However, the stock has faced considerable pressure over the past year, declining 13.52% whilst the broader Sensex gained 6.66%, resulting in a negative alpha of 20.18 percentage points. Trading at ₹278.00 as of February 04, 2026, the stock has underperformed its housing finance sector peers, which delivered a positive return of 31.04% over the same period—a stark underperformance of 44.56 percentage points.
The December 2025 quarter results underscore Aptus Value Housing's consistent ability to expand its loan book whilst maintaining healthy profitability metrics. Interest earned rose to ₹553.60 crores in Q3 FY26, representing sequential growth of 1.76% and year-on-year growth of 23.01%. This sustained revenue expansion reflects the company's focus on serving the low and middle-income housing segment, a niche that continues to demonstrate resilient demand despite broader macroeconomic uncertainties.
| Quarter | Interest Earned (₹ Cr) | QoQ Growth | Net Profit (₹ Cr) | QoQ Growth | PAT Margin |
|---|---|---|---|---|---|
| Dec'25 | 553.60 | +1.76% | 236.19 | +4.26% | 42.66% |
| Sep'25 | 544.04 | +4.57% | 226.55 | +3.33% | 41.64% |
| Jun'25 | 520.26 | +7.48% | 219.25 | +5.90% | 42.14% |
| Mar'25 | 484.04 | +7.55% | 207.03 | +8.68% | 42.77% |
| Dec'24 | 450.05 | +6.80% | 190.50 | +4.69% | 42.33% |
| Sep'24 | 421.39 | +6.70% | 181.97 | +5.95% | 43.18% |
| Jun'24 | 394.94 | — | 171.75 | — | 43.49% |
Financial Performance: Margin Resilience Amidst Rising Costs
Aptus Value Housing's Q3 FY26 financial performance reveals a company navigating the delicate balance between aggressive growth and profitability preservation. Interest earned of ₹553.60 crores in Q3 FY26 represents the highest quarterly revenue in the company's history, continuing an unbroken streak of sequential growth over the past seven quarters. On a year-on-year basis, interest income expanded by 23.01%, demonstrating robust loan book expansion.
Operating profit before depreciation, interest, and tax (excluding other income) stood at ₹454.72 crores in Q3 FY26, marking the highest quarterly operating profit recorded. However, the operating margin (excluding other income) contracted to 82.14% from 83.23% in Q2 FY26 and 85.05% in Q3 FY25, indicating rising operational costs. Employee costs surged to ₹64.88 crores in Q3 FY26, up 22.28% sequentially and 49.27% year-on-year, reflecting the company's investment in talent acquisition and branch expansion to drive future growth.
Net profit margin improved to 42.66% in Q3 FY26 from 41.64% in the previous quarter, driven by controlled interest costs and effective tax management. Interest expenses of ₹162.49 crores in Q3 FY26 declined 1.53% sequentially, demonstrating the company's ability to optimise its cost of funds despite a challenging interest rate environment. The effective tax rate stood at 22.25% in Q3 FY26, marginally lower than the 23.01% recorded in Q2 FY26.
Operational Excellence: Capital Efficiency Remains a Core Strength
Aptus Value Housing continues to demonstrate superior capital efficiency, a hallmark of quality housing finance companies. The company's return on equity (ROE) stands at an impressive 18.11% for the latest period, significantly above its five-year average of 16.20%. This elevated ROE reflects the company's ability to generate strong returns on shareholder capital, a critical metric for evaluating financial services businesses. Higher ROE indicates better capital efficiency and profitability, positioning Aptus Value Housing favourably amongst its housing finance peers.
The company's return on capital employed (ROCE) of 14.54% demonstrates efficient utilisation of total capital, though it trails the ROE, indicating the impact of leverage on returns. With an average net debt-to-equity ratio of 1.57 over the past five years, Aptus Value Housing operates with moderate leverage typical of housing finance companies, though higher than some peers. The balance sheet reveals shareholder funds of ₹4,316.65 crores as of March 2025, up from ₹3,767.92 crores a year earlier, reflecting strong internal capital generation.
Asset quality remains a key focus area for any lending institution. Whilst specific non-performing asset (NPA) data is not disclosed in the quarterly results, the consistent profitability and stable margins suggest controlled credit costs. The company's focus on the low and middle-income housing segment, combined with its loan-against-property (LAP) offerings, requires vigilant underwriting standards to maintain asset quality.
Capital Efficiency: A Competitive Advantage
Aptus Value Housing's ROE of 18.11% places it amongst the top performers in the housing finance sector. This superior capital efficiency, combined with a five-year sales growth CAGR of 29.17% and EBIT growth of 29.54%, demonstrates the company's ability to scale profitably. The elevated ROE reflects strong profitability margins, efficient asset utilisation, and judicious use of leverage—three pillars that underpin sustainable value creation for shareholders.
Promoter Stake Dilution: A Strategic Shift in Ownership Structure
A significant development in recent quarters has been the substantial reduction in promoter shareholding. Promoter holding declined sharply from 52.98% in March 2025 to 40.37% in June 2025, and further to 23.87% by December 2025. This 29.11 percentage point reduction over three quarters represents a major strategic shift in the company's ownership structure. Such large-scale promoter stake dilution typically occurs through secondary market sales or preferential allotments to institutional investors.
Interestingly, this promoter dilution has been accompanied by aggressive institutional accumulation. Foreign institutional investor (FII) holdings surged from 21.87% in December 2024 to 33.20% by December 2025, an increase of 11.33 percentage points. Mutual fund holdings witnessed an even more dramatic increase, jumping from 8.43% in December 2024 to 22.30% by December 2025—a substantial 13.87 percentage point expansion. Insurance company holdings also rose from 0.13% to 2.88% over the same period.
The redistribution of shareholding from promoters to institutional investors reflects growing confidence amongst sophisticated investors in Aptus Value Housing's business model and growth prospects. Total institutional holdings now stand at 60.48%, indicating strong professional investor backing. However, the rapid promoter dilution may raise questions amongst certain investor segments regarding the long-term commitment of the founding team.
| Shareholder Category | Dec'25 | Sep'25 | Jun'25 | Mar'25 | QoQ Change |
|---|---|---|---|---|---|
| Promoter Holding | 23.87% | 23.87% | 40.37% | 52.98% | 0.00% |
| FII Holding | 33.20% | 35.35% | 30.40% | 27.74% | -2.15% |
| Mutual Fund Holding | 22.30% | 21.36% | 14.73% | 9.05% | +0.94% |
| Insurance Holdings | 2.88% | 2.41% | 0.32% | 0.13% | +0.47% |
| Other DII Holdings | 2.11% | 2.10% | 0.99% | 0.70% | +0.01% |
| Non-Institutional | 15.65% | 14.90% | 13.19% | 9.39% | +0.75% |
Industry Leadership: Competitive Positioning Against Housing Finance Peers
When benchmarked against housing finance sector peers, Aptus Value Housing presents a mixed valuation and performance profile. The company's ROE of 16.20% positions it competitively, exceeding the performance of established players such as LIC Housing Finance (12.36%), PNB Housing (9.73%), and Bajaj Housing (10.49%). Only Can Fin Homes, with an ROE of 17.03%, marginally surpasses Aptus Value Housing in capital efficiency metrics.
From a valuation perspective, Aptus Value Housing trades at a price-to-earnings (P/E) ratio of 16.51x, which sits at a premium to LIC Housing Finance (5.17x), PNB Housing (10.12x), and Can Fin Homes (12.85x), but at a discount to Bajaj Housing (30.75x) and Aadhar Housing Finance (19.69x). The company's price-to-book value (P/BV) ratio of 2.99x reflects investor recognition of its superior ROE profile, though it trades at a premium to most peers except Bajaj Housing (3.61x).
Aptus Value Housing's dividend yield of 1.62% is competitive within the peer group, exceeding PNB Housing (0.59%) and Can Fin Homes (1.38%), whilst trailing LIC Housing Finance (1.94%). The company declared a dividend of ₹2.00 per share with an ex-dividend date of November 07, 2025. With a market capitalisation of ₹13,850 crores, Aptus Value Housing ranks as the fifth-largest player amongst its peer group, positioning it as a mid-sized housing finance company with significant growth runway.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity | Div Yield (%) |
|---|---|---|---|---|---|
| Aptus Value Hou. | 16.51 | 2.99 | 16.20 | 1.57 | 1.62 |
| Bajaj Housing | 30.75 | 3.61 | 10.49 | 4.44 | — |
| LIC Housing Fin. | 5.17 | 0.74 | 12.36 | 7.08 | 1.94 |
| PNB Housing | 10.12 | 1.23 | 9.73 | 3.63 | 0.59 |
| Aadhar Hsg. Fin. | 19.69 | 2.98 | 14.33 | 2.55 | — |
| Can Fin Homes | 12.85 | 2.29 | 17.03 | 6.61 | 1.38 |
Valuation Analysis: Expensive But Justified by Growth Profile
Aptus Value Housing's current valuation reflects a premium to its housing finance peers, though not without justification. Trading at a P/E ratio of 16.51x against the industry average P/E of 12x, the stock commands a 37.58% valuation premium. This premium is primarily attributable to the company's superior ROE of 16.20%, robust five-year sales CAGR of 29.17%, and consistent profitability track record.
The company's price-to-book value ratio of 2.99x appears elevated on an absolute basis but becomes more palatable when adjusted for the ROE profile. The price-to-earnings-to-growth (PEG) ratio of 0.67x suggests the stock may actually be undervalued relative to its growth trajectory, as PEG ratios below 1.0 typically indicate attractive valuations for growth-oriented companies. However, the overall valuation assessment categorises the stock as "Expensive," a designation it has held since mid-October 2025 after briefly transitioning through "Very Expensive" territory.
The stock's enterprise value-to-EBITDA multiple of 12.32x and EV-to-sales ratio of 10.38x reflect investor willingness to pay premium multiples for a housing finance company demonstrating consistent execution. Trading 23.80% below its 52-week high of ₹364.85 and 8.05% above its 52-week low of ₹257.30, the stock has found support in the ₹270-280 range over recent weeks.
Valuation Dashboard
Stock Performance: Significant Underperformance Across Timeframes
Aptus Value Housing's stock price performance has been disappointing across virtually all timeframes, raising concerns about market sentiment despite robust underlying fundamentals. Over the past year, the stock has declined 13.52% whilst the Sensex advanced 6.66%, resulting in a negative alpha of 20.18 percentage points. The underperformance becomes even more stark when compared to the housing finance sector, which delivered returns of 31.04% over the same period—an underperformance of 44.56 percentage points.
The medium-term picture remains challenging, with the stock declining 20.79% over six months compared to the Sensex's 3.45% gain, translating to a negative alpha of 24.24 percentage points. The three-month performance shows a decline of 5.71% against the Sensex's 0.43% gain. Even the short-term picture offers little respite, with the stock down 2.06% over the past month, though marginally outperforming the Sensex's 2.27% decline.
The two-year and three-year returns paint an even grimmer picture, with the stock declining 24.78% and gaining just 1.46% respectively, whilst the Sensex advanced 16.28% and 37.76% over the same periods. The stock's beta of 1.35 indicates it is 35% more volatile than the broader market, amplifying both gains and losses. Currently trading below all key moving averages—5-day (₹272.52), 20-day (₹272.21), 50-day (₹279.08), 100-day (₹295.23), and 200-day (₹313.73)—the technical picture remains decidedly negative.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | +1.78% | +1.79% | -0.01% |
| 1 Month | -2.06% | -2.27% | +0.21% |
| 3 Months | -5.71% | +0.43% | -6.14% |
| 6 Months | -20.79% | +3.45% | -24.24% |
| YTD | -0.39% | -1.65% | +1.26% |
| 1 Year | -13.52% | +6.66% | -20.18% |
| 2 Years | -24.78% | +16.28% | -41.06% |
| 3 Years | +1.46% | +37.76% | -36.30% |
Investment Thesis: Quality Fundamentals Meet Technical Weakness
The investment thesis for Aptus Value Housing presents a classic dichotomy between strong fundamental performance and weak market sentiment. From a quality perspective, the company scores well, classified as a "Good" quality company based on long-term financial performance. The five-year sales CAGR of 29.17% and EBIT growth of 29.54% demonstrate consistent operational execution. The average ROE of 16.20% reflects superior capital efficiency, whilst institutional holdings of 60.48% indicate professional investor confidence.
However, the technical picture remains decidedly negative, with the stock in a "Mildly Bearish" trend as of February 03, 2026. The stock trades below all key moving averages, and technical indicators such as MACD and Bollinger Bands flash bearish signals on both weekly and monthly timeframes. The company's proprietary Mojo Score of 55 out of 100 results in a "HOLD" rating, reflecting the mixed signals across fundamental strength and technical weakness.
The valuation, whilst expensive on absolute metrics, appears more reasonable when adjusted for growth (PEG ratio of 0.67x). The financial trend remains positive, with Q3 FY26 marking record highs for interest earned, operating profit, and net profit. The key risk factors include the substantial promoter stake dilution, elevated leverage typical of housing finance companies, and persistent technical weakness that suggests ongoing selling pressure.
Key Strengths & Risk Factors
✓ KEY STRENGTHS
- Superior Capital Efficiency: ROE of 18.11% (latest) and 16.20% (average) significantly exceeds most housing finance peers, reflecting strong profitability and efficient capital deployment
- Consistent Growth Trajectory: Five-year sales CAGR of 29.17% and EBIT growth of 29.54% demonstrate robust and sustainable business expansion
- Record Quarterly Performance: Q3 FY26 marked all-time highs for interest earned (₹553.60 crores), operating profit (₹454.72 crores), and net profit (₹236.19 crores)
- Strong Institutional Backing: Total institutional holdings of 60.48%, including 33.20% FII and 22.30% mutual fund ownership, reflect sophisticated investor confidence
- Healthy Profitability Margins: PAT margin of 42.66% and operating margin of 82.14% demonstrate pricing power and operational efficiency
- Attractive PEG Ratio: PEG ratio of 0.67x suggests the stock may be undervalued relative to its growth trajectory
- Niche Market Focus: Specialisation in low and middle-income housing segment provides differentiated positioning and resilient demand
⚠ KEY CONCERNS
- Severe Stock Underperformance: One-year decline of 13.52% vs Sensex gain of 6.66%, and massive 44.56 percentage point underperformance vs housing finance sector
- Massive Promoter Dilution: Promoter stake plummeted from 52.98% to 23.87% over three quarters, raising questions about long-term commitment and potential overhang
- Negative Technical Trend: Stock trading below all key moving averages with bearish signals across MACD, Bollinger Bands, and other technical indicators
- Expensive Valuation: P/E of 16.51x represents 37.58% premium to industry average of 12x, limiting upside potential until growth re-accelerates
- Rising Operating Costs: Employee costs surged 49.27% YoY, compressing operating margins by 291 bps over the past year
- High Beta Volatility: Beta of 1.35 indicates 35% higher volatility than market, amplifying downside risk during market corrections
- Moderate Leverage: Debt-to-equity ratio of 1.57 is manageable but higher than some peers, limiting financial flexibility
Outlook: What Lies Ahead for Aptus Value Housing
The forward outlook for Aptus Value Housing hinges on the company's ability to sustain its operational momentum whilst addressing market sentiment concerns. The housing finance sector in India continues to benefit from structural tailwinds, including rising homeownership aspirations, government policy support through schemes such as Pradhan Mantri Awas Yojana, and improving affordability driven by stable interest rates. Aptus Value Housing's focus on the underserved low and middle-income segment positions it well to capitalise on these trends.
However, several factors warrant close monitoring. The sharp promoter dilution, whilst accompanied by institutional accumulation, requires clarity on the strategic rationale and whether further dilution is anticipated. The company's ability to maintain asset quality whilst pursuing aggressive growth will be critical, particularly as competition intensifies in the affordable housing finance segment. Operating cost management, especially employee costs which surged in recent quarters, will determine whether the company can sustain or expand its profitability margins.
From a technical perspective, the stock needs to reclaim key moving averages, particularly the 200-day MA at ₹313.73, to signal a trend reversal. Until then, the path of least resistance appears to be sideways to slightly lower. The upcoming quarters will be crucial in determining whether the fundamental strength can eventually translate into stock price performance, or whether the valuation premium will continue to compress under the weight of market scepticism.
✓ POSITIVE CATALYSTS
- Sustained quarterly profit growth above 20% YoY
- Further institutional accumulation and FII inflows
- Expansion of loan book without asset quality deterioration
- Operating cost rationalisation and margin expansion
- Technical trend reversal above 200-day MA
⚠ RED FLAGS TO WATCH
- Further promoter stake reduction or selling pressure
- Deterioration in asset quality metrics or rising NPAs
- Margin compression due to competitive pricing pressure
- Slower-than-expected loan book growth
- Break below 52-week low support at ₹257.30
The Verdict: Quality Business Trapped in Valuation Purgatory
Score: 55/100
For Fresh Investors: Avoid fresh purchases at current levels. Whilst the fundamental business quality remains intact with strong ROE, consistent growth, and record profitability, the expensive valuation (P/E of 16.51x vs industry 12x), massive promoter dilution, and persistent technical weakness suggest limited near-term upside. Consider accumulating only on significant corrections below ₹250, which would offer a more favourable risk-reward profile.
For Existing Holders: Continue to hold your positions. The company's operational execution remains strong, with Q3 FY26 delivering record profits and demonstrating the resilience of its business model. The 60.48% institutional holding and superior ROE of 16.20% provide confidence in long-term value creation. However, monitor promoter shareholding trends closely and be prepared to reassess if asset quality concerns emerge or if technical breakdown accelerates below ₹257 support.
Fair Value Estimate: ₹310-320 (11.5%-15.1% upside potential from current levels), based on sustainable ROE of 16-17%, P/BV multiple of 3.2-3.5x (justified by superior capital efficiency), and assuming continued operational momentum without material asset quality deterioration.
Note— ROCE = (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. The views expressed are based on information available as of February 04, 2026, and are subject to change.
