Aptus Value Housing Finance Q1 FY27 Results: AUM Grows 21%, Net Profit Rises 19%

What Happened ?

• Aptus Value Housing Finance reported a strong start to FY27, supported by healthy loan disbursements, continued branch expansion, and improving customer quality. Business momentum remained robust across key markets, while technology investments and digital initiatives continued to enhance underwriting, collections, and operating efficiency. Despite a seasonal uptick in delinquencies, asset quality remained resilient and the company reaffirmed its full-year AUM growth guidance. 

key details

Business & Operational Highlights:

• AUM increased 21% YoY to ₹13,648 crore.
• Loan disbursements grew 36% YoY to ₹1,053 crore.
• Net Income Margin increased 19% YoY to ₹441 crore.
• Net Profit rose 19% YoY to ₹261 crore.
• Added 33 new branches during the quarter, expanding the network to 372 branches.
• Plans to open 25 additional branches during Q2 FY27.
• Strengthened presence in Maharashtra and Odisha, while expanding in existing markets.
• Branches opened during FY26 are now making meaningful contributions to business growth.
• Connector network and digital marketing initiatives continued to support loan sourcing and disbursement growth.
• The company is evaluating opportunities to expand beyond home loans and SME loans into additional lending segments. 

Technology & Asset Quality:

• More than 92% of agreements were executed digitally.
• Around 94% of collections were completed through digital channels.
• Account Aggregator data and credit bureau insights continued to strengthen underwriting and credit assessment.
• Collection efficiency was temporarily impacted by seasonal factors, resulting in a modest sequential increase in NPAs.
• Gross NPA stood at 1.70%, while Net NPA was 1.29%.
• The company maintained a healthy 9.0% net spread, 2.7% operating expense ratio, and 0.6% credit cost, in line with management guidance. 

Note:

• Management stated that business momentum observed during Q1 FY27 continued into July and reaffirmed its FY27 AUM growth guidance of 22–24%, supported by ongoing branch expansion, improved customer quality, and continued execution of growth initiatives. 

Risk Analysis

Summary:

• Aptus delivered strong growth and maintained healthy profitability. However, the company reported a slight increase in delinquencies due to seasonal factors, making continued asset quality management and collection efficiency important for sustaining performance.

Key Risks:

• Seasonal factors led to a modest increase in NPAs during the quarter.
• Continued branch expansion requires disciplined execution and cost management.
• Asset quality remains sensitive to borrower repayment behaviour.
• Expansion into new lending products may introduce execution risks.

Worst Case:

• If delinquencies increase further or collection efficiency weakens, asset quality and profitability could come under pressure despite healthy loan growth.

Risk Level: Medium

Company Commentary

Management highlighted the following during the quarter:

• Managing Director P. Balaji said the company continued to witness strong business momentum supported by strategic growth initiatives, technology enhancements, and process improvements.
• Management highlighted improved customer quality following its strategy of discontinuing smaller-ticket sanctions.
• The company noted encouraging traction in Maharashtra and Odisha while emphasizing continued investments in technology, digital underwriting, and analytics.
• Aptus reaffirmed its confidence in achieving 22–24% AUM growth during FY27 while maintaining profitability and asset quality.