APTUS - Aptus Value Hou.

📊 NSE: APTUS 🏢 Finance - Housing 📅 Last Updated: 12/13/2025 18:27

💰 Financial Performance

Revenue Growth by Segment

Total income grew by 27.6% from INR 1,409.2 Cr in FY24 to INR 1,798.4 Cr in FY25. The portfolio is split between Housing Loans (71% of AUM) and Non-Housing/SME loans (29% of AUM). AUM reached INR 10,865 Cr as of March 2025, a 28% CAGR over five years, further growing to INR 11,267 Cr by June 2025.

Geographic Revenue Split

The company is heavily concentrated in Southern India, specifically Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. While specific % splits per state are not provided, these four states represent the vast majority of the INR 10,865 Cr AUM, with gradual expansion starting in Odisha and Maharashtra.

Profitability Margins

Profit After Tax (PAT) increased by 22.8% to INR 751.2 Cr in FY25 from INR 611.9 Cr in FY24. Return on Managed Assets (RoMA) remained robust at 7.3% in FY25 and 7.5% in Q1 FY26. Net Interest Margin (NIM) saw a slight compression from 11.54% in FY24 to 11.17% in FY25 due to rising borrowing costs.

EBITDA Margin

Pre-provision operating profit (PPOP) rose 23% from INR 815 Cr in FY24 to INR 1,003 Cr in FY25. Return on Equity (ROE) improved to 18.76% in FY25 from 17.25% in FY24, driven by higher leverage and efficient operations.

Capital Expenditure

Not disclosed as a single INR figure, but the company is investing in digital interfaces and branch expansion. Tangible Net Worth stood at INR 4,294 Cr as of March 2025, which is expected to fund growth for the next 3-5 years without fresh equity infusion.

Credit Rating & Borrowing

The company maintains a strong capital profile with a CRAR of 71.3% as of June 2025. Borrowing costs are managed through a diversified profile: Banks (53%), NHB (15%), Securitisation (13%), and NCDs (19%). Gearing increased from 1.4x in FY24 to 1.6x in FY25.

⚙️ Operational Drivers

Raw Materials

Not applicable for financial services; the primary 'raw material' is capital/debt. Cost of borrowings increased slightly, impacting NIM by 37 bps YoY.

Import Sources

Not applicable.

Key Suppliers

Key lenders include National Housing Bank (NHB) and various public/private sector banks (34% public, 66% private bank split within the bank borrowing segment).

Capacity Expansion

Staff strength grew to 3,351 employees as of March 2025. The company is expanding its branch network into Maharashtra and Odisha to diversify its geographic footprint beyond South India.

Raw Material Costs

Finance costs are the primary expense. Debt-to-equity ratio stood at 1.59:1 in FY25 compared to 1.38:1 in FY24, reflecting increased utilization of debt to fund the 15% growth in disbursements (INR 3,604 Cr).

Manufacturing Efficiency

Opex to Assets ratio improved from 2.70% in FY24 to 2.63% in FY25, demonstrating economies of scale as the AUM grows faster than operating expenses.

Logistics & Distribution

Distribution is handled through a physical branch network; the company is enhancing its digital interface to reduce long-term customer acquisition costs.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Growth will be driven by geographic expansion into Maharashtra and Odisha, and a strategic shift to focus on loan tickets above INR 7 Lakhs to improve operational efficiency. The company targets self-employed customers in rural/semi-urban areas who are underserved by traditional banks.

Products & Services

Housing loans for purchase/construction, SME loans, and secured business loans (Loan Against Property).

Brand Portfolio

Aptus Value Housing Finance, Aptus Finance India Private Limited (AFIPL).

New Products/Services

Increased focus on the SME and Non-Housing segment via its subsidiary AFIPL, which offers higher yields to support overall profitability.

Market Expansion

Expansion into Odisha and Maharashtra is underway to reduce geographic concentration in South India.

Market Share & Ranking

Not explicitly ranked, but identified as a significant player in the affordable housing finance segment in South India.

Strategic Alliances

Not disclosed; the company operates primarily through its 100% owned subsidiary, AFIPL.

🌍 External Factors

Industry Trends

The affordable housing sector is growing due to government focus on 'Housing for All' and increasing urbanization. Aptus is positioned to benefit from the shift toward formalization of credit for self-employed individuals.

Competitive Landscape

Competes with banks and larger HFCs, but maintains an edge by serving customers with limited income documentation that larger institutions typically reject.

Competitive Moat

The moat is built on a conservative 50% Loan-to-Value (LTV) ratio (81% of portfolio is <50% LTV), providing a massive safety margin. This, combined with in-house collections and deep rural penetration, makes the business model highly resilient.

Macro Economic Sensitivity

Highly sensitive to the economic health of the informal, self-employed sector. GDP slowdowns directly impact the cash flows of their target low-to-middle income borrowers.

Consumer Behavior

Increasing preference for digital banking and faster loan processing, prompting Aptus to invest in digital customer interfaces.

Geopolitical Risks

Low, as operations are entirely domestic within India.

⚖️ Regulatory & Governance

Industry Regulations

Governed by RBI and NHB regulations. Compliance with SARFAESI Act is critical for their recovery process. The company maintains a robust Risk Management Framework (RMF) covering credit, liquidity, and IT risks.

Environmental Compliance

Not a high-impact factor for HFCs, though the company monitors climate transition risks for its borrowers' businesses.

Taxation Policy Impact

Effective tax rate is approximately 23-25% based on PBT of INR 975 Cr and PAT of INR 751 Cr in FY25.

Legal Contingencies

No pending material litigation or one-time settlements with banks were reported for FY25. The company has a clean Secretarial Audit report.

⚠️ Risk Analysis

Key Uncertainties

Asset quality remains the primary uncertainty; while currently healthy at 1.19% GNPA, the informal nature of borrower income makes the portfolio susceptible to economic shocks.