Revenue grew 17.06%, but operating margin slipped to 75.02%
Sequentially, expenses grew 3.22% against 0.85% revenue growth, while a 9.63% rise in interest expense pulled net profit down 9.19%.
Filed 31 Jul 2026, 15:51 IST · after market close · Aadhar Housing Finance Ltd (AADHARHFC)
Key takeaways
- Consolidated operating margin narrowed 0.56 percentage points year on year to 75.02% as expenses grew 19.76%, faster than revenue at 17.06%.
- Net profit grew 19.00% year on year to Rs 282.36 cr, while interest expense rose 13.39% and the tax rate edged up 0.11 percentage points.
- The stock's response is not yet available because results were filed after market close; its past eight-result reactions were split 4 up and 4 down, with a 2.17% median absolute move.
Price around the results
Growth continued, but sequential profit momentum weakened
Aadhar Housing Finance's consolidated revenue rose 17.06% year on year, while operating profit grew 16.19%, showing that higher activity did not fully translate into operating earnings. Sequentially, revenue increased only 0.85% and operating profit was broadly flat at a 0.08% rise. Net profit fell 9.19% sequentially as interest expense increased 9.63%.
Higher costs and interest narrowed the earnings conversion
Expenses grew 19.76% year on year against 17.06% revenue growth, reducing operating margin by 0.56 percentage points. The same pattern continued sequentially: expenses rose 3.22% while revenue grew 0.85%, cutting margin by 0.57 percentage points. Other income contributed only 1.18% of profit before tax, so reported profit was not materially dependent on that line; the tax rate also increased 0.11 percentage points year on year and 0.42 percentage points sequentially.
Margin decline extends to a second straight quarter
Operating margin has fallen from 77.35% in Q3FY26 to 75.59% in Q4FY26 and 75.02% in Q1FY27. Despite the recent slippage, the company's margin was 12.01 percentage points above the 63.01% median for 41 Financial Services peers that had reported the quarter.
No immediate market reaction after the after-close filing
The consolidated results were filed after market close, so there was no market reaction to report at the time of filing. Across the past eight result reactions, the stock rose four times and fell four times, with a 2.17% median absolute move, indicating that the current outcome should be judged against a mixed rather than consistently positive or negative history.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹993 cr | ₹985 cr | +0.85% | +17.06% |
| Other income | ₹4 cr | ₹8 cr | -45.91% | +36.08% |
| Expenses | ₹248 cr | ₹240 cr | +3.22% | +19.76% |
| Operating profit | ₹745 cr | ₹744 cr | +0.08% | +16.19% |
| Operating margin (%) | 75.02% | 75.59% | — | — |
| Interest | ₹376 cr | ₹343 cr | +9.63% | +13.39% |
| Depreciation | ₹9 cr | ₹11 cr | -14.06% | +27.95% |
| Profit before tax | ₹364 cr | ₹398 cr | -8.69% | +19.16% |
| Tax | ₹81 cr | ₹87 cr | -6.94% | +19.74% |
| Net profit | ₹282 cr | ₹311 cr | -9.19% | +19.00% |
| EPS (₹) | ₹6.47 | ₹7.16 | -9.64% | +17.64% |
Operating margin of 75.02% compares with a Financial Services sector median of 63.01% across 41 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 75.02% after its second straight quarterly decline.
- Whether expense growth falls below revenue growth after the 19.76% year-on-year increase in expenses.
- Whether interest expense moderates after its 9.63% sequential increase.