Aadhar Housing Finance has received a credit rating upgrade from CARE Ratings, reflecting the company’s strong financial and operational performance in the fiscal year 2025. CARE has upgraded the rating for Aadhar Housing Finance’s long-term bank facilities and non-convertible debentures (NCDs) to CARE AA+ from the earlier CARE AA, while maintaining a stable outlook. This upgrade covers financial instruments worth approximately ₹1,928 crore, including NCDs, subordinate debt, and fixed deposits.
The rating revision comes on the back of consistent growth in Aadhar Housing Finance’s loan book, robust capital adequacy, and sound asset quality. The company has demonstrated stable collection performance and maintains a diversified funding mix, supported by strong internal controls and governance practices. These factors have contributed to CARE’s confidence in the company’s ability to sustain its business and financial risk profiles in the medium term.
For the quarter ended March 2025, Aadhar Housing Finance reported a 21 percent increase in net profit, rising to ₹245 crore from ₹202 crore in the same quarter of the previous year. Total income also grew to ₹834 crore from ₹692 crore year-on-year, underscoring the company’s improving operational metrics.
The upgrade is expected to enhance Aadhar Housing Finance’s borrowing capacity by potentially lowering its cost of funds, thereby improving investor confidence and access to institutional capital. The company’s leadership in the affordable housing finance segment, particularly catering to low-income groups across multiple Indian states, remains a key strength.
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CARE Ratings’ decision to upgrade the rating signals a stable outlook with a low risk of downgrade in the near future. This positive development may also have a favorable impact on Aadhar Housing Finance’s market perception and share price performance.
The company promptly disclosed the rating upgrade to stock exchanges in compliance with SEBI regulations. Overall, the CARE AA+ rating affirms Aadhar Housing Finance’s strong market position and its commitment to delivering sustainable growth and value to stakeholders in India’s affordable housing finance sector.
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