Upgrade reflects Aadhar’s established position in affordable/ low-income housing finance, strong capitalisation, healthy earnings profile and comfortable asset quality

MUMBAI, 24 SEPTEMBER 2026 | GPN, SACHIN MURDESHWAR: Aadhar Housing Finance Limited, one of India’s leading housing finance companies focused on the low-income housing segment, has announced that ICRA has upgraded the ratings on its debt instruments and bank facilities to ‘ICRA AA+/Stable’ from ‘ICRA AA/Positive’. With this upgrade, ICRA becomes the third rating agency after CARE’s rating upgrade to ‘CARE AA+’ from ‘CARE AA’ and India Ratings upgrade to ‘IND AA+/Stable’ from ‘IND AA’. With this Aadhar Housing Finance becomes the only HFC with AA+ rating from all three agencies on standalone basis.

Further, ICRA has withdrawn the ratings assigned to the Non-Convertible Debentures (NCDs) amounting to Rs. 504.40 crores pursuant to the redemption of the Non-Convertible Debentures. The upgrade reflects Aadhar’s established track record in the affordable housing segment, strong capitalisation, healthy earnings profile and comfortable asset quality. ICRA also highlighted the company’s geographically diversified presence, established underwriting framework and portfolio management practices, which continue to support its credit profile.

Key Highlights:

ICRA has upgraded Aadhar’s ratings to ‘ICRA AA+’ from ‘ICRA AA’ and revised the outlook to Stable.

The upgrade factors in Aadhar’s strong capitalisation and ability to support its long-term growth plans.

Aadhar’s established franchise in affordable housing, geographically diversified portfolio and granular retail-focused book continue to support its credit profile.

The company’s healthy earnings profile is supported by healthy net interest margins, stable operating expenses and controlled credit costs.

ICRA noted that prudent underwriting norms and portfolio management mechanisms have kept asset quality comfortable over the years.

Aadhar continues to have access to diversified sources of funding, including banks, National Housing Bank, NCDs, ECBs, commercial paper and direct assignment.

Commenting on the rating upgrade, Mr. Rishi Anand, Managing Director & CEO, Aadhar Housing Finance Limited, said, “An ICRA AA+ rating is a reflection of the trust our customers and stakeholders place in Aadhar Housing Finance. For us, financial strength is meaningful when it enables us to serve more families with greater confidence, accessibility and consistency. As we deepen our presence across underserved markets, we remain committed to making the journey to homeownership simpler, more transparent and more accessible for every customer we serve. This also opens way for additional funding avenues with receiving AA+ rating from all three agencies.”

As of June 30, 2026, Aadhar’s assets under management stood at approximately Rs 31,400 crore, with a network of over 630 branches across 22 states and union territories. The company’s capital adequacy ratio stood at 43.4%, while its return on assets was 4.0% in the first quarter of FY27.