Jefferies, Axis and HDFC Securities maintain a positive view on Aptus Value Housing Finance; here's why

Affordable housing finance player Aptus Value Housing Finance has remained in focus after reporting a strong Q4FY26 performance, supported by improving disbursement momentum, healthy profitability and continued expansion in its loan book.

Despite rising competition and moderation in housing demand across segments, analysts remain constructive on the company due to its strong return ratios, steady asset quality and expansion strategy beyond core geographies. The company’s focus on technology upgrades, rural customers and higher-ticket loans has also strengthened optimism around medium-term growth prospects.

The Aptus Value stock has been volatile in recent times, rising 6% in 1 week, 23% in 1 month. However, it shed 3% in 6 months and 15% in the last 1 year. The stock hit its 52-week low of ₹364.85 in August 2025 and 193.50 in March 2026. In today's deals, it ended 4.59% lower at ₹274.40 on BSE.

Aptus Value Housing Finance Q4 Results

Aptus Value Housing Finance reported a 26% YoY rise in net profit to ₹261 crore during the March quarter, compared with ₹207 crore in the corresponding quarter last year. Total income increased 19% YoY to ₹594 crore from ₹499 crore in Q4FY25. For the full financial year FY26, net profit rose 26% to ₹943 crore, while total income climbed 25% to ₹2,246 crore.

The company’s assets under management (AUM) stood at ₹13,107 crore at the end of March 2026, reflecting a 21% YoY growth. Growth was driven by the company’s highest-ever quarterly disbursements of ₹1,242 crore during Q4FY26.

“Q4FY26 saw a further strengthening of our growth momentum, aided by technology enhancements and ongoing process improvements, alongside continued focus on credit quality,” said P Balaji, Managing Director of Aptus Value Housing Finance.

On the asset quality front, gross NPAs increased to 1.5% of gross advances compared with 1.2% a year ago, while net NPAs rose to 1.2% from 0.9%. The company also declared an interim dividend of ₹2.50 per equity share for FY26.

Growth momentum, expansion strategy remain key positives

Analysts believe Aptus continues to benefit from its strong positioning in the affordable housing finance segment, especially among low-income group, self-employed and rural customers. The company has also started focusing on higher ticket-size loans to diversify its customer profile and improve loan growth momentum.

The housing finance company is aggressively expanding its distribution network and plans to add 60 branches during FY27 as it looks to strengthen its presence beyond Tamil Nadu. Brokerages believe this geographic diversification strategy could help support long-term scalability, although growth outside core markets may remain gradual.

Aptus also witnessed improving disbursement trends during Q4FY26, with disbursements rising 16.7% YoY. Analysts noted that the company’s decision to gradually move away from sub- ₹0.7 million average ticket-size loans had temporarily affected growth earlier, but loan growth is now stabilising.

“APTUS is poised to deliver ~20-22% AUM growth, along with strong profitability (RoE of ~19-20%),” HDFC Securities said.

Brokerages also highlighted that while net interest margins may moderate because of lower lending rates and a shift towards slightly higher ticket-size loans, stable credit costs and improving operating efficiencies could continue supporting earnings growth.

Axis Securities maintained a BUY rating on the stock with an unchanged target price of ₹350 per share, implying a potential upside of 27% from current levels. The brokerage expects AUM growth to remain healthy at nearly 23% CAGR during FY27-28, supported by improving disbursement momentum and healthy April trends.

“We believe current valuations are reasonable, and re-rating would be contingent on a sustainable pick-up in growth and improvement in asset quality,” Axis Securities said.

Axis Securities also expects Aptus to deliver RoA of 7.3-7.6% and RoE of 20-21% during FY27-28, despite some pressure on NIMs due to lower yields in incremental housing loans.

Meanwhile, HDFC Securities retained an ADD rating with a revised target price of ₹305. The brokerage said Aptus’ earnings remained broadly in line with expectations, supported by improving business momentum, strong other income and stable credit costs. HDFC Securities expects the company to deliver nearly 20-22% AUM CAGR over the medium term.

Jefferies also maintained a Buy rating on the stock and revised its target price to ₹350 from ₹365 earlier. The brokerage expects FY27 AUM growth of nearly 22% as disbursements recover further and asset quality stabilises. Jefferies forecasts 18% EPS CAGR and 20% RoE over FY26-28.

Overall, brokerages remain positive on Aptus Value Housing Finance because of its strong profitability profile, improving loan growth and expansion strategy. However, analysts continue monitoring margin pressures, competitive intensity and the sustainability of growth momentum in the affordable housing finance segment.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.