Company Overview

Aptus Value Housing Finance India Limited reported strong financial performance for FY2025-26, achieving 26% growth in consolidated net profit to ₹943 crore (₹94,294.39 lakhs) from ₹751 crore in the previous year. The company maintained robust operational metrics with Return on Equity reaching 20.1% and Assets Under Management growing 21% to ₹13,107 crore.

Financial Performance Highlights

Income Statement: Total income increased 25% to ₹2,245 crore, driven by interest income of ₹2,192 crore. Profit before tax grew 24% to ₹1,211 crore, while tax expense stood at ₹268 crore. The 5-year PAT CAGR remained strong at 29%.

Balance Sheet: Total assets reached ₹13,04,765.73 lakhs, with loans net of impairment at ₹11,92,952.13 lakhs (12% growth). The company maintained exceptional capital adequacy with CRAR of 71.04% (more than 4x regulatory requirement) and net worth of ₹5,060 crore.

Key Ratios: Net Interest Margin improved to 13.3% of average AUM, gross spread expanded to 8.9%, yield on advances stood at 17.2%, while cost of borrowings declined to 8.3%. Asset quality showed some pressure with Gross NPA at 1.52% and Net NPA at 1.15%, primarily due to NBFC subsidiary's Small Business Loan portfolio.

Operational Performance

Branch Network: The company expanded to 339 branches across 6 states and 1 Union Territory, adding 39 new branches during FY26 with plans for approximately 65 new branches in FY27. Geographic presence includes Andhra Pradesh, Tamil Nadu, Telangana, Karnataka, Maharashtra, Odisha, and Puducherry.

Strategic Initiatives: Aptus strategically discontinued all loan sanctions below ₹5 lakh from July 2025 to improve portfolio quality. The company achieved record Q4 FY26 disbursements, growing 17% YoY and 21% QoQ. Active customer base reached 1,87,889, representing 16% growth.

Digital Transformation: The company accelerated digital adoption with 92.3% digital agreements, 94% digital collections through Bharat Bill Pay and other platforms, 100% E-NACH penetration, and 82.3% account aggregator usage in underwriting. Customer app enrollment reached 99.5%.

Funding & Capital Structure

Borrowing Profile: Consisted of 57% bank borrowings, 9% National Housing Bank funding, 16% Non-Convertible Debentures (subscribed by major mutual funds), and 18% securitization/direct assignment. The company maintained ₹2,500 crore undrawn sanctioned credit lines as liquidity buffer.

Credit Rating Upgrades: Both ICRA and CARE upgraded the company to AA Stable from AA- (Stable/Positive), driven by strong financial profile, governance quality, and consistent operating model, supporting reduced borrowing costs.

Capital Actions: The company allotted 928,598 equity shares under ESOP scheme and issued ₹5,000 million in NCDs across four private placements. Dividend of ₹3.50 per equity share was declared through two interim payments.

Corporate Governance & Compliance

Board Changes: Mr. Sumir Chadha and Mr. K P Balaraj resigned as Non-executive Nominee Directors, while Mr. V G Kannan ceased as Independent Director. Mr. Mukul Mathur was appointed as Independent Director and Ms. Mona Kachhwaha was re-appointed for a second term.

Management Changes: Mr. John Vijayan Rayappa was redesignated as Chief Risk Officer from CFO, with Mr. Sanjay Mittal appointed as new Chief Financial Officer effective May 7, 2025.

Regulatory Compliance: Secretarial audit confirmed compliance with Companies Act, SEBI regulations, and RBI/NHB guidelines for both entities. No material penalties or sanctions from regulators were imposed during FY26.

Audit & Assurance

Auditors Sundaram & Srinivasan issued clean audit opinions on both standalone and consolidated financial statements, with no material weaknesses in internal financial controls. Sustainability assurance report was approved for FY26, and all statutory compliance requirements were met.

Outlook & Guidance

For FY27, the company guided for 22-24% AUM growth, credit costs of 50 basis points (±10 bps), and continued expansion with approximately 65 new branches. Strong capital position with 71% CRAR provides significant growth headroom without equity dilution through at least FY28.