ICICI Securities Raises Target Price for Aadhar Housing Finance to Rs 625

Aadhar Housing Finance Exhibits Robust Franchise Resilience in FY26

Aadhar Housing Finance (Aadhar) has demonstrated exceptional resilience in the face of sector headwinds, showcasing its ability to maintain scale and profitability in the fiscal year 2026. The company's franchise strength lies in its rigorous credit discipline, robust risk management, and a highly diversified geographical footprint. Notably, no single state accounts for more than 15% of its total Assets Under Management (AUM).

In contrast to several of its affordable housing finance peers, who marginally missed growth targets, Aadhar outperformed the cohort by delivering 20% year-over-year (YoY) growth in AUM, in line with its guidance. Additionally, the company achieved a notable Return on Equity (RoE) of greater than 17% in the fourth quarter of FY26.

Despite navigating ongoing macroeconomic uncertainties, management remains confident in its ability to sustain a 20% growth trajectory in both Profit After Tax (PAT) and AUM over the near term. This optimism is reflected in the company's retention of its BUY rating, with an unchanged target price of INR 625. This valuation is based on approximately 3x March 2027 Estimated Book Value Per Share (BVPS).

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Note: The table compares Aadhar Housing Finance's performance with its peers in the affordable housing finance sector, highlighting its exceptional growth and profitability.