Are Aadhar Housing Finance Ltd latest results good or bad?

Aadhar Housing Finance Ltd's latest financial results for Q2 FY26 indicate a continuation of its growth trajectory, with notable increases in both net profit and revenue. The company reported a net profit of ₹266.47 crores, reflecting a quarter-on-quarter growth of 12.30% and a year-on-year increase of 17.12%. Revenue for the quarter reached ₹897.13 crores, which represents a 5.77% sequential growth and a significant 17.38% increase compared to the same quarter last year.
The operating margin for the quarter stood at 76.85%, marking an all-time high for the company, which underscores its operational efficiency and effective cost management. The return on equity was reported at 14.31%, indicating healthy capital efficiency within the context of the affordable housing finance sector.

However, the subsequent quarter's results for December 2025 show a slight moderation in growth rates, with net sales and net profit experiencing quarter-on-quarter growth of 5.08% and 5.53%, respectively. This reflects a deceleration compared to the previous quarter's performance.

Despite the strong operational metrics, there remains a notable gap in the disclosure of detailed asset quality metrics for Q2 FY26, which is critical for assessing the sustainability of earnings in the lending sector. The absence of this information could raise concerns among investors regarding the company's credit risk management.

Overall, Aadhar Housing Finance Ltd continues to demonstrate solid operational performance, but the recent adjustment in its evaluation suggests a need for careful monitoring of future growth and asset quality disclosures.