Aadhar Housing Finance Turns Street Favourite! 5 Big Brokerages Bet Big For Nearly 28% Rally; Should You Buy?

Five prominent brokerages-ICICI Securities, Kotak Institutional Equities, DAM Capital Research, Mirae Asset Capital Market, and Investec Bank Plc (UK)-initiated a BUY call on Aadhar Housing Finance with an upside potential of 26%, 26.26%, 20%, 22.22%, and 27.6%, respectively, following the company's strong Q2 and H1 FY26 performance.

Aadhar Housing is top preference for several brokerages due to below key factors:

• Aadhar continues to deliver strong asset quality, with Stage 2 assets improving to 3.5% from 3.7% quarter-on-quarter and 30+ DPD reducing, reflecting disciplined credit management.
• Credit costs have moderated sharply to 19 bps from 41 bps quarter-on-quarter, supported by a strong on-ground collection network of around 1,500 personnel.
• The loan portfolio remains well diversified, with no single state contributing more than 15% of AUM and minimal exposure to stress-prone regions such as Tirupur, Coimbatore, and Surat.
• AUM growth has remained robust at over 20% year-on-year, backed by steady disbursements, expansion into new markets, and disciplined underwriting.
• Disbursement momentum is expected to pick up in the second half of FY26, aided by government schemes like PMAY 2.0, GST benefits, and festive housing demand.
• Margins have improved due to a decline in borrowing costs by 10-20 bps, leading to spread expansion; a further reduction in cost of funds is expected in H2FY26.
• Return ratios remain strong, with RoA above 4% and RoE around 16%, indicating efficient profitability and cost control despite a higher base.
• Aadhar's innovative split-branch model between urban and emerging markets is helping sustain AUM growth above 20% while maintaining spreads of over 5.5%.
• The emerging market portfolio delivers higher yields of 14.5-16%, contributing to overall margin stability and stronger earnings.
• Asset quality resilience continues, supported by high collection efficiency of 99% and lower stress levels compared to peers in the affordable housing finance segment.
• Management expects a sustained AUM CAGR of 20-22% over FY25-FY28, supported by geographic diversification and focus on salaried borrowers.

Aadhar Housing Finance Q2 & H1FY26 financial highlights

• Profit after tax grew 17% YoY to Rs. 266 crore in Q2FY26 as against Rs. 228 crore in Q2 FY25
• Profit after tax grew 18% YoY to Rs. 504 crore in H1FY26 as against Rs. 428 crore in H1FY25
• Assets under management (AUM) grew by 21% to Rs 27,554 crore as of 30th September, 2025 from Rs 22,817 crore as of 30th September 2024
• Total number of loan accounts as of 30th September, 2025 reached 3,15,000+

Aadhar Housing Finance Target Price

Here is the latest target price for Aadhar Housing Finance recommended by leading brokerages after the company's strong Q2 financials.

• Aadhar Housing Finance Share Price Target: Rs 625 by ICICI Securities
• Aadhar Housing Finance Share Price Target: Rs 605 by Mirae Asset
• Aadhar Housing Finance Share Price Target: Rs 625 by Kotak Securities
• Aadhar Housing Finance Share Price Target: Rs 625 by Investec
• Aadhar Housing Finance Share Price Target: Rs 590 by DAM Capital Advisors

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