slide 28: IT Platform augmented with Digital Capabilities
IT Platform augmented with Digital Capabilities Digital Acquisitions ✓ Digitized Lead Generation – Various Aggregator Sources 3 ✓ Digital Customer Onboarding via Sales Digital Servicing Mobility App ✓ Digital Onboarding of Channel Partners ✓ Customer Service Mobile App ✓ Geo-Tagging for effective ro
Slide 29: IT Platform augmented with Digital Capabilities
IT Platform augmented with Digital Capabilities DIGITAL ACQUISITION DIGITAL PROCESSING DIGITAL SERVICING Digital Welcome Kit Lead Generation Karza → PAN, Aadhaar, EPFO Verifications CRIF → Multi Bureau Verifications Anur Cloud CSC iXsight → Dedupe Engine Novel Pattern → Bank Aggregator & Analyzer IP
Slide 30: Technology Architecture
Technology Architecture D D I I Prospects Customers Aadhar Mitra Channel Partner Vendors Sales Users Collections Users Call Centre Users G G Aadhar Customer Fintech Sales On The I I Lead Verification Collections - Website / Service- Partner Go- Mobile CRM Service T T Generation Portal Mobile App Por
Slide 31: Extensive Suite of Applications
Extensive Suite of Applications Robust customer engagement and partner empowerment through mobility apps; Focus on consistently improving employee experience through virtual office Sales Mobility App Employee Super App Customer Service Collections App Faster onboarding of Integrated HR app for all c
Slide 32: AHFL Customer Service App
AHFL Customer Service App 1.25+ Lakhs Downloads Online Payment & Service English & Hindi Languages ~ 7500 MAU (Monthly Both Android & IOS Online Customer Request Active Users) Enhance Customer Customer Mobile Customer Adoption App Experience Customer Penetration Customer Rating 1,25,000+ 4.1 Investo
Slide 33: Business Transformation through Data Science
Business Transformation Credit Risk Underwriting ■ Application scorecards for credit underwriting through Data Science ■ Automatic rejection of non-creditworthy loan applicants Collections Analysis Asset Quality & Risk Management ■ Predictive analytics to identify high risk customers Strengthening r
Slide 34: Data & Analytics Maturity: In Sync with Organizational Growth
Data & Analytics Maturity: In Sync with Organizational Growth The first 4 years (FY22-FY25) the focus was to widen the coverage across verticals through descriptive and diagnostic analytics. Going forward, the strategy shifts to deepening this coverage and advancing data science maturity with a focu
Slide 35: Industry Overview
INDUSTRY OVERVIEW Investor Presentation 33
Slide 36: Affordable Housing Finance Market in India: Opportunity Size
Affordable Housing Finance Market in India: Opportunity Size • Urban areas are projected to host 40% of India's population by 2030 from current 36% leading to a rise in Affordable housing in urban areas • An expected shortage of affordable housing units is expected to be 32.3 Mn by 2030 which includ
Slide 37: Key Growth Enablers
Key Growth Enablers Government Initiatives’ Changing Dynamics Market Penetration Focus on Financial Inclusion Impact on Housing Finance Opportunities • Increased allotment for Housing Schemes: The • Urbanization: Migration to cities drives • Low Mortgage-to-GDP Ratio: At Union Budget for 2024–2025 p
Slide 38: Financial Information
FINANCIAL INFORMATION Investor Presentation 36
Slide 39: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Particulars (INR Mn) Q4 FY25 Q4 FY24 YoY Q3 FY25 QoQ FY25 FY24 YoY Interest on loans 6,943.0 5,691.4 6,757.5 26,018.3 21,539.0 Other Interest and Investment Income 350.1 347.8 325.5 1,394.0 1,436.3 Non-Interest Income 556.2 508.7 457.9 2,006.3 1,685.6 Net gain
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INRmn) March 31st, 2025 March 31st, 2024 Sources of Funds Share capital 4,314 3,948 Reserves and surplus 59,409 40,550 Borrowings 1,63,224 1,39,596 Trade payables & Other Liabilities 5,146 6,837 Derivative Financial Instruments 147 - Total 2,32,240 1,90,931 Ap
Slide 41: ECL Provisions
ECL Provisions Particulars (INR Mn) March 31st, 2025 December 31st, 2024 March 31st, 2024 Gross Stage 1 196,774 184,284 163,054 % portfolio in Stage 1 94.9% 94.8% 95.3% ECL Provision Stage 1 594 583 538 ECL Provision % Stage 1 0.3% 0.3% 0.3% Gross Stage 2 8,269 7,406 6,189 % portfolio in Stage 2 4.0
Slide 42: Glossary
Glossary Terminology Definition Terminology Definition ALM Asset Liability Management LIH Low Income Housing AM Aadhar Mitra LTV Loan to Value ATS Average Ticket Size NBFC Non-Banking Financial Company AUM Assets Under Company’s Management NCD Non-Convertible Debenture CAGR Compounded Annual Growth
Slide 43: Thank You
For further information, please contact Sanjay Moolchandani – Head of FP&A Sanjay.Moolchandani@aadharhousing.com THANK YOU Investor Relations – Aadhar Housing Finance Limited investorrelations@aadharhousing.com Adfactors PR – Investor Relations Snighter Albuquerque / Aashvi Shah Snighter.a@adfactors
Aadhar Housing Finance — Q4 FY25 Earnings Presentation on 6ix