Archive · 12 Aug 2026
Affordable Housing Finance Stocks Post 30%+ Growth with Strong Margins
Some companies in India help families buy small homes by giving them loans.
These are called affordable housing finance companies.
They lend smaller amounts, like five to twelve lakh rupees, to people who do not earn very much.
In the April-to-June 2026 months, three of these companies did really well.
They gave out many more loans than before, and they made good money from interest.
Aavas, Home First, and Aptus all grew their lending by about a third or more.
Their profits also went up, by around 19% to 34%.
One reason for this is a government program called PMAY-U 2.0 that helps poor families get homes.
The companies also earn higher margins than bigger lenders like Bajaj Housing Finance.
That is why investors are watching these stocks closely.
Aavas Financiers' disbursements grew nearly 41% year-on-year to Rs 1,613.9 crore, with NIMs at 7.7% and net profit up 23% to Rs 171.3 crore.
Home First Finance Company India's disbursements rose 31% y-o-y to Rs 1,628.4 crore, lifting net profit 34.5% to Rs 159.8 crore.
Aptus Value Housing Finance India posted 36% disbursement growth to Rs 1,053 crore and an industry-leading 9% spread, with net profit up 19% to Rs 260.9 crore.
Affordable housing finance companies reported NIMs of 5.8% to 7.7% in the June 2026 quarter, well above Bajaj Housing Finance's 3.7%.
Growth is fueled by the government's PMAY-U 2.0 scheme, which targets housing for 1 crore urban poor and lower middle-class families from 2024 to 2029.
- Who
- Aavas Financiers, Home First Finance Company India and Aptus Value Housing Finance India, compared with Bajaj Housing Finance.
- What
- Reported strong June 2026 quarter results, with disbursement growth of 31% to 41%, high net interest margins and double-digit profit growth.
- When
- June 2026 quarter, with figures compared year-on-year.
- Where
- India, covering urban and rural areas and states including Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh, Tamil Nadu and Telangana.
- Why
- Government policy, led by PMAY-U 2.0, promotes home ownership among economically weaker sections, boosting demand for small-ticket home loans.
- NIM range (affordable housing finance companies)
- 5.8% to 7.7% in June 2026 quarter
- Bajaj Housing Finance NIM
- 3.7%
- Aavas Financiers disbursement growth
- ~41% y-o-y to Rs 1,613.9 crore
- Home First Finance disbursement growth
- 31% y-o-y to Rs 1,628.4 crore
- Aptus Value Housing disbursement growth
- 36% y-o-y to Rs 1,053 crore
- Highest spread
- 9% (Aptus Value Housing Finance India)
- PMAY-U 2.0 target
- Housing for 1 crore urban poor and lower middle-class families, 2024-2029
- Return on Equity
- Aptus 20.1%, Home First 15.7%, Aavas 13.9%, Bajaj 12.1%