Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Aptus Value Housing Finance India Ltd (NSE: APTUS) Q4 2026 Earnings Call dated May. 07, 2026
Corporate Participants:
M Anandan — Executive Chairman
P Balaji — Managing Director
Analysts:
Rajiv Mehta — Analyst
Kunal Shah — Analyst
Renish — Analyst
Mayank Mistry — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Good morning ladies and gentlemen. I am Iqra, moderator for this conference. Welcome to the earnings conference call of Aptus Value Housing Finance India Ltd. To discuss its results for the quarter and year ended March 31, 2026. This conference call may contain forward looking statements based on the company’s beliefs, assumptions and expectations. As of today, these statements are subject to risks and uncertainties and actual results may differ materially. At this moment all participants are in the listen only mode.
Later we will conduct a question and answer session. At the time. If you have a question, please press star followed by one on your telephone keyboard. Please note that this conference is being recorded. We have with us today Mr. M. Anandan, Executive Chairman. Mr. P. Balaji, Managing Director. Mr. C. P. Manoharan, Executive Director and Chief Business Officer and Mr. Sanjay Mittal, Chief Financial Officer. I would now like to hand the call to Mr. Anandan for his opening remarks. Thank you. And over to you, sir.
M Anandan — Executive Chairman
Thank you. Good morning ladies and gentlemen. I am Anandan, Executive Chairman of Aptus Value Housing Finance India limited. I warmly welcome you all to the earnings call. We are very happy to present that overall we have demonstrated resilience and robust business growth for Q4 as well as for FY26 and on Q4 26. As you’re aware, we saw strengthening of our growth momentum aided by ongoing process improvements and technology enhancements alongside continued focus on credit quality. Credit quality?
During the quarter we delivered highest quarterly divestments of 1,242 crores. This has come despite not sourcing any loans of less than 7 lakhs of garbage and 7 lakhs. Looking ahead, we expect further improvement in this growth trajectory driven by expansion in New York State’s entry into New York States, Maharashtra and Onesa and deeper penetration in existing markets, channel augmentation, higher average ticket size, calibrated lending rates on incremental loans and improved productivity. Going forward, we are very confident of maintaining a consistent growth of over 20 plus percentage and best in class ROE of 20% plus.
With this I hand over the mic to Mr. Balaji to take you through the business focus and key operating and financial parameters. Thank you. Thank you, sir. Good morning to all. To begin with, I am happy to convey that we have delivered on our guidance across key levers. Be it growth, spreads costs and credit quality and will sustain this trajectory in the coming years. During the year in line with our intent to onboard higher quality customers, we discontinued sanctions below 7 lakhs. While this decision led to temporary moderation and disbursements in Q1 and Q2 we rebounded strongly in Q4.
We witnessed this growth momentum continuing in April 2026 as well as this has helped set a strong foundation for sustained business momentum and reinforced alignment of field execution with our policies. Overall, the year reinforces our belief that affordable housing segment we operate in remains structurally robust and has strong potential for growth. Growth remains our key focus area. To accelerate growth momentum, we are executing a set of targeted high impact initiatives. The first one being geographical expansion.
We expanded our presence in the newer states of Maharashtra and Odisha in FY26 and strengthened our presence in existing states as well leading to a branch network of 339. On account of increasing indications from our new geographies and continued business momentum in our existing geographies we are planning to open around 60 branches in FY27 increasing the next one being increasing the average ticket size partly driven by inflation increasing our ATS is helping us onboard higher quality customers optimizing the next one being optimizing lending rates across segments.
In line with our strategy to onboard higher quality customers and aid growth further, we have optimized interest rates on certain loan ticket size leveraging the benefits from lower borrowing costs and improvement in productivity. As the rate reduction is only for the incremental customers, the impact on the spreads or the NIMS is not very material. Fourth one is the connected channel. In addition to our digital channels, we have expanded our connector partnership across branches. While this is still at a nascent stage, we expect this channel to evolve into a meaningful growth driver over time.
Looking ahead, we expect to deliver sustainable AEM growth of 22% to 24% driven by these initiatives. Our growth is anchored on four strategic pillars. First one is diversified mix focus on self employed customers across housing and business loans with strong presence in Tier 3 and Tire 4 towns. Then the next one is the geographical expansion scaling beyond south into Maharashtra and Odisha while deepening the core markets productivity driving higher output through data led system driven process.
Then the digital excellence leveraging technology across sourcing credit and collections to improve speed, control and efficiency. Now moving on to performance. Major performance highlights are as follows. First is when we talk first relating to business growth and scale. AEM grew by 21% year on year to 13,107 crores Disbursements in Q4FY26 grew 17% year on year and 21% quarter on quarter to 1242 crores. Disbursement in FY26 grew 11% to 4009 crores. Branch network stood at 339 branches as of 31st March adding pertinent branches in FY26.
Now coming to the asset quality, the collection efficiency stood at 100.5% versus 99.1% in the previous quarter. The improvement in collection efficiency led to a dip in our 30 plus to 6.21% which was 6.48% in the last quarter. We closed FY26 with a GNPA of 1.52% as it is 1.19% in FY25. The increase is primarily due to marginal increase in the NTA of NBSC. Net NPA was 1.15% as against 0.89% in FY25. The credit cost for FY26 remained at 50 basis points within our guided range. Now coming to the profitability during the quarter net income margin grew by 24% year on year to 434 crores.
Our spreads improved to 9% driven by decline in cost of funds to 8.1%. Our opex as a percentage of AUM remained at 2.8%. Profit grew 26% year on year to 261 crores translating into an ROA and ROE of 8.2% and 21.2% amongst the highest in the industry. The profit for FY26 rose by 26% to 943 crores during the year. We have declared a dividend of Rupees 4 Rupees 50 paisa including the dividend of Rs 2,050 pesos that was declared in the board meeting held on 6th May 2026. Now coming to the funding during Q4 we raised approximately 980 crores on a consolidated basis primarily through a mix of NCDs, term loans and securitization.
Our liability profile continues to remain well diversified with 58% from banks, NCDs at 15%, securitization including CBS and VA at 19% and the balance through NHB which is at around 9%. We continue to maintain strong liquidity position with total liquidity of 2,057 crores as of March 26th including 1505 crores of undrawn bank sanction, providing us ample headroom to support growth. Now with these remarks I open the floor for the question and answer session. Thank you,
Operator
Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question please press N1 on your telephone keyboard and wait for attend to ask the question. If you would like to withdraw your request you may do so by pressing N2. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question comes from the line of Rajiv Mehta from yes, securities. Please go ahead.
Questions and Answers:
Rajiv Mehta
Yeah, hi, good morning. Many congratulations on very strong numbers. Sir, my first question is on, you know, your Tamil Nadu state growth there is a good revival and I think you’ve been speaking about it that you are trying to drive a revival there. So did anything change in terms of macro factor, in terms of demand, competition and internally, what changed in terms of team stability, team productivity, which drove good comeback growth in Tamil Nadu in this quarter?
M Anandan
If you look at Tamil Nadu, the year on year loan book growth is around 14%. But of course we have made structural changes in terms of employing correct people and then retaining people in Tamil Nadu. But still in Tamil attrition is slightly high. But still we are able to retain people who are able to contribute to the business. Having said that, in Tamil Nadu the competition is slightly higher. And since we are there in Tamil Nadu for last 15, 16 years, if anybody wants to open a branch in Tamil Nadu, the first thing they do is to take people from us.
But still because of various incentive schemes which we have launched and based on productivity based improvements and monitoring systems, we are able to achieve this performance. And going forward we are confident of getting this in place.
Rajiv Mehta
So now that 15 or Peshenya sequential traction that we saw, which was very solid, the momentum is now structural in nature. That’s what we are trying to indicate. Yeah. And what is the incremental ticket sizes in home loans and large quasi home loans that we are now onboarding and what is the incremental lending rate and in the future, how do you see the ticket size, you know, progress, you know, for us, which will help us in, you know, delivering better growth on
M Anandan
The average ticket size, whether it is the housing loan or quasi home loan or small, small business grown that every year we want to increase this by 1 lakh. This is partly driven by inflation and also it helps us onboard higher quality customers. So this is broadly the plan and we’ll be able to, hopefully we’ll be able to achieve this because the field executive and the branch managers are also aligned to this. So that is what we’ll be implementing.
Rajiv Mehta
Got it. Can I just ask one last question? Yeah. In terms of channel augmentation, I mean when you say channel augmentation, engagement with the connectors and all, one is connecting more branches with the local connectors. So where are we in terms of that? You know, setting the connection of, you know, branches in terms of number, how many branches will then have connectors network to go to for and how do we better engage with the connectors so that we get better volume in the local market.
M Anandan
In relation to channel augmentation, there are two things which we are pursuing other than the organic leads that is being generated by the sales officers. See what is happening. One is the digital channel, basically the referral app, the customer reference, the construction ecosystem reference and also the digital social media. That is one thing which we are doing over and above that what is we are also pursuing this connected channel. This connected channel will be an additional channel over and above this organic leads that is getting generated by the sales officer.
So every branch manager has been assigned the responsibility to recruit connectors and they will get and they will be driving the connector channel. So the leads that that are coming from the connectors will be passed on to credit and for other for further processing from the branch manager point of view and that will be pursued. So that’s the plan we have and we launched this sometime in January and the traction is very good and hopefully this will get converted into a good channel augmentation process in the coming year.
Rajiv Mehta
Thank you so much. Best of luck.
M Anandan
Thank you Raju.
Operator
Thank you. Next question is from the line of Kunal Shah from Citigroup. Please go ahead. Mr. Shah, your line is unmuted. Please proceed.
Kunal Shah
Yeah, thanks for taking the question. So, couple of questions. One is on the collection efficiency side generally like Q4 we see a strong buildup. We have crossed 100 but still lower than past couple of years in Q4. So is it like there is still maybe. Obviously we are putting a lot of efforts on the collection but in any of the regions or profile are we seeing the relatively slower recoveries? That’s the first question. And secondly on the off balance sheet item, so we have seen the off balance sheet proportion going up.
So to that extent when we. So to that extent when we look at it on the off balance sheet side, what, what is the kind of scale up like last time you indicated to get to a 6 to 8. We have already crossed that. So will we take the off balance sheet proportion further up rather than pure on book? Aum. Yeah, thanks.
M Anandan
The first thing on the collection efficiency, this is the 100.5% as you rightly said, this quarter saw good collections and this actually worked well. But if you look at the area wise thing Karnataka, there is an. There are. There are small issues in the sense that. So there are issues in collection which we are Trying to sort out through building, through strengthening the collection system there, recruiting more people and recruiting more monitoring people and that kind of a thing. So other than that we are not finding any other place just to add the connections that are on a product wise basis.
If you look at it, you know around 2/3 of our portfolio is in the HL and about 1/3 in the NBFC business. In the NBFC business the collect is just slightly, you know, hit cycle lawyer. In fact even in the NPA grass NPA and npa, the NBHC related prisoners, you know the total Average it is 1.5 or 1.52 gross NPA, the NPA and the NBFC related, non home related it is slightly higher, about 2030 basis points higher. And the agile related portfolio, it is loyal and not only in the gross NPA net NPA in terms of even the collection field collections also slightly lower in the NBA acceleration business that we have recognized and we have strengthened because because of the growth potential and the margins in the NBFC business given the current cost also been fully factored in.
But we are really strengthening our collection staff particularly in that product segment. So that is in terms of the product mix wise and geography wise. Yes, as Mr. Balaji said, Karnataka is an area where the collection percentage is slightly lower than the other geographies. And that we are really very focused. In fact our business growth also we are in fact number of branches and the business growth and the strengthening of the collection shops is really happening in that state. And we understand this is generally the scenario for some of our other competitors.
Also the collection in Karnataka is slightly different that we are really focusing on. Now coming to this, I think you are meaning the direct assignment. We have got a clear policy on this direct assignment. First this is being done for the non housing loan book. And this is also when you do that the principal business criteria on the housing finance company improves. So and also this we are managing it through as a liquidity management tool. So if you look at the direct assignment, we did around 170, 180 crores in this quarter.
And this absolute value of 160 to 180 crores will be maintained every quarter. And as a strategy we might not want to go beyond 10% of the total AEM at any point in time. Now currently it is at around 5%. The deal done. So this is the plan we have on the da. And going forward also this will be monitored and taken care of. Kunal, just to add in the current year we have done about 700 kilos of joint assignment, as you call over a total reimbursements of 4,000 crores. It is coming about, you know, 16, 17% as a percentage of reimbursements.
But if you look at the loan book on 700 crores and the loan book of 13,000 crores, it comes about 5.6% or so. So going forward, as a percentage of your loan book, as Mr. Balaji mentioned, it will be around 10%, which as you know, is much higher than our comparable company. Much lower. Sorry, much lower than other comparable companies, you know, in our space. So going forward, the soft balance sheet joint assignment will be there, but within the guidelines, within the specific percentage that’s been approved by the board.
Kunal Shah
Got it. Perfect. And one more question, if I can squeeze in.
M Anandan
Yeah, yeah, please.
Kunal Shah
So on spreads we saw 10 basis points increase. That’s particularly the funding cost advantage. Do we see the funding, Any repricing benefits still left or. It’s largely done. Okay. And obviously our portfolio on the fixed side is much higher, particularly on the lending side. So that’s also helping them. But here on how should we see the traction on spreads?
M Anandan
If you look at it, we have been. Our incremental cost of funds in the housing finance is around 7.8 or 7.9% and in the NBFC it is between 8.2 to 8.3%. I’m not seeing much improvement. I have not seen any reduction from these rates in, in the coming quarters and there is a likelihood that it can only result in slight increase as well. So this is on the cost of borrowings, of course, since we have also calibrated some incremental lending rates on some of the housing loan ticket prices, there can be a slight drop in the yields as well.
So we have already worked it out. The impact on the AEM in terms of yields will be around 0.1%. And we are planning to have the same rate of borrowing, which is currently at around 8.1% in the coming year as well. But even if assuming if my incremental cost of borrowings is going to go up by 20%, sorry, 0.2% then what will happen is the total borrowing cost will increase by 0.08%. So the net impact on the yield will be around 0.18%. So this is what has been factored in our business plan as well for the next year.
So going forward, this will be the thing which we have projected.
Kunal Shah
Perfect. Yeah, thanks. Thanks. And all the best.
Operator
Thank you. Next question is from the line of Danish from ICICI securities Ltd. Please go ahead.
Renish
Yeah, hi sir. And congratulations. Good set of numbers. Yeah. Hi sir, just two, three things. So one on the disbursement yield side, right. So in FY26, you know there has been a couple of changes we have made to our pricing. So one of course is the Discontinuing disbursement below 7 lakh rupees ticket size which I am assuming should be more than 20% yielding product for us. And also as you already mentioned that we have calibrated rates in some of the ticket size. So Nitepe, when we look at the book yield which is, you know, closer to 17 odd percent, how the disbursement yields are trending, let’s say over the last 2 3/4, especially post exiting below 7 lakh rupees ticket sales.
M Anandan
If you look at Ramesh, since till December we have not changed any rates in January, we have just reduced the interest rates for the housing loan customers alone. And this only for the housing loan customers. And because of that in Q4 the disbursement yield dropped by around 0.1%. Now going forward in the month of April. Also we have slightly calibrated on the interest rates only for this housing loan and that too on certain ticket sizes. So in the coming year the likely impact on the disbursement yield is likely to be at around.
And on the loan book it is going to be around 0.96%. So this is broadly the plan. So this is what we have done as of now.
Renish
So there is no impact of, you know, we exiting below 700 rupees ticket size on the yields. Yet
M Anandan
That is not actually, that is not actually playing out because the, the yields which we were charging less than 7 lakhs or greater than 7 lakhs were never different earlier.
Renish
Okay, okay, okay, okay. Got it, got it. And sir, secondly, you know, on the profitability front, right, so obviously Q4 roe looks very strong at 21 odd percent. But going ahead, what kind of a sustainable roe you expect? You know, the waiver might evolve over next two to three years, you know, in terms of better quality, slightly lower rate, etc. So how do you see overall profitability trending over next two to three years?
M Anandan
If you recast the ROE which is currently now and then extrapolated for the reducing lending rate and also the slight increase in the credit cost? I think I told the spread, the impact on the spread is likely to be around 0.15 to 0.2%. Correct. So even if that is hopefully we’ll be able to compensate it by way of productivity and also maybe slight reduction in the opex which can happen or which might not happen even if assuming the OPEX is likely to be at 2.7 and credit cost even if you have taken from 0.5 to 0.6%.
I mean on a hypothetical side still my ROEs and ROAs will be ROE will because of leverage can come down but ROEs will be much above 20%. So this is. We have actually planned it this way for the next two years as well. So definitely we are very confident of as Mr. Anandan told 20 plus growth, sustainable 20% plus growth and a sustainable 20% ROE. That is what this address meant for. Just to add actually our ROE is progressively going up during the last four, five years if I recall we’ve sort of improved from about 14% progressively.
Now it has in terms of milestone in the fourth quarter we have really crossed 20% actually in fourth quarter if you see it is really touched 21% ROE which is you are aware is the best in class ROE return because we very firmly believe our economic value add value creation is is as important as the growth While we will continue to pursue strong business growth at the same time we are very conscious of the financial metrics particularly the economic value add and ROE as well. Very consciously we’ve been working on it last four, five years and going forward also there is enough strengths have been built into the company to sustain this rate.
In fact if not improving the rates are there.
Renish
Got it, got it. And sir, just last question on the borrowing mix side, you know so we saw NHP borrowing coming down all the way to 900% versus 15% previously. So just wanted to know is there any particular reason why there is a lower NHP drawdown in FY26 and in 27 or. Yeah,
M Anandan
No actually I mean for the last year we didn’t borrow from energy because we were able to get better cost funds as compared to energy. That’s why we went for the other other sources. Having said that we have already filed an application for a 500 crore refinance facility from energy and hopefully that will come in another two, three months the sanctions come and this will be drawing that. So actually the specific reason is we had better borrowing sources which was actually the cost of that was less than the NHB borrowing and that’s why we went for that thing.
Now that NHB has also reduced the time lending credit and they are able to give us because at a better rate we’ll be getting into these NSB borrowings as well and going forward, I mean if you look at our book also, it is almost 82% fixed. So NSB borrowing, if it comes to us, it will be on a fixed rate basis which will help manage my interest rate risk as well.
Renish
Got it. I was just about to ask you that. Only sir, in case, let us say in FY27 the NHB borrowing share goes up to, you know, 59% then ideally that should help us, you know, keeping borrowing cost even at current level. Even let us say the interest rate goes up. I mean, is that the fair assumption?
M Anandan
It’s a fair assumption. But if you’re building in the business plan, it’s better you build in a point.
Renish
Let us say that should be upside risk. Yeah. Yeah. Okay. Okay sir, thank you. Investor fl.
M Anandan
Thank you.
Operator
Thank you. Next question is from the line of Mayank Mistry from Antique Stockbroking Ltd. Please go ahead.
Rajiv Mehta
Yeah. Hi sir, thanks for the opportunity and congrats on a good quarter. Sir, my question is mainly first of all on the branch expansion side, you said you will be expanding 60 branches and largely coming from new geography. Can you quantify, sir, and how much could be from new geographies? And secondly also now that you are comfortable in both of these geographies like Mary and Orissa, in terms of expansion, are you exploring any other geography sooner? Maybe within a year or maybe within next couple of years, you know, because right now it looks like it is pretty skewed into six states.
I understand that you have have been proficient enough in, you know, going deeper into geographies. But yeah, it still leads to a concentration. So any, any comment on that part?
M Anandan
We are well aware of that and that’s where we are still this new geography. And if you look at it, the plan of opening 60 branches, 30 branches will come in Maharashtra and Odisha. The additional the balance will come in Andhra Pradesh and Teltana. And if everything goes well, we have also recruited a senior person taking care of the Maharashtra who has got experience of handling and building a business in MT and particular Slave. If everything goes well, maybe we might open one or two branches in the other states as well.
But it will depend on how the whole expansion plan progresses. The thought is there to get into the new state, but it will be done at the appropriate time.
Rajiv Mehta
Sure, sir. And on the borrowing side again, your securitization mix have significantly increased in this quarter. So what must be the, you know, differential you must be getting in doing securitization is against NCDs which have actually gone down
M Anandan
Actually securitization has not gone up. It is actually 11%. If you look at in the earlier presentation we didn’t include BA as the source of funding in the P chart. So that’s why if you look at it 11 and 8% is the DA and that’s what has come as on the total borrowings. So if the securitization is still at 11% last time also it was around 10, 11% things only. Securitization also helps us in terms of to raise a longer tenor debt. So compared to the other that the securitization also carries slightly longer tenor than other sources.
Rajiv Mehta
Okay, so sir, what would be the. If you can give us a interest rate on you are getting on mc?
M Anandan
I didn’t get your
Rajiv Mehta
Question. The cost of fund of NCD from NCDs
M Anandan
From NCD. I mean we have done a securitization deal in, in the NBFC in the Q in Q4 at 8%. So that is a growing rate. I mean slightly 8.1, 8.2% duration is also longer. Okay,
Mayank Mistry
Thank
M Anandan
You.
Operator
Thank you. Next question is from the line of vision Chavate from Kotech Institutional Equities. Please go ahead.
Mayank Mistry
Hi, thanks for taking my question. Just a small one. If you could give some color of the incremental disbursement that you have done in this quarter, how would the disbursement growth, let’s say wake up between salaried and self employed? And I think if I just look at the overall business mix change on a quarter, on quarter basis there seems to be a fairly sharp swing in favor of self employed from salaried. So if you could give some color on that, that would be helpful.
M Anandan
I mean the self employed is around 78% and 22% is the salary and on an overall basis that will still be continued. So that is the philosophy we have and that will continue.
Mayank Mistry
Okay, sure. The presentation actually says that self employed is 80. So maybe that is where I think maybe there was this.
M Anandan
Okay,
Mayank Mistry
Okay, sure. So, so, and, and, and the, and the, and the, and the mix in, in your view sort of, you know, broadly doesn’t change.
M Anandan
Yeah, yes,
Mayank Mistry
Sure. And, and the stress is probably more geographic rather than sector specific. Is what what one is reading.
M Anandan
Yes, yes, yes,
Mayank Mistry
Got it. And just one small one is on the operating leverage side. Right. I mean in terms of terms of cost to AUM ratio. If I look at this number, every year for the last three years it’s been coming down but it’s probably inched up a bit in FY26. And that’s kind of, you know, getting reflected in higher employee payouts. So how should one think about it and how will this trend up? I mean, how will this trend going forward?
M Anandan
If you look at the overall AEM to cost to A which is around 2.7. Last time it was 2.6. See, our guidance has always been to maintain between 2.6 to 2.8%. Of course the reason why this year there is a slight increase in the cost is first of all, the disbursement was an all time high in this quarter. So there was more employees, branches, employee payouts and that kind of a thing. And new branches were also open, 39 branches. So to that extent there was an absorption in the cost. The third one is we have also increased the IT spend in terms of the security and also the way we do business.
The Ziva, which we launched in April 24th has been evolving and it has settled well. But every time when a new thing like account aggregator or when we are talking to Unified Lending Interface introduced by rbi, we are able to be able to see the digitization of land records in some of the states. So those are some of the things which we are spending. That is actually an investment for the future though. It is getting absorbed as a cost now. But it is going to bring in lots of process improvements in the coming years.
Mayank Mistry
Got it. And just one more I think on the credit cost side. What is the guidance that you have shared?
M Anandan
Currently it is around 0.5%. We want to have a 0.5 plus or minus 10%. 0.1%.
Mayank Mistry
Got it. Thank you very much and all the best.
M Anandan
Thank
Operator
You. Next question is from the line of Prithviraj Patil from Investec. Please go ahead.
Unidentified Participant
Yeah. Hi. Thanks for the opportunity. So I just wanted some clarity on the AUM mix. So if I look at our spreads, they’ve increased 10 basis quarter on quarter. So I just want to know have we like there’s a uptick in the self employed segment and the lab segment. So I just want to know is that contributing to the reason spread or is there a benefit on the cost side?
M Anandan
It is basically because of the cost of funds has come down from 8.3 to 8.1%. So that’s the benefit that has flown into the whole thing.
Unidentified Participant
Okay. Okay. It’s not because of the AUM mix, right?
M Anandan
Not because of aum.
Unidentified Participant
Okay, thank you.
Operator
Thank you. Next question is from the line of Sonal from Asian Market Securities. Please go ahead.
Unidentified Participant
Thank you for taking my question. I wrote that Issues with nbsp and that is where the credit cost has gone up. Now when I compare your consolidated, you know, L provisions and standalone L provisions so I see that, you know, Is, is it better now?
M Anandan
Just continue, we’ll see how, how it progresses.
Unidentified Participant
Sure. So when I look at your standalone and consolidated, you know, provisions. So at least for the quarter that I’m seeing that on a consolidated basis, you know, the credit courses somewhere 20 to 15 crores and on standalone for 20 crores. And even if I look at the trend for the full year, you know, it seems that confirm. I mean the credit cost is higher than the housing portfolio as compared to nbsp portfolio. If you could just, you know, I mean, tell exactly where, where is it that I’m missing?
Because you know, in your earlier comments you said that, you know, the issue was more on the MVP side.
M Anandan
I’m sorry, you contact me personally, I’ll tell you because I’m not able to hear you properly. Yeah,
Operator
Thank you. Next question is from the line of Sripal Doshi from Equivorous. Please go ahead.
Unidentified Participant
Hi sir. Thank you for giving me the opportunity and congrats on a good quarter. My question was on repayment rate and the BT out. So what is that for us in terms of this quarter versus last quarter and what strategy do we have in order to, let’s say retain a customer? Especially when the rates are so much different versus our peers because our peers have seen this rate moving up and down. There has been volatility there. But for us it’s been much more stickier at 15, 16% sort of a number on the repayment rate.
On the repayment rate side,
M Anandan
First of all, if you look at the, look at the preclosures, it is around 7 to 8% of the total variant. 6, 7%. Okay. Of that 7%, almost 65% to 70% of our customers when they come and close the loan, it is out of their own funds. So the balance, only 2% gets transferred to the other companies. So this is, we have been maintaining this, we have been observing for the last 10 years. So this has not changed at all. So basically it is not the interstate which is playing a part. It is basically the type of customers who are we are serving when they have some surplus funds.
The first thing we do is to settle the loan rather than keeping it alive. So definitely the balance transfer is around 2 to 2.5% and that’s still continuing. So as of now that’s not being looked at very as a track. Actually we don’t see any significant challenge in the BP to other financial institutions. That is only about one third of our total. Bit closer 2/3 really. Money coming from our customers themselves out of their savings and their closing. They are closing out of their money. The actual loan transfer from us to the other financial institutions, it is only around 2 and a half percent which has been there, you know, for quite some time, almost 8, 10 years.
So that way our BP to the other financial institution is not, you know, if something is normal and nothing abnormal, we are not observing any abnormal trend in that.
Unidentified Participant
Got it. So just to follow up there, like while at book level you are indicating 2 to 2.5% but what if you could give some color, especially specifically for H product, would it be the similar or it would be, let’s say closer to 4 or 5% sort of a btout number with respect to other players acquiring our customers.
M Anandan
No, actually we have seen this analysis across the product, it’s the same. We are not seeing that kind of a difference.
Unidentified Participant
Got it, Got it. Thank you. Thank you so much for answering my question.
Operator
Thank you. Next question is from Melena Fragav. From Amrit Capsule, please go ahead.
P Balaji
Hi, good morning and thanks for the opportunity. Am I audible?
M Anandan
Yes, brother.
P Balaji
Okay, I just have one question and on your assignment income, maybe the CFO can answer this better. See, when I look at your assignment gains as percentage of the off balance sheet loans or assigned loans, that’s 28% for this quarter and about 42% for the full year. And when I compare this to peers, the number is more like 8 to 10%. And I think, you know, when the back book builds up or you know, when you increase the, when you scale up this assignment book, the numbers which are 28% for the quarter and 42% for the year should normalize downward for you.
So I just wanted to get some sense that for FY27, 28 or going ahead, if you can give us some guidance as to how these assignment margins will look because right now they are contributing a lot to your profit and as your margin normalizes downward, that’s a risk to your ROE guidance or you know, generally it would not contribute as much to the ROE as it is contributing today. So yeah, I just wanted to get some sense there.
M Anandan
If you look at our va that is being done. We are doing it for the non housing loan book, largely non housing loan book where the yields are around 17, 17.5%. So but we are going to do a DA deal at say 8 or 8.1% the spread is so high and that is what is getting recognized as the apparent income. So this is what will, this is what it will continue. But having said that, we have booked, I mean last, last year there was not much da. This year there is a delay and next year it will be the same that the same momentum will continue.
So there will not be much impact because of this on the ROE or roa. To clarify, the range of upfront income will be in the. In between 25 to 28% what you
Rajiv Mehta
Have actually calculated. So because of our larger tenure and because of the yield, yield and spread, the upfront income will be in that range around 25 to 27, 28%. Yes,
P Balaji
But you know, the way that I understand this is that as your. You largely upfront the future income, right? You discount it to the present value and then you recognize it on the pnl. So next time when you do the direct assignment, the income from the back book will not be available. It will only come on the newly assigned loans. But in the denominator in the base, you will still have the back book. Right. So ideally the, the margin should come down. Should, shouldn’t it play out that way? I’m just trying to understand.
M Anandan
No. So we are this 25 to 28% what we are saying on the incremental DA, what we are doing. So that guided percentage of 25 to 28.
P Balaji
Correct. So you’re saying 25 to 28 is on the incremental DA that you’re doing. But going forward, as your outstanding book builds up, this margin should come down. I. Is that the correct way to think about this?
M Anandan
So margins will not come down Anyway, Rather, if, if this is specific question, I’ll come back to you and we can talk. I’ll talk to you now. I’ll call you after the call. Maybe we can understand the numbers and then we’ll, we’ll work it out. Okay,
Unidentified Participant
Sure. Sure. That was also my. Yeah.
Operator
Thank you. Next question is from the line of question Parik from Morgan Stanley, please go ahead.
Rajiv Mehta
Am I audible now? Thank you for taking my questions. I just had one question. In our opening remarks we mentioned that should be looking for better quality customers and we have optimized rates as well for these customers. We see some impact on the loan spreads in the next turn. If you could help us get a more holistic picture. I mean in the sense that you explained how you see the impact on the yields, how should this benefit us on the productivity side as well as on the credit cost side at the same time, And Netflix, what is the impact that you see of moving this better to this better quality customer on our overall profitability as well as if you could give us a small picture of essentially this.
I mean what is the difference between your current customer and this, this new customer that you’re chasing? I mean are they very different kind of cohort or it’s the same cohort and we should expect similar behavior.
M Anandan
I’ll try to answer whatever I was able to get from your question. Otherwise I can talk to you separately. What first thing is if you look at the. If the last year we have taken this call to stay away from less than 7 lakhs and then less than 7 lakhs and then Less than 7 lakhs and that has actually contributed to the actually contributed to the better quality in terms of collection efficiencies and everything. So now if you look at the disbursements that has been done at a higher ticket price, the collection efficiencies are very high and the bounce rates are really low.
And we are able to that extent the collection team’s effort, all the sales team effort of going to the fields and collections is minimized so that those are all the benefits that are coming because of this higher ticket price disbursement. And going forward that’s what will be concentrated upon.
Rajiv Mehta
Understood that was helpful. And if you could just help us understand, I mean from a customer profile perspective between our current customer and this new higher ticket customer. I mean how much of a step up is it?
M Anandan
The profiles are the same. It’s basically the house funded will be slightly higher cost and because of this and of course we have gone into this higher ticket size because of inflation also. Right. So it is basically the profiles of the customers are the same, the profile wise. Also the credit bureau data account aggregate data will be slightly better for the higher ticket customers than the customers with a loan profile of less than 7 lakhs. Because we would want to be very clearly away from the micro finance type of customers.
So you know the average size of the micro finance is between 3 to 3.5 lakhs. But at least want to be at least two weeks away from it. And which means that one is really looking for a better background customer, better financial background customers and better income earning profile customers. And which is evidence particularly credit data now also getting strengthened account aggregator data is available and also this recently introduced opens up lot of data kind of thing. We are using this data to improve our underwriting standards and to that look for better customers without any not increasing Much risk because the customer is going to be from an average 9 lakhs to the average 10 lakhs.
While percentage of 10% in improvement in 8 years. But actually in terms of the, you know, 1 lakh more loan, it doesn’t really change the inherent risk of the customer. So in other words we would really progressively. In fact it is not really, you know, it’s really to cover the inflation cost of the construction itself will be needing it. So that way obviously there will be change, there will be slight improvement in the profile of the customers also. Understood, thank you.
Operator
Thank you. Next question is from the line of Pawan Kamal from Edelweiss. Please go ahead.
Unidentified Participant
Hi sir, thank you for the opportunity and congratulations on really good set of results. Am I audible?
M Anandan
Yeah,
Unidentified Participant
Yeah. So two questions. One question is regarding Tamil Nadu. You mentioned Tamil Nadu is seeing very high competition and competitor support. Is this because of very high penetration in terms of affordable housing finance or lap and the field staff finding it tough to meet the targets because you know there are not enough customers who are looking for these and that is leading to higher attrition. The same thing is visible even in the quarter. On quarter AEM growth in Tamil Nadu. The Tamil Nadu, Karnataka numbers are slightly lower than that of AP and Telangana.
When I compare QR Creek growth in Q4FY26 that are same with Q4FY25 numbers. That’s one part of the Tamil Nadu equation. Second part is like, you know, the temperatures are much higher this year. Similarly elections are also gone through. So do you see higher credit cost impact in Tamil Nadu particularly for this, this particular quarter q1 also are there any local issues in Tamil Nadu? That’s one question sir. Second question is.
M Anandan
Second question first actually elections were there. Of course the temperatures are also rising but we’re not seeing impact because of that. The credit quality, the election data better in Tamil Nadu. So that is what is the situation as regards the growth is concerned. I think this 14% is a decent growth in terminal considering the base. And also we have been successful, of course the competition is there and we have been successful in retaining good people who are actually contributing to the company.
So to that extent we are successful and that is why this growth is coming in. While the competition intensity is much higher and with people poaching with other companies, poaching banks from us, we are also sposing up our retention schemes, insurance coverage schemes and etc. So that people are more aligned to access and then they are able to contribute towards the growth of the company. So as of now we are not seeing that kind of a big problem. But the competition is intense also new branches added in companies.
We are adding new branches wondering states like Telangana and Andra and newer markets like Maharashtra, Orissa. But the branch, new branch addition in Tamil Nadu that way is not much. Whatever that growth is coming is largely out of the existing branches only.
Unidentified Participant
Yes. So is that because like penetration being very high. Like Tamil Nadu is much more advanced state compared to AP or Telangana either in terms of income or hdi. Whichever parameter that you take, take. So has it reached a certain level of you know, of own housing and then you know new customers are hard to come
M Anandan
The market still along with both. See there is overall terms the demand is not the issue. It’s only the, you know, because Aptos has become known to be, you know, leader in the affordable housing space generally in South India and more so much more in Tamil Nadu. So any new competitor from west or north wanting to open a branch first they would want to look at, you know, our staff because our name and reputation. So that you know does create an issue on a very short term basis. But that being addressed at the end of the.
And as Balaji said, we are progressively getting back. We want to increase this 14%. What you said growth rate also to further develop going forward.
Unidentified Participant
Got it. So second question like you have guided for 22 to 24% AUM growth rate. So that’s approximately 16,000 crore. Assuming the same runoff rate which is principal repayment plus BT out at same 16% of starting AUM you need to do about like 5000 to 5100 crores of disbursements in FY27 at like an average of 370 branches. Like 340 to 400 that you go average of 370 branches. That comes to monthly disbursement rate of 1.15. So that’s about 10% growth. But if I look at the last three years it’s been same at 1.06 or 1.05 crores per month disbursement per branch.
Even if I look at the Q4 number, it’s like 1.23 crores per month. Over 1.19 crores last year, same quarter. So you said that the ticket sizes will increase by 1 lakh 10%. Is that the main growth, the ticket size growth. But the customer addition is going to remain same as what we have seen so far? Yeah, that’s the question.
M Anandan
There will be customer growth as been given in the presentation. Also there is year on year customer growth. And you know the growth will come as has been explained. Growth will come out of new stage out of the existing new branches in the existing states out of channel comprising of the customer app, eco app and you know digital app channels and which is augmented further by the. So it is just not you know and we better looking at what is the cost in terms of disbursement per branch of the past data.
But there are a lot of actions being initiated in the current year mostly in the last two quarters which is reflected in the fourth quarter in terms of substantial growth in disbursement. So with several actions including the branches new states branches, ATS in a new channel and optimizing certain rates. So several actions are being taken. It’s not just one. And they are tracked. They are tracked. We have a strong MIS to track what is the growth coming out of each segment. And we believe that is the basis on which we are indicating the kind of growth that we are seeing.
Unidentified Participant
Okay so just to ask this in a different way now that the PMAY2 is also kicking in for the BT rates will go down. So how confident are you that you will deliver this 22 to 24% growth that you have made it for PMA
M Anandan
Is for the urban kind of customers still they are. I don’t think this PMAY has come into the rural scenario. So for our kind of customer the PMA coverage will be very minimal. So this is not going to impact much for us if PMAY rural comes. We need to look at the amount of subsidy that is coming into that because PMAI1 rural subsidy was very very less. So we need to look at that at that point in time when it is getting launched. So as of now PMAUI will not have any impact for practice.
Unidentified Participant
Okay. But the confidence on the 22 to 24% growth rate is very high.
M Anandan
I think we have worked out various strategies to get to this 5000 crores and that is why we are giving this guidance. So hopefully we will be able to maintain that.
Unidentified Participant
Thank you so much sir. That’s very comprehensive and wish you all the best.
Operator
Thank you ladies and gentlemen. We will take that as the last question for today. I would now like to hand the call over to the management for closing comments.
M Anandan
Yeah. Thank you. Thank you everyone for attending the conference call. I would like to pay my sincere gratitude to all the analysts and industrial friends who have taken time time out to listen to us today. Please feel free to contact us if you if you have any further queries. Thank.
Operator
Thank you very much. Thank you all for being a part of the conference call. If you need any further information or clarification, Please email investor relationsptisindia.com Ladies and gentlemen, this concludes your conference for today. Thank you for using Kuroscol conferencing Services. You may now disconnect your line. Thank you, and have a pleasant day.
M Anandan
Thank you.