Aptus Value Housing Q2 profit rises 18% to Rs 267 crore as NBFC arm slips
Aptus Value Housing posted Rs 267 crore profit for Q2 FY27 on 4 November 2026, but its small-ticket NBFC arm saw asset quality worsen.
Aptus Value Housing Finance reported a consolidated profit after tax of Rs 267 crore for the September 2026 quarter, up 18% from a year earlier, in results published on 4 November 2026. The south-India-focused lender's assets under management (AUM) grew 20% to Rs 14,177 crore. The headline looks healthy, but the detail shows a split: its housing finance company improved on asset quality while its newer NBFC subsidiary got worse, enough that management raised its credit cost guidance for the year. This account rests on one report, by Investing.com, which says it was produced with AI support and checked by an editor; we could not compare it with the company's own filing.
The headline numbers
According to Investing.com, consolidated figures for the second quarter of FY27 were as follows. AUM, the total loans the company manages, stood at Rs 14,177 crore, up 20%. Disbursements, the new loans given out in the quarter, were Rs 1,153 crore, also up 20%. Profit after tax was Rs 267 crore, up 18%. Return on equity was 20.1% and return on assets 7.7%.
The company's network and customer base grew too. It had 397 branches, up 76 from a year earlier, 4,220 employees, up 14%, and 1.99 lakh customers, up 16%. For the first half of FY27, profit after tax rose 19% to Rs 528 crore. Net worth was Rs 5,467 crore, up 17%.
Aptus lends mainly to self-employed borrowers who build or buy modest homes and often have income that is hard to document. That is a segment where a lender usually earns a high yield, and Aptus did: the report shows a net interest margin (NIM) of 13.2% in the first half, built from a yield on loans of 17.0% and a cost of borrowing of 8.1%, a spread of 8.9%. NIM is the gap between what a lender earns on its loans and what it pays for its money, expressed against its assets. A figure that high is what lets a small lender fund branches and still earn a 7.7% return on assets.
Two lenders under one roof
Aptus runs two arms. The housing finance company (HFC) is the main one, with about 71% of AUM. The NBFC subsidiary makes smaller loans. Their results moved in different directions.
Metric · HFC (standalone) · NBFC subsidiaryAUM · Rs 10,086 crore, up 20% · Rs 4,091 crore, up 22%
Disbursements · Rs 1,526 crore, up 35% · Rs 680 crore, up 12%
Gross NPA · 1.48%, down 5 bps · 2.17%, up 58 bps
Net NPA · 1.12%, down 4 bps · 1.63%, up 43 bps
Credit cost · 25 bps, down 8 bps · 169 bps, up 74 bps
A basis point (bps) is one-hundredth of a percentage point, so the NBFC arm's gross NPA rose by 0.58 percentage points. Gross NPA is the share of loans where the borrower has stopped paying for 90 days or more. Net NPA is that figure after subtracting what the lender has already set aside against it. Credit cost is the amount charged to profit each year for expected loan losses, shown as a share of loans.
What management says about the stress
The report says management traced the stress to specific pockets in Karnataka and to lower-ticket loans, and that it has tightened underwriting, the process of deciding who gets a loan and how much. Because of the NBFC arm, management raised its full-year consolidated credit cost guidance by 5 to 10 basis points. The article did not say what the previous guidance was, so the new level cannot be stated here.
Other asset-quality signals in the report point the same way. Consolidated gross NPA was 1.68%, up 13 basis points from a year earlier, and net NPA was 1.27%, up 10 basis points. Collection efficiency, which measures how much of what was due in the period was actually collected, fell to 98.35% from 99.36%. Loans that are 30 or more days past due rose to 7.08% of the book from 6.34%. Stage 3 assets, which are loans classed as credit-impaired, were Rs 217.8 crore, or 1.7%, and Stage 2 assets, loans where credit risk has risen but not to default, were Rs 699.9 crore, or 5.4%. Total expected-credit-loss provisions were Rs 133.7 crore, about 1.03% of the loan book, and provision coverage was 25%.
None of these are alarming on their own for a lender with a 20% return on equity. But all of them moved in the wrong direction at the same time, and the early-delinquency number (30 days past due) is the one that often leads the others.
Funding and cushions
The report gives a detailed picture of how the lender pays for its growth. In the first half, term loans from banks made up 63.7% of funding, securitisation and direct assignment 18.1%, non-convertible debentures 11.0% and refinance from the National Housing Bank 7.2%. Securitisation means selling a pool of loans to investors to raise cash. Average borrowing tenure was 80 months.
The HFC's capital adequacy ratio, the share of capital held against risk-weighted assets, was 69.2% on 30 September 2026. The report does not give the regulatory minimum, so this desk cannot say how large the cushion is in comparison. Liquidity included Rs 731 crore in cash plus Rs 1,028 crore of bank sanctions not yet drawn, a total of Rs 1,759 crore, with the company projecting Rs 1,984 crore by March 2027.
What it means for borrowers and the sector
For a borrower in this segment, the message is mixed. Aptus plans about 22% AUM growth for the full year and about 70 new branches in FY27, so credit supply from this lender is not shrinking. But management has tightened underwriting on the NBFC arm's smaller loans, so applicants for small-ticket loans, especially in the Karnataka pockets mentioned, may face stricter checks, smaller loan sizes or slower approvals. It also expects third-quarter disbursements to moderate because of weather and the tighter NBFC underwriting, with a recovery in the fourth quarter.
For the wider sector, the relevant point is the contrast between the larger housing finance arm and a smaller-ticket book that is more sensitive to local shocks. The headline "NBFC stress" in the report's title refers to this subsidiary, not to the company as a whole. Whether the pattern is local to Aptus or visible in other small-ticket lenders is a question the single report cannot answer.
For a reader who wants to see how provisions drive profit, the simulator below uses the first-half figures from the report: profit before tax of Rs 669 crore after credit costs of Rs 45 crore, and profit after tax of Rs 528 crore. The tax rate is derived from those two, so treat it as an approximation.
What we do not know
The report does not give the quarterly credit cost for the consolidated company, the previous guidance that was raised, or the extent of the Karnataka exposure. It also does not say how much of the NBFC arm's book is in the affected pockets. Because the article was generated with AI support, its figures should be checked against Aptus's investor presentation and stock-exchange filing before anyone relies on them.
What to watch next
Watch the third-quarter numbers, due after December, for whether the NBFC arm's gross NPA and credit cost keep rising, and whether collection efficiency recovers from 98.35%. Management has said it expects a recovery in disbursements in the fourth quarter. The company's full-year consolidated credit cost, with the new 5 to 10 basis point increase, will show whether the problem stays contained.
Key takeaways
- Aptus Value Housing reported Q2 FY27 profit after tax of Rs 267 crore, up 18%, with AUM of Rs 14,177 crore, up 20%.
- The housing finance arm improved: gross NPA fell 5 basis points to 1.48% and credit cost fell 8 basis points to 25.
- The NBFC subsidiary worsened: gross NPA rose 58 basis points to 2.17% and credit cost rose 74 basis points to 169.
- Management blamed pockets in Karnataka and lower-ticket loans, tightened underwriting, and raised full-year credit cost guidance by 5 to 10 basis points.
- All figures come from one AI-assisted report and need checking against the company's filing.
Sources
- [Investing.com: Aptus Value Housing Q2 FY27 slides: 20% AUM growth amid NBFC stress](https://ph.investing.com/news/stock-market-news/aptus-value-housing-q2-fy27-slides-20-aum-growth-amid-nbfc-stress-93CH-2674390)
Tags: NBFC Quarterly results Asset quality Housing finance Credit costs