Aptus Value Housing Finance India Ltd
NSE:APTUS
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Aptus Value Housing Finance India Ltd
Aptus Value Housing Finance India Ltd. is crafted with a mission to nurture the aspirations of India's financially underserved communities, primarily in the southern region of the country. Founded in 2009 by M. Anandan, the company embarked on a journey to provide home loans, loans against property, and insurance products to those often bypassed by mainstream financial institutions. Aptus thrives on understanding the nuanced needs of self-employed individuals and small business owners, many of whom lack formal income documentation. By employing a grassroots approach, they leverage local knowledge and customer relationships to assess creditworthiness beyond conventional metrics.
The company's business model hinges on a robust underwriting process, ensuring the quality of its loan portfolio. Aptus generates revenue through interest income on loans disbursed, which is its core income stream, complemented by fee-based income from insurance distribution. The firm targets affordable housing, a sector bolstered by government incentives and a chronic demand-supply mismatch, offering opportunities for steady growth. With an efficient cost structure and careful risk assessment, Aptus maintains healthy margins while expanding its footprint. This dedicated focus on an underserved niche affords the company a competitive edge, fueling its profitability and sustainability in India’s burgeoning housing finance landscape.
Aptus Value Housing Finance India Ltd. is crafted with a mission to nurture the aspirations of India's financially underserved communities, primarily in the southern region of the country. Founded in 2009 by M. Anandan, the company embarked on a journey to provide home loans, loans against property, and insurance products to those often bypassed by mainstream financial institutions. Aptus thrives on understanding the nuanced needs of self-employed individuals and small business owners, many of whom lack formal income documentation. By employing a grassroots approach, they leverage local knowledge and customer relationships to assess creditworthiness beyond conventional metrics.
The company's business model hinges on a robust underwriting process, ensuring the quality of its loan portfolio. Aptus generates revenue through interest income on loans disbursed, which is its core income stream, complemented by fee-based income from insurance distribution. The firm targets affordable housing, a sector bolstered by government incentives and a chronic demand-supply mismatch, offering opportunities for steady growth. With an efficient cost structure and careful risk assessment, Aptus maintains healthy margins while expanding its footprint. This dedicated focus on an underserved niche affords the company a competitive edge, fueling its profitability and sustainability in India’s burgeoning housing finance landscape.
Strong Profit Growth: Net profit rose 24% year-on-year to INR 227 crores for Q2 FY '26, and 26% to INR 446 crores for the half-year, with return on assets (ROA) at 7.9% and return on equity (ROE) at 20%.
AUM & Disbursement Growth: Assets under management (AUM) increased 22% year-on-year and 4% quarter-on-quarter, while Q2 disbursements grew 24% sequentially to INR 963 crores.
Policy Shift on Loan Size: The company stopped issuing loans below INR 7 lakhs from July, aiming to shift away from microfinance-type borrowers and focus on better-quality customer profiles.
Credit Cost Up Due to Policy Change: Credit cost rose to 50 bps in H1 (from 20 bps previously), mainly due to a change in write-off policy from 2 years to 500 days, not due to asset quality deterioration.
Asset Quality Stable: Gross NPA increased slightly by 6 bps to 1.55%; management emphasized collections are improving and NPA reduction is a focus.
Operational Efficiency Maintained: Operating expenses stayed at 2.7% of AUM, among the best in the industry, supported by tech investments and productivity gains.
Funding Cost Improved: Cost of borrowing dropped 20 bps quarter-on-quarter to 8.42%, with the latest borrowing at 7.9%. Liquidity remains strong.
Confident on 25% Growth Target: Management remains committed to achieving 25%+ AUM growth over the medium term, with recent branch expansion and tech stabilization supporting this outlook.
