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    Aptus Value Housing Finance India Limited

    APTUS
    Financial Services·7 May 2026
    Management Summary

    Aptus Value Housing Finance reported a robust Q4 and FY26, achieving its highest quarterly disbursements of INR1,242 crores and 21% YoY AUM growth to INR13,107 crores. Profit for FY26 rose 26% to INR943 crores, with Q4 ROE at 21.2%. While asset quality saw a slight increase in GNPA/NNPA primarily from the NBFC book, collection efficiency remained strong at 100.5%. The company is focused on geographical expansion, increasing average ticket size, and optimizing lending rates to drive sustainable growth and maintain profitability.

    Highlights

    5

    • Achieved highest quarterly disbursements of INR1,242 crores in Q4 FY26, growing 17% YoY and 21% QoQ.

    • AUM grew by 21% year-on-year to INR13,107 crores, demonstrating robust business growth.

    • Profit for FY26 rose by 26% to INR943 crores, with Q4 ROE reaching 21.2%, among the highest in the industry.

    • Collection efficiency stood strong at 100.5% in Q4 FY26, an improvement from 99.1% in the previous quarter.

    • Spreads improved to 9% in Q4 FY26, driven by a decline in the cost of funds to 8.1%.

    Concerns

    3

    • GNPA increased to 1.52% in FY26 from 1.19% in FY25, primarily due to marginal increase in the NPA of NBFC.

    • NNPA increased to 1.15% in FY26 from 0.89% in FY25.

    • Collection issues were noted in Karnataka, requiring strengthening of the collection system and staff recruitment.

    Key financials

    Single quarter

    20 metrics
    1. 01AUM₹13,107 Cr+21%YoY
    2. 02Disbursements Q4 FY26₹1,242 Cr+17%YoY
    3. 03Disbursements FY26₹4,009 Cr+11%YoY
    4. 04Net Income Margin Q4 FY26₹434 Cr+24%YoY
    5. 05Profit Q4 FY26₹261 Cr+26%YoY

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Dividend

    ₹4.5/share (final)

    Liquidity

    Cash ₹2,057 crores · Undrawn ₹1,505 crores

    Sufficient liquidity position with total liquidity of INR2,057 crores as of March '26, including INR1,505 crores of undrawn bank sanctions, providing ample headroom to support growth.

    Guidance & targets

    17
    CategoryTargetPriority
    Growth
    Consistent Growth
    20-plus percent
    		High
    Growth
    Sustainable Growth
    20% plus
    		High
    Profitability
    ROE
    20% plus
    		High
    Profitability
    ROE
    much above 20%
    		High
    Branch Expansion
    New Branches
    around 60
    		High
    AUM Growth
    Sustainable AUM Growth
    22% to 24%
    		High
    Credit Cost
    Credit Cost
    0.5% plus or minus 0.1%
    		High
    Cost
    Cost to AUM Ratio
    between 2.6% to 2.8%
    		High
    Direct Assignment
    DA as % of Total AUM
    beyond 10%
    		High
    Direct Assignment
    DA as % of Loan Book
    around 10%
    		High
    Cost of Funds
    Incremental Cost of Funds (Housing Finance)
    7.8% or 7.9%
    		Medium
    Cost of Funds
    Incremental Cost of Funds (NBFC)
    8.2% to 8.3%
    		Medium
    Yields
    Impact on AUM Yields (from calibrated lending rates)
    around 0.1%
    		High
    Yields
    Net Impact on Yield (from increased borrowing cost and drop in lending rates)
    around 0.18%
    		High
    Yields
    Impact on Disbursement Yields (from calibrated rates)
    around 0.1%- 0.15%
    		Medium
    Yields
    Impact on Loan Book Yield (from calibrated rates)
    around 0.06%
    		High
    Average Ticket Size
    Increase in ATS
    INR1 lakh
    		High

    AUM Growth Rate

    Next quarter / FY27
    Current21% YoY (FY26)
    Target22-24%

    Why it matters

    Key indicator of business expansion and market share gain, directly impacting revenue.

    Looking ahead, we expect to deliver sustainable AUM growth of 22% to 24% driven by these initiatives.

    How to verify

    key_financials.metrics[label='AUM'].yoy_growth

    Risks & concerns

    5
    RiskSeverity

    Increased GNPA/NNPA

    GNPA increased to 1.52% (FY26) from 1.19% (FY25), and NNPA to 1.15% (FY26) from 0.89% (FY25), primarily from the NBFC segment. — Management acknowledged

    medium

    Collection Issues in Karnataka

    Small issues in collections in Karnataka, leading to lower collection percentage in that region, prompting strengthening of collection systems and staff. — Management acknowledged

    medium

    Intense Competition in Tamil Nadu

    Competition in Tamil Nadu is higher, leading to slightly higher attrition, though the company is managing through incentive schemes and productivity improvements. — Management acknowledged

    medium

    Potential for Slight Increase in Cost of Funds

    Incremental cost of funds may slightly increase, with a potential 0.08% rise in total borrowing cost if incremental cost goes up by 0.2%. — Management acknowledged

    low

    Slight Drop in AUM Yields and Net Impact on Spreads

    Calibrated lending rates on some housing loan ticket sizes are expected to result in a 0.1% drop in AUM yields and a net impact of 0.18% on overall yields. — Management acknowledged

    low

    Q&A highlights

    8

    “If you look at Tamil Nadu, the year-on-year loan book growth is around 14%. We have made structural changes in terms of employing correct people and then retaining people in Tamil Nadu. But still in Tamil Nadu, the attrition is slightly high, but still, we are able to retain people who are able to contribute to the business. Having said that, in Tamil Nadu, the competition is slightly higher.”

    Highlights regional growth dynamics, competitive pressures, and internal strategies to manage talent and drive growth in a key state.

    asked by Rajiv Mehta

    2 min read6 chapters

    Detailed Narrative

    01

    Robust Growth and Profitability in FY26

    Aptus Value Housing Finance delivered strong performance in FY26, with AUM growing 21% year-on-year to INR13,107 crores. Disbursements for the full year increased 11% to INR4,009 crores, while Q4 FY26 saw the highest quarterly disbursements at INR1,242 crores, up 17% YoY and 21% QoQ. The company reported a 26% increase in profit for FY26 to INR943 crores, with Q4 ROE reaching an impressive 21.2%, positioning it among the highest in the industry.

    02

    Asset Quality Trends and Management Actions

    While overall collection efficiency remained strong at 100.5% in Q4 FY26, the company observed an increase in GNPA to 1.52% and NNPA to 1.15% for FY26, primarily driven by the NBFC book. Management acknowledged specific collection issues in Karnataka and is actively strengthening collection systems and staff in that region. Despite the slight increase, the credit cost for FY26 remained within the guided range at 50 basis points.

    03

    Strategic Initiatives for Future Growth

    The company is pursuing several initiatives to sustain its AUM growth target of 22-24%. These include geographical expansion into new states like Maharashtra and Odisha, with plans to open around 60 new branches in FY27, adding to the current network of 339. Aptus is also focusing on increasing its average ticket size by INR1 lakh annually to onboard higher quality customers and expanding its connector channel for lead generation.

    04

    Optimizing Spreads and Funding Costs

    Aptus improved its spread to 9% in Q4 FY26, driven by a decline in the cost of funds to 8.1%. Management anticipates incremental cost of funds in housing finance to be around 7.8-7.9% and in NBFC at 8.2-8.3%, with a slight increase possible. Calibrated lending rates on certain housing loan ticket sizes are expected to result in a slight drop of 0.1% in AUM yields, leading to a net impact of approximately 0.18% on overall yields, which has been factored into the business plan.

    05

    Direct Assignment and Liability Management

    The company utilized direct assignment (DA) for INR700 crores in FY26, representing 5.6% of its loan book, primarily for non-housing loans. Aptus aims to maintain DA at around 10% of its total AUM, using it as a liquidity management tool and to improve housing finance company criteria. The liability profile remains diversified, with 58% from banks, 15% from NCDs, 19% from securitization, and 9% from NHB, and the company has applied for a INR500 crore refinance facility from NHB.

    06

    Focus on Higher Quality Customers and Operational Efficiency

    Aptus discontinued sourcing loans below INR7 lakhs, a decision that has contributed to better collection efficiencies and lower bounce rates, thereby minimizing efforts for collection teams. This strategy, coupled with increased IT spending on security and business processes like Ziva, is seen as an investment for future process improvements and operational efficiency, despite a slight increase in cost to AUM to 2.7% (within the 2.6-2.8% guidance range).

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.