Aadhar Housing Finance gets rating upgrade from ICRA to 'AA+/Stable'
ICRA has upgraded Aadhar Housing Finance's rating to AA+, following similar upgrades from CARE and India Ratings.
Aadhar Housing Finance Limited, which focuses on home finance for the low-income segment, has seen an improvement in its credit rating. ICRA has upgraded the rating on the company's debt instruments and bank loan facilities from 'ICRA AA' to 'ICRA AA+/Stable'.
According to the company, CARE had earlier upgraded its rating from 'CARE AA' to 'CARE AA+', while India Ratings had upgraded it from 'IND AA' to 'IND AA+/Stable'. This means the company has now independently received an 'AA+' rating from three different rating agencies.
The rating upgrade takes into account Aadhar Housing Finance's strong capitalisation, its presence in the affordable housing finance segment, its income profile and asset quality. The company's presence spread across different states, its underwriting framework and portfolio management practices have also supported its credit profile, it was stated.
The company's portfolio is mainly focused on retail customers. A healthy net interest margin, stable operating expenses and controlled credit costs are supporting the income profile, it was stated. Meanwhile, after full repayment of non-convertible debentures worth Rs 504.40 crore, ICRA has withdrawn its rating on that instrument.
Aadhar Housing Finance has several sources available for raising funds, including banks, the National Housing Bank, non-convertible debentures (NCD), external commercial borrowing (ECB), commercial paper and direct assignment.
Reacting to the rating upgrade, the company's Managing Director and CEO Rishi Anand said the AA+ rating from ICRA reflects the trust customers and partners have placed in the company. He said the company would focus on expanding its presence in underserved markets while making the home-buying journey easier and more transparent for customers. He also said that receiving the AA+ rating from three agencies has opened up additional avenues for raising funds.
As of June 30, 2026, Aadhar Housing Finance's Assets Under Management (AUM) stood at around Rs 31,400 crore. The company's network spans more than 630 branches across 22 states and union territories.
According to the company, in the first quarter of financial year 2026-27, its Capital Adequacy Ratio stood at 43.4 percent and Return on Assets (RoA) at 4.0 percent. The rating upgrade from ICRA is expected to further support the company's borrowing capacity and its ability to raise funds going forward.
