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    Aptus Value Housing Finance India Q1 FY27 earnings call

    APTUS
    Financial Services·1 Aug 2026
    Management Summary

    Aptus Value Housing Finance reported a robust Q1 FY27 with strong AUM and disbursement growth, maintaining healthy profitability and high ROE. While asset quality metrics saw a slight moderation due to a temporary NBFC collection issue in June, management confirmed corrective actions led to improvement in July. The company is focused on strategic initiatives like branch expansion, product diversification, and operational efficiency to sustain growth and profitability.

    Highlights

    5

    • AUM grew by 21% Y-o-Y to INR13,648 crores, reflecting strong business momentum.

    • Disbursements reached INR1,053 crores, growing 36% Y-o-Y, with broad-based growth across geographies and channels.

    • Net income margin increased 19% Y-o-Y to INR441 crores, and profit grew 19% Y-o-Y to INR261 crores.

    • ROE remained healthy at 20.4%, placing it among the highest in the industry, while ROA stood at 7.8%.

    • Collection efficiency stood at 98.52%, and 30+ DPD declined by nearly 20 basis points in July 2026, indicating asset quality improvement post-quarter.

    Concerns

    3

    • 30+ DPD stood at 6.87% in Q1 FY27, an increase from 6.21% in Q4 FY26.

    • GNPA increased to 1.7% in Q1 FY27 from 1.52% in Q4 FY26, and Net NPA rose to 1.29% from 1.15%.

    • Collection efficiency dropped to 98.5% in Q1 FY27, primarily due to a temporary hitch in NBFC collections during June 2026.

    Key financials

    Single quarter

    14 metrics
    1. 01AUM₹13,648 Cr+21%YoY
    2. 02Disbursements₹1,053 Cr+36%YoY
    3. 03Net Income Margin₹441 Cr+19%YoY
    4. 04Profit₹261 Cr+19%YoY
    5. 05ROE20.4%

    Segment breakdown

    Credit CostCollection EfficiencyLoan Book Growth
    Housing Finance Company (HFC)20%99.5%20%
    Non-Banking Financial Company (NBFC)140%97.5%24%
    Heatmap· 3 shared metrics

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Undrawn ₹1,257 crores

    Total liquidity position of INR1,933 crores as of June '26. Raised approximately INR876 crores in Q1 FY27. Applied for INR500 crores NHB refinance facility with an effective cost of funds of 7.9%. Sanction rates for HFC are 7.9-8.1% and for NBFC are 8.1-8.25%. 66% of total borrowings are variable (35% repo-linked, 31% MCLR-linked) and 34% are fixed.

    Guidance & targets

    12
    CategoryTargetPriority
    Volume
    AUM Growth
    22% to 24%
    		High
    Volume
    Branch Expansion
    60 to 70 branches
    		High
    Volume
    Disbursement Growth
    25% to 30% increase
    		High
    Profitability
    Operating Expenses to AUM
    2.6% to 2.8%
    		High
    Profitability
    Credit Cost
    0.5% plus or minus 10 basis points
    		High
    Profitability
    ROE
    above 20%
    		High
    Profitability
    Credit Cost
    0.6%
    		High
    Profitability
    Spread
    9%
    		High
    Profitability
    NIM
    13% to 13%
    		High
    Profitability
    Effective Tax Rate
    20%
    		High
    Profitability
    Assignment Income Margin
    12% to 15%
    		High
    Asset Quality
    30+ DPD
    positive trajectory to continue
    		Medium

    What to watch in Q2 FY27

    5

    NBFC Asset Quality (30+ DPD & Collection Efficiency)

    next quarter
    Current30+ DPD at 6.87% (Q1 FY27), NBFC collection efficiency 97.5%
    TargetImprovement, positive trajectory to continue, return to normal

    Why it matters

    The temporary dip in NBFC asset quality was a key concern in Q1, and management expects it to normalize. Verification will confirm the temporary nature of the issue.

    But we have already taken corrective steps in terms of the NBFC collections. And we're very happy to tell that in July 2026, the Stage 2 has almost reduced by 15 to 20 basis points. So, this will continue.

    Risks & concerns

    3
    RiskSeverity

    Field-level attrition

    Attrition at the field level is 40-45%, down from 50-60% previously, but still high. Competitors poach staff when opening new branches. Management is introducing retention incentives and alternate channels. — Management acknowledged

    medium

    Impact of interest rate increases on NIM

    66% of borrowings are variable (35% repo-linked, 31% MCLR-linked). An increase in repo rate could have a minimal impact of approximately 0.06% on NIM, which management has considered. — Management downplayed

    low

    Competition in affordable housing finance sector

    Competition exists, but the market is structurally robust and offers significant growth opportunities. The company is expanding into new states and less competitive locations, and diversifying products to sustain growth. — Management acknowledged

    low

    Q&A highlights

    8

    “First is on the growth, like what we have explained earlier, first, the growth will come from expansion of new branches in new states and expansion of new branches in the existing states, plus the increase in average ticket size by at least INR1 lakh as compared to the last year. That will provide momentum for the growth. ... But we have already taken corrective steps in terms of the NBFC collections. And we're very happy to tell that in July 2026, the Stage 2 has almost reduced by 15 to 20 basis points.”

    Analyst questioned the sustainability of high disbursement growth and the reasons for asset quality improvement. Management provided specific strategic drivers for growth and confirmed the temporary nature of the NBFC asset quality dip, with July showing improvement.

    asked by Nischint Chawathe (Kotak Bank)

    3 min read7 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    Aptus Value Housing Finance India Limited reported a strong start to FY27, with Assets Under Management (AUM) growing 21% year-on-year to INR13,648 crores. Disbursements for the quarter reached INR1,053 crores, marking a 36% year-on-year increase. Profitability remained healthy, with net income margin growing 19% year-on-year to INR441 crores and profit increasing 19% year-on-year to INR261 crores, translating to a Return on Equity (ROE) of 20.4% and Return on Assets (ROA) of 7.8%.

    02

    Growth Drivers and Strategic Initiatives

    The company's growth momentum is driven by strategic initiatives including branch expansion, with 33 new branches opened in Q1, bringing the total network to 372. Diversification of sourcing channels, including the connector network contributing 8% of disbursements, and an increased focus on digital marketing are also key. Furthermore, a calibrated increase in average ticket size by at least INR1 lakh and optimized lending rates on select housing loan ticket sizes are supporting customer acquisition and growth.

    03

    Asset Quality Dynamics

    Consolidated asset quality saw a slight moderation in Q1 FY27, with 30+ DPD at 6.87% (vs 6.21% in Q4 FY26), GNPA at 1.7% (vs 1.52%), and Net NPA at 1.29% (vs 1.15%). This was primarily attributed to a temporary hitch in NBFC collections in June, which caused collection efficiency to drop to 98.52% (HFC at 99.5%, NBFC at 97.5%). Management confirmed that corrective steps have been taken, and 30+ DPD declined by nearly 20 basis points in July, indicating a positive trajectory.

    04

    Profitability and Margins

    Profitability remained robust, with spreads largely stable at 9% despite rationalization of pricing in certain lending segments and prudent liability management. The cost of funds stood at 8%. The company maintained its operating expenses to AUM at 2.7%, within the guided range of 2.6% to 2.8%. Credit cost was contained at 0.6% for the quarter, with HFC credit cost at 0.2% and NBFC credit cost at 1.4%.

    05

    Funding and Liquidity Management

    Aptus raised INR876 crores in Q1 FY27 through term loans, securitization, and direct assignment. The liability profile remains diversified, with 60% from banks, 14% from NCDs, 18% from securitization, and the balance from NHB funding. Total liquidity stood at INR1,933 crores as of June 2026, including INR1,257 crores of un-availed bank sanctions, providing ample headroom for growth. The effective cost of funds from NHB is 7.9%, and sanction rates for HFC and NBFC are 7.9-8.1% and 8.1-8.25% respectively.

    06

    Product Expansion and Diversification

    The company is evaluating opportunities to broaden its lending portfolio beyond home loans and SME loans through the introduction of new lending products, particularly within the NBFC segment. This initiative aims to leverage the existing customer base of over 200,000 and augment income streams, supporting the next stage of growth from INR15,000 crores to INR50,000 crores AUM over time⏳. More details on specific products are expected in the second quarter.

    07

    Operational Efficiency and Branch Network

    Despite opening 33 new branches in Q1 FY27 and planning for 60-70 branches for the full year, Aptus remains committed to maintaining operating efficiency. The operating expenses to AUM ratio was 2.7%, within the guided range of 2.6% to 2.8%. Management acknowledged field-level attrition at 40-45% (down from 50-60%) and is implementing retention incentives and developing alternate channels to mitigate this challenge.

    This is an AI-generated summary of a publicly available earnings call transcript.