Ladies and gentlemen, good day, and welcome to Aadhar Housing Finance Q3 FY 2026 Earnings Conference Call, hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Renish Bhuva from ICICI Securities Limited. Thank you, and over to you, sir.
Thank you. Hi, good evening, everyone, and welcome to Aadhar Housing Q3 FY 2026 earnings call. On behalf of ICICI Securities, I would like to thank Aadhar management team for giving us the opportunity to host this call. Today, we have with us the entire top management team of Aadhar, represented by Mr. Deo Shankar Tripathi, Executive Vice Chairman; Mr. Rishi Anand, MD and CEO; Mr. Rajesh Viswanathan, CFO; Mr. Sanjay Mulchandani, Investor Relations. I will now hand over the call to Mr. Rishi Anand for his opening remarks, and then we'll open the floor for Q&A. Over to you, sir.
Thank you very much, Renish, and a very good evening to you all. Thank you for joining us this late evening to discuss Aadhar Housing Finance performance for third quarter and nine months ended December 31st, 2025. I would like to begin by wishing all of you a very happy and prosperous New Year. The third quarter has been significant for the Indian housing finance sector, with RBI reducing policy repo rate by additional 25 basis points in December, bringing it down to 5.25%. This marks a cumulative easing of 125 basis points in 2025, which has significantly pushed home buying affordability, particularly in the affordable and mid segments, where customers are more sensitive to EMI movements. Furthermore, we are seeing a tangible benefit out of GST 2.0 framework.
The reduction in GST on construction inputs, like cement and brick, is lowering the cost for developers and improving project viability. The combination of lower borrowing costs and resilient buyer sentiment positions the housing finance market on a strong footing for 2026. Overall, the combination of supportive policy measures, easing borrowing costs, and sustained end-user demand provides a constructive backdrop for affordable housing finance sector. Moving to Aadhar's performance for the quarter, I am happy to share that we continue to deliver healthy growth while maintaining strong portfolio quality. As of December 31st, 2025, our AUM stood at INR 28,790 crores, registering a 20% year-on-year growth.
Disbursement for nine months, FY 2026, stood at INR 6,469 crores, with a 15% YoY increase, and PAT stood at INR 797 crores, registering a growth of 20%, reflecting steady lending momentum across our core segments. These numbers reinforces our confidence on the historical guidance that we have given during the last three quarters and further boosts our confidence as we enter quarter four. Our portfolio remains entirely secured, with home loans and loan against property continuing to be well-balanced within the book. Asset quality remains well contained. Gross NPA stood at 1.38%, a sequential improvement of four basis points versus last quarter. Collection efficiency remained upward of 99% during the third quarter. Importantly, early bucket delinquencies remained stable, and stage two asset continues to show improvement by 20 basis points compared to the last quarter.
1+ DPD also reflects an improvement of 30 basis points on sequential basis, reflecting the effectiveness of our underwriting discipline and field-level collection process. Our average ticket size stands at INR 10.7 lakhs, with 60% loan-to-value ratio, reinforcing the resilience of our portfolio. The salaried segment continues to be at 55% of AUM, aligning with our focus on borrowers with stable and predictable income profiles. Balance transfer outflows during the nine-month FY 2026 stood at a comfortable position of 5.6% annualized, a 50 basis points improvement on a YoY basis, which was supported by focused retention efforts and data-driven customer engagement. During the third quarter, we continued to expand our physical presence in a calibrated manner.
We added 10 new branches, taking our total network to 621 branches across 22 states and 552 districts, serving over 3.2 lakh live customers. Our geographic diversification remains strong, with no single state contributing disproportionately to the AUM, which is not greater than 15%. Technology continues to be a key enabler of scale and efficiency. Our TCS-enabled core system and data analytics framework are reducing turnaround times, strengthening governance, and improving customer experience across loan lifecycle. We continue to leverage analytics and machine learning tools to sharpen credit assessment, monitor early warning signals, and support scalable growth. The Pradhan Mantri Awas Yojana, PMAY 2.0 scheme, continues to play a supportive role in driving demand across low income and affordable segment.
Aadhar continues to lead from the front on this very important initiative of the Government of India, spearheaded by National Housing Bank. 10,000+ customers have already received first tranche of their interest subsidy under this renewed program. The availability of interest subsidy under the PMAY 2.0 has improved affordability for the first-time home buyers, particularly in the EWS/LIG segments. We expect the scheme to gain further traction as customer awareness improves, supporting disbursement growth in the affordable segment. Looking ahead, we remain strongly optimistic about operating environment over the coming quarter. With strong fundamentals, our diversified branch network, and continued policy support for the affordable segment, we remain confident of sustaining our growth trajectory and meeting our guidance for FY 2026, and in the medium term. We are driving a key milestone of crossing INR 30,000 crore AUM by the end of this financial year.
Aadhar remains steadfast in this mission to enable homeownership for low-income families, while delivering consistent and sustainable returns for our stakeholders. Before I hand over to Rajesh, our CFO, to take you through the financial performance, I would like to reinforce that we have a positive outlook for quarter four, FY 2026, and are very confident of meeting our medium-term growth guidance on AUM, asset quality, and all profitability metrics. Over to you, Rajesh.
Thanks, Rishi. Good evening, everyone. I would like to take you through some of the financial data. Some of these have already been covered by Rishi, but I would like to reiterate some of these numbers. In quarter three, FY 2026, our AUM has grown by 20% on a YoY basis.
Our overall borrowings, as at 31 December 2025, stood at INR 17,500 crore, compared to INR 15,100 crore on 31 December 2024, which is a growth of 16% on a YoY basis. The borrowing mix at the end of 31 December 2025, is 50% from banks, NHB share is 22%, NCD share is 21%, and ECBs and others make up the balance of 7%. Our incremental borrowing cost for quarter three, FY 2026, stood at 7.5%, and was 7.9% for a nine months ended FY 2026. We have 41 borrowing relationships.
In quarter three, our NHB borrowings were INR 299 crore, which came in at 6.6%, and for the nine-month period, the NHB borrowing was around INR 600 crore, which came in at a 7.4% cost. The exit cost of funds, as at 31 December 2025, stood at 7.74%. In terms of fixed and floating nature of the book, we run a very disciplined, fixed and floating, nature. 74% of our borrowing and assets both are on floating basis. Undrawn sanctions, as at 31 December 2025, is INR 2,400 crore, of which we have around INR 950 crore, which is still drawable from NHB. Liquidity at the end of quarter three, FY 2026, stood at INR 1,435 crore.
This is balance sheet liquidity. Portfolio yield exit is 13.71 at the end of quarter three, FY 2026, and I'm repeating, the exit cost of funds was 7.74%. The exit spread, hence, stood at 5.97%, as compared to 5.93% at the end of quarter two. Our cost-to-income ratio for nine months, FY 2026, stood at 35.4%, as compared to 35.9% in nine months, FY 2025, an improvement of approximately 50 bps on a YoY basis. This is in line with our guidance, where we had stated that we would like to drop our cost-to-income by around 50 bps for the current financial year.
GNPA, as Rishi has said, has come in at 31 December 2025, at 1.38%, as compared to 1.36% in quarter three, FY 2024, and the NNPA stood at 1% versus 0.9% last and same year. Capital adequacy ratio stood at 43.6% for Tier 1, and 0.5% for Tier 2. For nine months, FY 2026, the PAT, without the impact of the new labor code, was INR 797 crore, compared to INR 667 crore in nine months, FY 2025, rendering a growth of 20% YoY. EPAC stood at INR 294 crore for quarter three, FY 2026, again, without the impact of the new labor code, compared to INR 239 crore in quarter three, FY 2025, resulting in a growth of 23%.
ROA and ROE were 4.4% and 15.6% respectively. The 15.6% is also impacted, also because of the capital raise of INR 1,000 crore that we had done in last May. For quarter three, the ROA and ROE were 4.6% and 16.5%, as compared to 4.4% and 15.8% in quarter three, FY 2025. Impact of the past service cost due to implementation of the new labor code is INR 16 crore, and in line with the ICAI guidelines, we have shown this as an exceptional item. The number of employees, as at 31st December 2025 on rolls, were 5,200 employees, and off rolls were around 3,800 employees.
We are focusing on maintaining a healthy book and delivering a consistent performance among all metrics, whether it's growth, AUM growth, cost to income, performance of our portfolio, as well as profitability metrics. With that, we can open up for questions.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may please press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Abhishek Kumar Jain from AlfAccurate. Please go ahead.
Thanks for opportunity, and congrats for a strong set of numbers. Sir, you have delivered a very strong growth in the disbursement ahead of your peers. We just wanted to understand what gives you confidence in sustaining it in the fourth quarter and FY 2027, where most of the peers are struggling on these parameters?
Thank you, Abhishek, for the question, and thanks for your wishes and congratulations. What gives us confidence is... See, I will not be able to talk about, you know, what others are doing, but, the way I look at my current numbers, even for January, they are upward of what we delivered in December. So, with the current pace of numbers, I foresee that quarter four is completely protected, and the guidance numbers that we've been giving is completely protected. As we enter 2026, obviously, we'll bring in on table our core competence has always been the branch network, which we are very confident of, and we are expanding branch network, as I indicated even in the last call.
We will keep adding about 40-50 branches year-on-year basis, even as we go ahead in the next financial year. So a combination of multiple things, gives us the confidence that we will be able to deliver our commitments.
So can we expect that 20% kind of the disbursement growth in the next quarter onwards?
I would rather if I were to give a, this return for the next financial year?
Yeah, yes, sir.
So, let us look at the current financial year right now. Current financial year, AUM, which should be upward of 20%, disbursement will be upward of close to about 16, 16%-17%. Similarly, the similar trends we would want to maintain next year, and that's where the confidence comes from.
Okay, sir. My next question is Stage 2 assets, where we have seen a very good improvement. What future improvement, broad-based or driven by specific geographies like Surat and Tamil Nadu?
I think it's answering your question about stage two improvement, it is pretty broad-based. We wouldn't be able to specifically link it to any particular geography. Honestly, just preempting a question on this one, we are not seeing any specific geography, geographies behaving very, very badly or very superbly, in the sense that whatever was, has been our performance of our portfolio for the last three, four quarters, is sort of showing itself up in this quarter also. So neither has there been any drastic improvement or drastic deterioration.
However, we are very happy with the way our Stage 2 has been consistently dropping by 20 basis points consistently for the last two quarters, which we believe is a good sign for maintaining the overall health of the portfolio and to, for stopping slippages into Stage 3, which is a 90-plus portfolio.
Yeah, if I can add to that, Rajesh, Abhishek, you had a very specific point pointing out a state called Tamil Nadu. So Tamil Nadu, I can understand where the question is coming from. For us, Tamil Nadu, we've seen I would say, substantial improvement on delinquency trends, which is 1+ and 90+. And if I can give a number, 20 to 25% growth on disbursement and AUM.
So for us, Tamil Nadu has been a good location.
Okay, sir. And my last question on the PMAY 2.0 incentives. So can you give us few updates on the approval timeline, disbursement linkage? And, in the upcoming budget, are there any additional policy measures or incentives Housing Finance Company is looking for or expecting for?
So, one is PMAY update I gave in my speech, and I told that we are a company which is leading from the front. We are the highest subsidy takers today for our customers. 10,000 plus customers have already availed the subsidy. Actually, the traction of PMAY 2.0 has happened in the last, I would say, one and a half quarters. The total process starts only when we disburse the loans, and the TAT of MoHUA, which is where through NHB, the nodal office, where the subsidy comes from, is anywhere between two-three working days, so it's not too much of a turnaround time.
As regards expectation from the budget, I think the last previous budget has already put a lot of things on the table. We, as an industry, will have to first deliver on those. For example, PMAY, GST, overall, you know, funds for stalled projects, et cetera. What we anticipate this time is maybe a redefinition of the word affordable in terms of ticket size. That might just come in.
Got it. Thank you, sir. That's all from my side.
Thank you.
Thank you, sir. The next question is from the line of Arun from JM Financial. Please go ahead.
Hi, sir. Thank you for the opportunity. Congratulations on a very good set of numbers. Just a couple of questions. One, credit costs for the quarter have slightly inched up, despite the overall Stage 3 PCR coming down. So against this backdrop, what would be your guidance for credit cost for the full year, FY 2026? Does it change? And also, where do you see your GNPA level settling by the end of the year?
So, so basically, credit cost, if you look at quarter three, FY 2026 is 0.28%, typically. So we are very- because typically, as you would be tracking the industry, what happens in quarter four is, we typically see an improvement in the overall NPA numbers. I'm just going into a second question, which we are, we are currently at about 1.38%, and we basically believe that we may end in a tramline of 1.1%-1.15%. So if you look at that, typically, the credit cost in the last quarter will be very, very minimal or sometimes could surprise us with a negative credit cost also.
So typically, to that extent, so you can assume that whatever credit cost on a YTD basis is there, is going to grow very, very less. And hence, this gives us confidence that our credit cost number for the entire year will be within the 25 basis points, as we had suggested earlier and the guidance that we had given earlier. And that still remains our medium-term guidance when it comes to credit costs, along with our AUM guidance in the range of about 20%-21%. We are confident that we should be maintaining year-end AUM, sorry, year-end NPA numbers in the range of 1.1%-1.15%, and credit costs in the range of about 25-26 basis points. In the medium term, I think we are confident of that.
Second question, specific answer, we should be ending the year at NPA levels of between 1.10% and 1.15% on AUM.
Thank you. Thank you, sir.
Thank you, sir. The next question is from the line of Chintan Shah from ICICI Securities Limited. Please go ahead.
Yeah. Congratulations on the quarter, first of all. And also, sir, yeah, firstly, in terms of the disbursement, the disbursement growth has been quite robust, 14% sequentially. So any specific state which has led to some disbursement? And so given that, we think peers, we have seen many peers have been struggling on that front. So what is leading it to this disbursement? And secondly, on this disbursement, so this is also coming without any compression on the margins front. So going ahead also, do we expect this disbursement trend to continue along with stable margins? Yeah, that's the first question.
Hi, Chintan. You know, I'm struggling while you're asking the question, because all the states have contributed almost equally. So I don't want to pick up any particular state which has given me higher growth or lower growth. Everybody's contributed. Barring one state, you know, which I can point out, Punjab, which is still struggling from coming out of the flood situation, because it takes a little time. Rest, all the states have equally contributed. So, as regards margin, are we confident of maintaining those margins as we go ahead in quarter four and end the year? Yes, we are very confident, Chintan.
Sure, sure. So basically, I think, there were some states like Tirupur, Coimbatore, Chennai, which were probably impacted, not for us, but for the industry overall. So those states are also growing at a decent pace. I think you already mentioned, but just wanted to get some-
No. So, Chintan, you know, you're talking about specific cities, which I think I only called out in the last call with regards-
Yeah.
to the tariff impact, if that is the question?
Yeah.
I remember... Yeah, yeah. I remember calling out textile and gems in these four cities would get impacted. But I am also equally surprised looking at our numbers. One thing I want to highlight is, on an AUM level, these cities don't contribute very large. They're all sub 1% for me. But the good part here is, if I look at the last two quarters movement, last three quarters movement, both on OnePlus and on NPAs, all these states have performed very, very good. And if I can just indicatively give you one example, you know, OnePlus drop of over 30 bps, sorry, 3% has happened in Tirupur, and NPA drop of 0.7% has happened in Tirupur.
Similar is the trend in Surat, Chennai and Coimbatore. Overall, a very comfortable zone to be in.
Sure, and that's very pleasant to hear. Sure. Sir, I think on the BT out, if you could just share the number. I think that was 5.4% for H1. So how is the BT out being in this quarter? Yeah.
We are in a similar trend, Chintan. 5.5% is what we have recorded, which is a drop from a 6.1%, YoY basis. From a 6.1, we have come to 5.5%, which is definitely an improvement, and obviously the credit goes to the retention team and the data analytics team.
Sure, sure. So there is no competition as such coming from the larger players, which is likely to also impact this GT, isn't it?
I will not say there is no competition. You know, I would want to say that, you know, the teams here are doing a better job, if that helps.
Got it. Got it. Okay, and thank you. I'll come back and thank you. Thank you, and all the best for the future quarters.
Yeah. Thank you.
Thank you, sir. The next question is from the line of Prithviraj Patil from Investec. Please go ahead.
Hi, thanks for the opportunity. So I just wanted to know the 1+ DPD number for the quarter, and how are plans to expand it to other geographies and the branch expansion? Just give some details on that.
Hi, Prithvi. Thank you for the question. I'll take the second question first. In terms of plan for expansion into new geographies, I, I would say that we are available in all the possible geographies of the country. We are available in 22 states, so there is no more state that is getting added. But we will keep adding 40-50 branches year-on-year, basically, in the states that we are present. If you recall, last time I spoke about our deeper impact strategy, the strategy continues. 30% of, sorry, 30 branches of ours will keep coming in, in the lower category, which is deeper impact, and the balance 20 will keep coming in the urban and, and, and emerging A location. So we'll keep expanding our network in the geographies that we are present.
On the 1+ number, the 1+ number as at December end is 6.86%, which is a 31 basis points improvement on a sequential basis. It was 7.17% at the end of September 2025.
Sure, sir. Thank you. Thanks a lot.
Thank you.
Thank you, sir. The next question is from the line of Siraj Khan from Ascendancy Capital. Please go ahead.
Thank you for the opportunity. Firstly, I wanted to know, I mean, basis the numbers that I'm seeing in the, PPT, the YoY growth in the NHL, NHL disbursement is around 25%, and the HL is only 11%. So, I mean, are we, you know, focusing more on NHL or is there like a rollover effect happening? Because 11% growth in the HL, HL disbursement seems a bit low. So are we seeing a little bit of, like, going slow for any specific reason, or this is by, you know, rollover of any disbursement in the coming quarter?
Thank you, Siraj, for the question. In fact, if you look at our quarter-over-quarter performance, our home loan has grown by about 14, 14.5%, and non-housing has grown by 9%. So it's the other way around, and, and it's an impact of the refocus that we did post the tariff issues, et cetera. A slight refocus has been done, and it's interim. So will I go back and start doing a little more of NHL as we go ahead? Yes, we will. But for the time being, we kind of, I would say, kind of cautioned our teams, and that's how the output is. Home loan is, again, I'll give the numbers. Home loan has grown at 14% on a quarter-over-quarter basis, and non-housing has grown at 9%.
Okay. Uh-
On a YoY 9-month basis, home loan has grown by 11.5%, and non-housing by about 24%.
Correct. So I was referring to that. I was referring to that itself, because in the PPT, the nine-month, nine-month comparable, where it is 22.55 and back. So, so this is by design, that we are consciously doing something.
It is completely by design. You know, 70/30 is the number that the regulator allows us to do, and that's where we want to be. We don't want to breach that point. So at any given point in time, on an AUM basis, we will—we are today at about 27%, if I'm not mistaken. Sanjay, you can correct me. 27% NHL. We still have some room, so we're going to be maintaining a 30%, act on that.
This is not a reflection on anything with respect to a slowdown in the demand in the affordable segment or anything like that?
No, not at all.
Just to understand.
Okay.
Not at all, sir.
So now, because we are going slightly higher on the, you know, NHL side, and just to confirm, we have not taken any PLR cuts and with respect to an outlook on that, because we have held the yields at a good, good place for the last four, five quarters. That 125 basis that you had mentioned, and it will happen. On the ground, we are seeing that there is a lot of competition. So overall yields on onboarding must be lower. Where does the yield trajectory go, and what is the timeline that you see with respect to the PLR, PLR cut, and how much will be transferred, transmitted by you?
So, as we had explained in the past 2 calls, in the case of downward trajectory of interest rates, we are also morally and regulatory required to pass on the interest rate benefit to the, to our customers who are on a floating rate basis. And as you would know, we are 75% of our book is broadly on a floating rate basis. In today's ALCO, the ALCO has decided to drop our rates by 15 bps, from February 2026. It could be applied between 10th and 15th of February 2026. A 15 bps drop, which will be impacting 75% or benefiting 75% of the customers. So technically, that pass-through will be to the range of approximately 12 bps, which will happen from February.
As has been our basis, what will happen is the last three months of business will get this benefit over the next three months. For example, January business will get the benefit in May, December business will get the benefit in April, and the last benefit will get in the month of March. So basically, that's the way we have taken on the way up. On the way down, we will be doing it in this way. We believe on the cost of funds basis, we are currently at 7.74%. Maybe as we enter quarter four, we may have a two-three basis points improvement in our cost of funds. Beyond that, I don't think, because we have already maxed out on the pass-through, to a great extent.
If the banks have decided to pass through more MCLR cuts, probably we may be benefited, but otherwise, we broadly believe that another 3-4 bps may come through. So anyhow, I think as we end the year, we probably will end the year, we currently are at about 5.95%+ on spread. I think as we end the year, we may end in a range of approximately, 5.8% spread, which importantly is about 10-11 bps better than the exit spread as at March 31, 2025. So typically, for the whole year, we are protected, and the exit spread that we would have in March is projected to be at least 10-11 bps better than when we entered, the current financial year.
Thank you. I'll join back in the queue.
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Maulik Chaudhary from Monarch Networth Capital Limited. Please go ahead.
Hello. Hello, sir, am I audible?
Yes, sir.
Yes, very much, Maulik, yes.
Yeah, yeah, congrats on the good result. So I just have one question. Just wanted to get your perspective on the competition, like, where is the broader narrative that the competition is rising? So just wanted to know, sir, know your take on this.
So Maulik, you know, when we talk about competition, it's a broad-based word. We will have to look at various segments. For example, you know, there is competition in the prime segment, and there is affordable segment, and then there is low-income segment. And we operate in the low-income segment, where our average ticket size... And low-income segment is typically those companies which operate in average ticket size of, you know, below 15 lakhs, that's where we operate. Are we seeing any big traction here? I would defer, and I would say no, we are not seeing any big traction here. Is there competition in the affordable space? Today, the affordable definition goes up to loans up to, private sector definition goes up to INR 50 lakh of loans.
So, yes, there is some traction happening there, and there will always be a 5%-7% overlap. In the low-income space that we operate, we are not seeing big traction. Point number two here is, to be noted, is that we keep talking about, you know, 620 branches. Out of the 620-odd branches, about 150 branches happen to be in the urban locations for us, and rest 450-plus branches happen to be the emerging locations. So as we go down into deeper impact locations and emerging locations, the competitive intensity definitely goes down. You know, so that's how we will have to look at it.
Okay, sir. Thank you. Thank you for the answer.
So basically, you know, when I say no traction means it is competition is less.
Yeah, yeah, yeah. Okay.
Thank you, sir. The next question is from the line of Siraj Khan from Ascendancy Capital. Please go ahead.
Thank you for the follow-up. Sir, you were mentioning that, you're still, if, if the MCLR cuts happen, it will also benefit. Of the total, total book, not the bank, but of the total book, how much is MCLR linked?
The total banks is about 50%, and of the banks, approximately-
80%.
23% is MCLR linked.
Okay, 23% is MCLR linked. So, approximately 12%, so 12% of-
One second, one second. One second, I'll get the... Siraj, one second, I'll just get the number. Just, just hold on for one second.
Not a problem. I'll move on to the next question, and I'll leave it at that. So with respect to the, you know-
Siraj, I got the number. Siraj, I got the number. 67% of bank borrowings is MCLR linked.
Ah, so almost 30,000 is total. Okay. Okay.
Yes. Yes, yes.
Okay. So on the asset quality, I mean, we are, we are holding up, holding up quite good. And as you said that in some of the states that you had earlier called out, you just said the tariffs could, could, could become an issue, but it is positively surprising us. So on, on with respect to the, you know, acceleration for growth, you are, you are saying that at 20% is what are expiring. But, say, in, say, what would be the conditions with respect to some of the states, say, MP or Tamil Nadu or, or some of the other states where you see there is good growth? How much can the growth accelerate to?
I mean, given that you are already going to cross the INR 30,000 crore mark, what is on the upside that you see is... that growth could go to? And will the asset quality remain sustainable in that range? Because you might, you might, you know, see a bit, few of the delinquencies coming here and there.
Okay. Siraj, you know, the way we look at our businesses, there will be, since we are in 22 states, there will be certain states who will give us higher double-digit growth. There will be certain states which will give us lower double-digit growth. There will be certain states, and I can call out states whenever you want. There will be certain states where I, as an organization, don't want to grow beyond single digit, and there are multiple reasons around it. So it's, it is a combination. Since you called out Madhya Pradesh, my. The way we look at Madhya Pradesh, it should give me a YoY growth of about 25%. You know, similarly, a Maharashtra will give me up, close to about 25-30%. So that's how, you know, the dynamic works.
There will be states where, for example, where I have low legal support, I want—might want to grow only single digit because I still have presence there. So it's a combination of multiple things, but overall, as we indicated multiple times on this call, we are very comfortable with a 20% AUM growth in the current financial year and as we enter the next financial year.
Sir, a quick statistic. So what is your funnel with respect to the login to sanction and sanction to disbursement?
See, our current login to sanction ratio would stand anywhere between 65%-66%. And our login to disbursement would range about 39%-40% today.
This is on count, I believe?
Oh, that's, that's on volumes. Count is more or less similar, 1% here and there, so count is more or less similar.
Understood, understood. And because why am I, why am I asking this is because, as you say that you, you try, you try to maintain 20, 20% growth sustainably over the next, over the medium term two-three years. But 20% growth breakdown will be what? I mean, how much of it would be ATS led? How much of it would be, say, your, branch expansion or something? And so, how, so how much will be this, what will be the breakdown for this, for this 20% or whatever you have?
Yeah, I think broadly, to look at it, as 5%-6% will be typically linked to inflation. And broadly, the balance will be a combination of productivity improvements, which will happen with our existing mature branches. And 5%-6% will be the incremental business which the branches set up in the last 18 months, which start providing in the next financial year.
Right.
So that's a broad way of looking at 6% productivity gains, 6% inflation related, and 6% impact of new branches providing more. If I can add to that, Siraj, you know, the branches that I will add next year will not give me traction for next year, they will give me year after that. So that's how the model works. So for example, the branches, 40 or 40, 50 branches that I would have set this year, will start giving me numbers next year. So that's the combination of the three things.
General decision period is what? 15-18 months, I believe?
Yes, depends on the, depends on the size of the branch. We have four, five categories of branches, starts with sales office, goes up to large setups. So anywhere between 12-18 months, depending on the type of branch, is where it breaks in.
So, with your experience, so say, if you set up, say, a sales office, in, say, 18 months' time, it would reach up to, say, the medium, middle level, say, the small branch?
No, I will tell you how, the way we look at it, if I set up a sales office within nine months, exactly nine months, it has- it should break even, and, after that, it, it should all be adding to the bottom line.
Understood.
What Rishi was alluding, what Rishi was alluding to, sales office is the lowest, branch type category of... That will take nine months, and the highest branch, which will be a city branch and an urban branch, may take anywhere between 15-18 months, because obviously the target for him is also higher compared to a, to a sales office.
Yes. Right. Right. Thank you very much.
Thank you, Siraj.
Thank you, sir. The next question is from the line of Sonal from Asian Markets Securities. Please go ahead.
Hi, thanks for the opportunity and congrats on the quarter. So I have three-four questions. One is on the co-lending part. So if I look at the numbers, co-lending seems to be a little low this quarter. So if you could just, you know, give us some guidance on how do you see co-lending, you know, fees moving from here on, any targets that you have on the disbursements or on the AUM, from the co-lending part. Second is, if you could just let us know what are the incremental yields, for the quarter.
Also, if you could give us some sense on how your, you know, non-home loan book is behaving, because you've slowed down on disbursements, so any signs that you're seeing of stress over there, or is this more, you know, precautionary, wherein, you know, you've decided to go slow? Some trend, you know, how it is currently in terms of delinquencies and how it was like a year back. And the fourth one is on the acquisition rates, you know, if you could just let us know how the acquisition rates are and whether it has improved or, you know, you're seeing some increase in acquisition currently. Those are my four quick questions.
Yeah. So if we remember the four questions, we will answer. We have forgotten the second question, but on the co-lending that we did, co-lending is a small piece for us. We did only INR 26 crore of co-lending in the current quarter. Previous quarter was approximately INR 97 crore. So co-lending is a smaller piece. For us, we did direct assignment of approximately INR 440 crore in the current financial year, sorry, current quarter. And if you look at it, the way we are looking at co-lending and assignment combination this year is that we have tempered the proportion of co-lending and assignment. And if you look at the income growth, the...
If you look at the growth in the P&L, which is a line item of upfront for the initial recognition of income, that has grown only by 11%, whereas my AUM has grown by 20%. Another point, which I think all of you analysts do understand, is what you see on the face of the P&L is only the upfront initial recognition we do on new assignment that we do. Of the assignments that we have done in the past, there is also an unwinding of upfront profit. So the net impact for the nine-month period is to the total of approximately INR 22-23 crore, which is a net impact on the nine months' profit. So I think from that perspective, this is a very important number.
So on the full nine-month PAT, the impact on the nine-month PAT of the overall securitization and co-lending is only to the extent, the net extent of INR 28 crore. It was not 23, 25, it was INR 28 crore. So on the total profit of, for the nine-month period, only a net income of INR 28 crore has come from co-lending, net of what has been, unwound out of previous years' co-lending that we did. Second question, if I was not mistaken, was on... or third question, was on non-home loans, and are you seeing the performance and behavior of non-home loan portfolio?
Okay. So on non-home loan, let me give you a few numbers. One is on an overall basis, YoY, home loan has grown close to about 18%, non-home loan, close to about 25%. In terms of yields, you know, there is a differential of about. So in terms of NPA, there is a differential of about 65-70 basis points. But incrementally, if you look at, you should also look at in correlation with the yields. Risk-adjusted yields are upward of 300 basis points. So that's how we look at NHL versus HL.
What was the next question? Sorry, Sonal, if you want to come. Employee attrition? So employee attrition at the company level, if I, if I remove regret, attrition is about close to about 22%.
What was this number a year back?
Year back number. So I come back to you, Sonal, on this. We have to get back on that.
Sure, sure.
Sorry about that.
Sir, my question, no worries, sir. On non-housing loans, so basically just wanted to understand how is the book behaving? I mean, is it similar or, you know, is it improving or, you know, because you've kind of tightened the credit filters over there. So, generally, what we hear, commentary from others is, you know, they are seeing some stress over there. So just wanted to know.
No. So, if I were to talk of behavior in the last, let's say, four or five quarters, since the time we've also gone ahead and given a caution remark to our teams, the behavior has in fact bettered by about 20 basis points.
Got it. And also incremental yield for the quarter?
Incremental yield of the quarter, huh? 13.1. For the quarter is 13.1.
Okay. That's it from my side. Thank you.
Thank you, Sonal.
Thank you, ma'am. Ladies and gentlemen, to ask question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Siraj Khan from Ascendancy Capital. Please go ahead.
Thank you again. Is there any material change in the repayment behavior? Not the BT out, the prepayment, repayment behavior. I mean, one of our peers was alluding that they are seeing elevated repayments, prepayments in their book. So basically, it's a good thing if we are also seeing that, because that means our book is strong, but are we seeing normal repayment behavior or people are coming to you with a you know, cash and trying to repay and prepay at a much faster than you know, generally seen?
No, I think, Siraj, thanks for the question. I think, if you take the overall AUM runoff for the nine months, FY 2025 was 17.5%, and if you look at nine months, FY 2026, it's only 16.8%. So on an overall basis, our runoff of our opening AUM is lower. Obviously, it was aided by a combination of two factors. One is the lower BT out, which has happened. Second, more importantly, on the specific question of repayment behavior triggered by the customer, we are not seeing any material differentiation between the two periods of the customer coming and doing either a part prepayment or a full foreclosure of the loans. It is behaving quite similar to the trend that we had in the last financial year.
We are very happy with the, with the runoff of our portfolio. In fact, if you remember, we have always been saying that the runoff of the portfolio will be in the range of about 17%-18%. We have entered FY 2026, nine months, that is, December 2025. We have entered at a runoff of about 16.8% on the opening AUM, which we believe is a, which is a very robust, number, which helps into maintaining and, maintaining our overall AUM.
And on the BT out, BT thing, how much of, so the BT that is better than we have, we have saved it, but what, what was the BT out request for? I mean, was it purely for the rate or, like, what was the composition for the request? People are, people are asking for, going to BT out for more top-ups, more rate. What was it, and how much of it was retained? So, like, we got 100 requests for BT. How much were retained, and, what was the composition of the 100 requests?
So, Siraj, if I can take that question. See, BT request is very hard to say. You know, sometimes it's a combination of request for rate and top-up. Sometimes it is only top-up, sometimes it is only rate. We as an organization, we generally avoid doing top-ups in till about 18 months of disbursement of the loan, because we don't want to reevaluate the property. So that's where if the customer still wants to reevaluate the property and go, we would allow him to go. But it's a combination of multiple things.
Sometimes he just comes for rate, and the moment you say: "Okay, fair, I can still look at this rate," he would say: "Give me some top-up also." So it's a combination, very difficult to point out, but approximately, I would say 25%-30% would come for rate requirements.
Okay. And like, so what was the number of requests, if you can give, or if you could give me, like, a percentage of how many requests that had come for BT? How much did you retain?
Apologies here, Siraj. I am not-
Okay.
Having that number ready with me, but I will ensure that Sanjay gives that number to you.
Sure, sure, sure. Thank you. Thank you.
Thank you, Siraj.
Thank you, sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.
Thank you. Thank you, friends, for joining us on the call on a Friday evening. I hope we have been able to answer all your questions. Again, I should reiterate, we believe as management, we have delivered consistently, not only this quarter, but the whole financial year. And we are on our guidance that we had set out at the start of the year in terms of AUM growth, disbursement, profitability, cost to income. I think both for the three months period as well as the nine months period, we have achieved that. And as Rishi has alluded during the call, we are quite confident of achieving that both quarter four and near-term future. So we look really forward to the closure of quarter four and as we get into FY 2027.
And, we will be happy to take any further questions if anyone has. They can get in touch with our investor relations team, and happy to take those questions. And as one of the questioners said, we would also like to see a good budget, and a budget, yeah, which supports the low income and affordable housing industry. Yes, definitely. With those words, I think we can get the call to end. Thank you from the management side. Thank you, everyone. Thank you so much.
Thank you, sir. On behalf of ICICI Securities Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.