Affordable Housing Finance Sector Faces Q2 Stress: Elara Securities Flags Rising Delinquencies and Higher Credit Costs

Overview

The affordable housing finance sector experienced a challenging Q2FY26 with early-bucket delinquencies rising and bounce rates reaching 20-22%. Elara Securities forecasts elevated credit costs of 35-50 basis points through FY28, significantly above historical levels. Slower disbursement trends are also noted due to uneven borrower income and stricter screening. The report highlights stress in specific companies like Aadhar Housing Finance and India Shelter Finance, while others like Aptus Value Housing Finance show relative resilience but are not immune.