The Board of Directors of Aadhar Housing Finance Limited
('your Company' or 'the Company' or 'Aadhar Housing'
or 'AHFL') are pleased to present the 36^th (Thirty- Sixth)
Annual Report and the Audited Financial Statements
(Standalone and Consolidated) of your Company for the
financial year ended March 31, 2026 ('financial year
under review').

1. Company Overview

Your Company is a Housing Finance Company
registered with National Housing Bank ('NHB') and
regulated & controlled by Reserve Bank of India (' RBI')
and supervised by NHB. Aadhar Housing is one of
the largest low-income housing finance companies
in India servicing the home financing needs of the
low income sections of the society. Aadhar Housing
endeavours to empower underserved millions to own
their first homes. There has been no change in the
nature of business and operations of the Company
during the financial year under review.

Your Company is focused on low-income segment
(ticket size less than 115 lakhs) with an Assets Under
Management(AUM) of 130,571 crores and presence
across 22 states and union territories with a branch
network of over 626 branches as at the end of the
current financial Year. With diversified exposure
across locations and no single state contributing to
more than 15% of AUM, there is low concentration risk
due to wide geographical presence. With the vision of
'Home ownership for aspirational India', the Company
facilitates financial inclusion by enabling wider
access to housing finance, ethically and responsibly.
Aadhar Housing's loan disbursement process is
simple, transparent and speedy. With the mission
of 'Delivering transparent and agile tech-enabled
financial solutions to make quality home ownership
possible', the Company provides 100% secured retail
advances at moderate Loan-to-value ('LTV') ratios
of 60% using AI powered processes across various
functions. Majority of Company's mortgage portfolio
satisfies the Priority Sector Lending criteria prescribed
by RBI/NHB and 55% of the Company's AUM comes
from low-risk salaried customers.

The Gross Non-Performing Assets ('NPA') on AUM of
the Company stood at 1.08% for the year ended March
31, 2026. Although Company maintains high asset
quality, the Provision Coverage Ratio on NPA Assets
is maintained at 35.68% as at the end of the current
financial year. The Company has strong liquidity
position with high liquid assets/cash & bank balances
of 11,425 crores as at March 31, 2026 in addition to
unutilized Banks' sanction lines.

2. Financial Performance of AHFL
(Standalone):

3. Major Developments during the year

During the financial year under review, a change in
shareholding and control of the Company occurred,
triggering the Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011 ('SEBI SAST Regulations'). BCP
Asia II Holdco VII Pte. Ltd. ('Acquirer') acquired
28,20,52,121 equity shares at 1425 per Equity share,
representing 64.14% of the Expanded Voting Share
Capital, from the erstwhile promoter, BCP Topco VII
Pte. Ltd., pursuant to a Share Purchase Agreement
dated July 25, 2025. Consequent to this acquisition
('Blackstone Acquisition'), a mandatory open offer
was made to public shareholders, pursuant to which
7,36,706 equity shares were tendered and settled in
cash on February 18, 2026 for Offer Price of 1469.97
and applicable interest of 12.71 per Equity Share.

On February 25, 2026, pursuant to the terms of SPA,
BCP Asia II Holdco VII Pte. Ltd. acquired 28,20,52,121
equity shares from BCP Topco VII Pte. Ltd.

On February 26, 2026, AXDI LDII SPV 1 LTD, who is a
public shareholder, acquired remaining 4,41,39,236
equity shares held by BCP Topco VII Pte. Ltd. at 1425
per equity share pursuant to the share purchase
agreement dated July 29, 2025 ('AXDI Acquisition').

Pursuant to the above acquisitions, the erstwhile
promoter and promoter group ceased to be promoters
and ceased to have control over the Company, and
BCP Asia II Holdco VII Pte. Ltd was classified as
the Promoter of the Company with effect from
February 26, 2026. The erstwhile promoter
was reclassified as a public shareholder
under Regulation 31A of the Securities and
Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015
('SEBI LODR Regulations').

As on March 31, 2026, BCP Asia II Holdco VII Pte.
Ltd. held 64.90% of the equity share capital of
the Company.

4. Initiatives towards funding of the
Green Housing Projects

Your Company in collaboration with the International
Finance Corporation ('IFC'), a member of the World
Bank Organization, is actively working towards
developing a Green Affordable Housing value
proposition within the self-construction segment.
This initiative aims to establish a structured roadmap
for scaling the proposition across the market
through awareness, product, marketing, certification
and subsidy.

A green home is designed to optimize resource
efficiency by reducing electricity, water consumption,
and overall operational costs. Such homes can help
achieve savings of at least 20% on utility expenses,
while also ensuring a healthier indoor environment
and minimizing environmental impact.

Key Highlights

• A total of 500 homes have been certified under the
green building initiative in FY 2025-2026.

• Rajasthan & Karnataka lead significantly with 350
certified homes, showcasing strong adoption of
green building practices in the regions.

This initiative continues to support our ESG
(Environmental, Social, Governance) goals and
enhances the long-term sustainability of our
lending portfolio.

5. Management Discussion and
Analysis Report

In accordance with the applicable provisions of the
RBI Master Directions and SEBI LODR Regulations, a
detailed analysis of the Company's performance is
discussed in the Management Discussion and Analysis
Report, which forms part of this Annual Report.

6. Changes in the Directors and Key
Managerial Personnel

Board of Directors (‘the Board’)

• The Members at the Annual General Meeting of the
Company held on July 29, 2025, considered and
approved the appointment of Mr. Raj Vikash Verma
(DIN: 03546341) as an Independent Director,
for a period of five years w.e.f. May 06, 2025
to May 5, 2030.

• The term of Mr. O. P. Bhatt, Independent Director
and Non- Executive Chairman of the Company
(DIN: 00548091) expired w.e.f close of business

hours on September 12, 2025. The Board places on
record its appreciation for the invaluable guidance
received from Mr. Bhatt during his tenure as
Independent Director and Non- Executive Chairman
of the Company.

• Mr. Raj Vikash Verma (DIN: 03546341)
Independent Director, was appointed as the
Non-Executive Chairperson of the Company
w.e.f. September 13, 2025.

• Pursuant to Section 152 of the Companies Act,
2013 ('Act'), Mr. Mukesh Mehta (DIN: 08319159),
Non-Executive (Nominee) Director retires from the
Board by rotation and being eligible, offers himself
for re-appointment at the ensuing 36^th Annual
General Meeting of the Company.

• The Nomination and Remuneration Committee
of the Company and the Board of Directors have
recommended the re-appointment of Mr. Mukesh
Mehta. A detailed profile of the Director seeking
re-appointment is provided in the Notice of the
36^th Annual General Meeting of the Company.

Key Managerial Personnel

During the financial year under review, there were

no changes in the Key Managerial Personnel of

the Company.

7. Share Capital Structure:

Your Company's capital structure as at

March 31, 2026 is given in the below table:

Changes in Capital Structure

and shareholding position:

During the financial year under review, the Company
underwent a significant change in its capital structure
in terms of ownership and voting rights, consequent
to certain acquisitions undertaken in compliance
with the SEBI SAST Regulations. While there was no
material change in the authorized, issued, subscribed
or paid-up equity share capital of the Company, the
aforesaid transactions resulted in a material change
in the shareholding pattern, promoter holding and
control of the Company.

Thereby the erstwhile promoter and promoter group
of the Company have ceased to be in control of the
Company and stand re-classified from 'Promoter/
Promoter Group' category to 'public' category with
effect from February 26, 2026.

Pursuant to open offer by the acquirer total of
7,36,706 shares were tendered by the shareholders
constituting 0.65% of open offer issue and 0.17%
of total voting share capital of the Company.
The Settlement for open offer was completed on
February 18, 2026 and all subscribing shareholders
were duly paid against the shares tendered by them
in open offer. Accordingly, as on February 26, 2026,
BCP Asia II Holdco VII Pte Ltd. held 65.07% Equity
Shares of the Company.

The eligible employees exercised their stock options
resulting in allotment of 43,19,251 equity shares of
the Company during the year. As a result, the paid-
up Equity Share capital of the Company stands
increased from 14,31,38,44,590 as on March 31, 2025
to 14,35,70,37,100 as on March 31, 2026.

As a result of the above transactions, the promoter
shareholding reduced from 75.61% as on March 31,
2025 to 64.90% as on March 31, 2026.

During the financial year ended March 31, 2026,
the Members of the Company approved the Aadhar
Housing Finance Limited-Employee Stock Option
Plan 2025 ('ESOP Plan 2025') on November 16,
2025 through special resolutions passed by way of
postal ballot.

Strong Parentage of the BCP Asia II Holdco
VII Pte. Ltd. (A Blackstone Group entity)

The Company enjoys strong parentage of our
Promoter Company and benefits from the resources,
relationships and expertise of Blackstone, one of the
world's leading investment firms. Blackstone's asset
management businesses include investment vehicles
focused on real estate, private equity, public debt and
equity, growth equity, opportunistic, non-investment
grade credit, real assets and secondary funds, all
on a global basis. Through its different businesses,
Blackstone had total assets under management of
over USD 1.3 trillion as of March 31, 2026. Currently,
the Board of Directors of the Company has 3 Nominee
directors from the Promoter.

The shareholding pattern of the Company at the end
of the financial year is as mentioned below :-

List of Shareholders & percentage of holding
as on March 31, 2026

*Includes 26,100 bonus shares kept in abeyance in the
Unclaimed Suspense Account of the Company pertaining to
shareholders who are holding shares in physical form and
have not yet provided their demat account details.

The Company uploads the shareholding pattern as at
the end of each quarter on the websites of the Stock
Exchanges as required under regulation 31 of the SEBI
LODR Regulations.

8. Financial Performance

8.1 Financial summary and highlights of
the Company:

Your Company takes pleasure in presenting the
standalone and consolidated reports on the
operational and business performance, along with
the audited financial statements for the financial year
ended March 31, 2026.

Financial summary and highlights of the Company are given as following :

Note: Consolidated financials include financials of wholly owned subsidiary Aadhar Sales and Services Private Limited.

8.2 GNPA and ECL Provision

(including additional provision):

Your Company provides for NPAs using the Expected
Credit Loss Model prescribed under Ind AS 109. The
provision under the Expected Credit Loss Model is
higher than the Income Recognition and Prudential
Norms by 1116.32 crores. The key highlights of the
provisioning are given below -

a) GNPA:

b) Your Company's gross loan assets are 125,129.86
crores as at March 31, 2026 (120,727.13 crores
as at March 31, 2025). Your Company is carrying
an impairment allowance of 1290.27 crores
as at March 31, 2026 (1243.03 crores as at
March 31, 2025). The ECL provision coverage
ratio on Stage 3 (NPA Assets) is 35.68% as at
March 31, 2026 (34.46% as at March 31, 2025).

c) Based on the current information available, the
Company has estimated various scenario analysis
and applied management overlays based on the
policy approved by the Board, while arriving at
the provision for impairment of financial assets
which the Management believes is adequate.
As at March 31, 2026, your Company is carrying a
management overlay provision of 157.34 crores.

8.3 Financial Ratios:

The key financial ratios of the Company are
given below-

9. Resource Mobilisation:

Your Company's Resource Planning Policy has been
approved by the Board. The shareholders at the
35^th Annual General Meeting held on July 29, 2025
passed a special resolution under Sections 42, 71,
180(1)(c) read with 180(1)(a) of the Act and rules
made thereunder approving the borrowing limit and
authorizing the Board of Directors / Management
Committee to raise or borrow any sum or sums of
money (including non-fund based facilities) by way
of loan(s) in rupee currency and/or foreign currency
from various borrowing sources up to an amount of
130,000 crores (Rupees thirty thousand crores) or up
to 12 times of Net Owned Fund (NOF) of the Company
whichever is lower, as per provisions of Reserve Bank
of India (Housing Finance Company) Directions,
2025 (' RBI Master Directions') and other applicable
Directions/ Notification/ Circulars/Guidelines issued
by RBI/ NHB.

As at March 31, 2026, your Company's borrowings
primarily comprised of 51% from banks, 22% from
National Housing Bank, 19% from Non-Convertible
Debentures ('NCD'), 5% from External Commercial
Borrowings ('ECB'), 3% from Domestic DFIs. There has
been no deviation in the utilisation of issue proceeds
of secured redeemable NCDs from the objects as
stated in the private placement memorandum.

Over the years, your Company has been taking
steps to change it's funding mix by diversifying into
capital market instruments, ECBs and other avenues
depending upon the opportunities available in the
market. It will continue with this strategy to diversify
and reduce the reliance on Bank borrowings.

The Company's strategy to enter into partnerships
with financial institutions that are keen on good-
quality assets for assignment /co-lending of long-
tenor receivables, has helped in maintaining a
balanced ALM position.

(b) Loans from Banks:

As at March 31, 2026, your Company had relationships
with 24 banks. Your Company continued to leverage
on its long term relationships with these banks
and raised additional term loans to the extent of
13,765 crores during the year at competitive rates.
Total outstanding borrowing from banks as at
March 31, 2026 aggregated to 19,542 crores.

(c) Refinance from National Housing
Bank (NHB):

The NHB Refinance department has sanctioned
Refinance facility to the Company under various
schemes for a term ranging from 7 years to 10 years
repayment tenure.

During the year, your Company has availed
refinance facility of 11,304 crores from NHB. As at

March 31, 2026 the outstanding balance on NHB
Refinance amounts to 14,090 crores.

(d) Loans from Domestic DFIs

During the FY 2025-2026, your Company has availed
term loans amounting to 1500 crores from domestic
DFIs to diversify the further funding mix which
remained outstanding as at March 31, 2026.

(e) Borrowings through External
Commercial Borrowing (ECB):

During the FY 2025-2026, your Company has availed
ECB of USD 50 million. Total outstanding ECBs as
at March 31, 2026 was USD 100 million equivalent
to 1944 crores. Your Company has fully hedged the
currency and interest rate risk on these ECBs for the
entire tenure.

10. Borrowings through other Debt
Instruments and Resource
Mobilisation:-

(i) Secured Redeemable Non-Convertible
Debentures (NCDs)

As at March 31, 2026, your Company's outstanding
Secured NCDs issued under Initial Public Offer stood
at 2,12,353 aggregating to 121.23 crores at face
value, held by 1,171 NCD holders. Your Company has
duly paid the principal/interest amounts on due dates
for the NCDs public issue and has timely intimated
BSE Ltd. and Debenture Trustees.

During the financial year under review, your Company
raised 1400 crores by way of issue of 40,000 Senior,
Secured, Rated, Redeemable, Non-Convertible
Debentures on private placement basis, as per the
applicable provisions of relevant circulars issued by
Securities and Exchange Board of India. The Company
has completed the allotment process within the
prescribed time-limit.

As at March 31, 2026, your Company's outstanding
secured NCDs under private placement were
13,405.45 crores at face value. Further, your Company
has made timely payment of interest and principal
amount on the respective due dates for NCDs issued
by the Company and there has been no default
in payment.

The SEBI vide its Master circular no. SEBI/HO/DDHS/
DDHS -PoD/P/CIR/2025/0000000137 issued on
October 15, 2025 has mandated Large Corporates
('LCs') to raise a minimum 25% of their incremental
borrowings in a financial year through issuance of debt
securities which were to be met over a contiguous
block of three years. The necessary disclosures for
the listed NCDs as per above referred circular has
been disclosed to BSE Ltd.

(ii) Unsecured Subordinated
Non-Convertible Debentures:

As at March 31, 2026, your Company's outstanding
unsecured subordinated debts were 160 crores at
face value. The debt is subordinated to present and
future senior debt of your Company. Your Company
has duly paid the interest amount due on the aforesaid
NCDs on time and reported the same to BSE Ltd. and
the Debenture Trustees without any delay/default.

(iii) Commercial Paper:

During the financial year under review, the Company
has issued Commercial Paper of 1 500 crores, out of
which 1 300 crores was duly paid on the due date and
commercial papers of 1 200 crores were outstanding
as on March 31, 2026.

(iv) Direct Assignment of Mortgage Pool
Receivables:

Majority of the Company's loan book portfolio qualifies
under the Priority Sector Lending (PSL) mortgage loan
portfolio, as per the notification issued by RBI from
time to time. During the financial year under review,

the Company has assigned receivables of its mortgage
loan assets aggregating to 11,580 crores, being
investors' share. Total assigned pool outstanding as
at March 31, 2026 was 15,005.85 crores.

Further, during the year the Company has assigned
receivables of its mortgage loan assets under the
Co-lending arrangement aggregating to 1155 crores,
being investors' share. Total co-lent receivables
outstanding as at March 31, 2026 was 1 638.97 crores.

(v) Security Coverage for the Borrowings:

The security details of the aforesaid secured
borrowings made by the Company are mentioned at
Note No. 16 and 17 in the Notes to accounts forming
part of the audited financial statements for the year
ended March 31, 2026.

The Company has not provided any gold loans or does
not provide loans against the security of gold or other
precious metals or ornaments during the financial year
2025-26.

12. Asset Liability Management
Committee (‘ALCO’):

The Asset Liability Management Committee lays
down policies and quantitative prudential limits to
manage various types of risks associated with the
business model of the Company within the regulatory
framework. The Company has duly implemented the
RBI's Asset Liability Management ('ALM') Guidelines
applicable to Housing Finance Companies.

The Board of Directors of the Company has approved
the ALM policy and reviews the same from time to
time. The ALCO Committee ensures that the liquidity
and interest rate risk are within the regulatory limits.
As at March 31, 2026, your Company had a strong
asset liability position with positive gaps across all
the buckets.

13. Risk Management Framework
and Monitoring:

The sustainability and success of any financial
institution are closely linked to its ability to effectively
identify, assess and manage risks. Aadhar Housing
recognises risk management as a core element
of prudent business operations and has therefore
established an enterprise-wide risk management
framework. A robust risk management approach
enables informed decision-making within defined risk
appetite levels, supporting both risk mitigation and
value creation.

Risk management at Aadhar Housing encompasses
a well-defined culture, structured processes,
and governance mechanisms aimed at optimising
opportunities while managing potential adverse
impacts. The Company follows a proactive,
systematic and disciplined approach by continuously
designing and implementing a comprehensive risk
management programme.

The risk management framework is embedded across
all levels of the organisation and across functional
areas. Clear roles and responsibilities have been
delineated among the Board of Directors, Audit
Committee and Risk Management Committee. The
Chief Risk Officer (CRO) oversees enterprise risk
management and is responsible for the identification,
assessment, monitoring and reporting of key risks
to senior management, the Risk Management
Committee and the Board.

Aadhar Housing has established a Board-approved
Risk Appetite Framework that outlines the various
risks faced by the organisation and defines acceptable
risk thresholds. This framework fosters a clear
understanding of the organisation's risk tolerance and
guides strategic and operational decision-making. It is
periodically reviewed and updated to reflect changes

in the internal and external environment, ensuring
continued relevance and effectiveness in assessing
and managing emerging risks.

Aadhar Housing has put in place a comprehensive risk
management framework, supported by well-defined
policies and processes. This includes an overarching
Risk Management Policy, an Internal Capital Adequacy
Assessment Process (ICAAP) policy and a structured
Early Warning Signal (EWS) framework, all aligned with
applicable RBI guidelines. During the financial year
under review, the Risk Management Policy has been
reviewed by the Board of Directors at their meeting
held on July 25, 2025.

The framework is designed to proactively identify,
assess and monitor key risks that could impact the
Company's operations and financial strength. These
risks include credit risk, asset-liability management
risk, concentration risk, interest rate risk, reputational
risk, cybersecurity risk, fraud risk, business and
exposure risks, competitive pressures and regulatory
risks. Continuous oversight of these risk areas is
critical to maintain the Company's stability, solvency
and long-term resilience.

The Company places significant emphasis on early
and effective risk identification as a cornerstone of
its risk management framework. Risk mitigation is
supported by the following key elements:

• Robust Risk Governance Framework: Clearly
articulated roles and accountabilities across the
Board, its Committees and management to ensure
strong oversight, ownership, and governance of
risk matters.

• Structured Risk Identification and Evaluation: Risks
are systematically identified and assessed through
structured processes covering internal and external
factors, including emerging risks. This is supported
by tools such as scenario analysis, stress testing
and regular risk reviews.

• Ongoing Risk Monitoring and Reporting: Key
risk indicators and exposures are continuously
monitored, with periodic reporting to the Risk
Management Committee and the Board to facilitate
timely and well-informed decision-making.

• Risk Mitigation and Control Framework: The
Company has established appropriate risk limits,
delegation of authority frameworks, internal control
mechanisms and contingency plans aimed at
minimising potential adverse impacts.

• Alignment with Strategic Objectives: Risk
considerations are integrated into strategic
planning, business decision-making and
operational execution, ensuring alignment between
risk appetite and growth objectives.

During the financial year, the Risk Management
Committee periodically reviewed the key risks
impacting the Company's operations, conducted
root-cause analyses where necessary and
evaluated the effectiveness of mitigation measures
implemented to address such risks.

14. Internal Audit Control & Reporting:

The Company has established an independent
Internal Audit function led by Head - Internal Audit
and supported by team of qualified chartered
accountants, experienced internal auditors and
functional experts. The function operates under a
Risk-Based Internal Audit framework, which is aligned
with the company's risk management approach and
regulatory expectations applicable to NBFCs.

The Risk Based Internal Audit Policy and Risk Based
Internal Audit Plan are approved annually by Audit
Committee. All the significant findings of internal audit
and action taken status are discussed in the Audit
Committee of the Board. Head of Internal Audit also
meets the Members of the Audit Committee without
the presence of management on quarterly basis.

Periodic branch audits, continuous concurrent
audits and risk-based process audits, information
systems and information security audits are part of
internal audit annual plan. The internal audit function
provides independent assurance on adequacy and
effectiveness of internal controls, governance,
process and risk management framework across
the organization.

15. Directors and Officers (‘D&O’)
Insurance:

As per the provisions of the Act and in compliance with
Regulation 25(10) of the SEBI LODR Regulations, the
Company has taken a D&O Liability Insurance policy on
behalf of all Directors including Independent Directors
and officers of the Company for such quantum and for
such risks as determined by the Board.

16. Fixed Deposits (‘FD’) program:

Pursuant to the instructions issued by NHB as a
condition for approval of the change in control &
management of the Company, the Company has
stopped accepting any fresh or renewal of deposits
from public from May 2019. Your Company's FD
programme is rated, CARE AA (stable) by CARE
Ratings Ltd. As on March 31, 2026, your Company's
outstanding FDs including accrued interest (excluding
unclaimed matured deposit) are 10.46 crores. The
Company is regular in payment of interest and
maturity amount dues to depositors without any delay
or default. The Company has maintained SLR security
deposits with Government Bonds/Fixed Deposits for
amount more than the stipulated requirements by the

Regulators for repayment of these deposits as and
when required by the depositors.

As per Para 58 of the RBI (Non-Banking Financial
Companies - Acceptance of Public Deposits)
Directions, 2025 the details of Company's unclaimed
matured public deposit accounts of depositors,
after the date on which the deposit became due
for repayment and the total amount due under such
unclaimed/ unpaid accounts as on March 31, 2026 are
mentioned below :

a. Total 52 nos. of accounts of fixed deposits of the
Company which have not been claimed by the
depositors after the date on which the deposit
became due for repayment.

b. Total amount of 111,80,697 is due, under such
accounts remaining unclaimed or unpaid beyond
the date referred to in clause (a) as aforesaid.

For the unclaimed deposits as mentioned above, the
Company has taken the following actions:-

i) The Company continuously contacts the FD
holders through SMS/ call/ postal letters to
obtain the depositors' instructions so as to
ensure repayment of the unclaimed deposits.

ii) The Company also contacted the depositors or
nominee or sourcing agent through our local
branches, requesting them to complete the
formalities for receiving the maturity payments
of FDs.

17. Unclaimed/ Unpaid Dividend and
Interest:

During the financial year under review, your Company
transferred unclaimed Interim dividend of 194,844/-
for the financial year 2017-18 and interest of 179 on
matured debentures which remains unclaimed for
the financial year 2018-19 to the Investor Education
and Protection Fund ('IEPF'), established by the
Central Government on September 16, 2025 and on
January 21, 2026 respectively. During the financial
year under review, no shares were transferred by the
Company to IEPF. Your Company has duly complied
with all applicable provisions of Act and the Investor
Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016 ('IEPF Rules')
regarding Unclaimed/ Unpaid Dividend and Interest.

18. PMAY 2.0 Urban - Interest Subsidy
Scheme (ISS) :

The Ministry of Housing and Urban Affairs (MoHUA),
Government of India is implementing the Interest
Subsidy scheme 'ISS' under Pradhan Mantri Awas
Yojana - Urban 2.0 (PMAY-U 2.0) to support the
eligible beneficiaries by providing the interest subsidy
on Home Loans and to address the housing needs
of the economically Weaker Sections (EWS)/Low

Income Group (LIG)/and Middle Income Groups (MIG)
segments in Urban areas.

The ISS envisages the provision of interest subsidy
on home loan to enable EWS/LIG/MIG borrower/
beneficiary to buy or construct the house.

This PMAY scheme was implemented through
4 verticals:-

i) Beneficiary lead construction (BLC)

ii) Affordable Housing in partnership (AHP)

iii) Affordable Rental Housing (ARH)

iv) Interest Subsidy Scheme (ISS)

PMAY 2.0 claim and Disbursement
Status as on March 31, 2026

Aadhar Housing has also executed MOU for availing
benefits under various Schemes of PMAY 2.0 ISS with
National Housing Bank on November 5, 2024. The
Company has submitted the claim for subsidy to NHB
from time to time under the PMAY scheme.

(i) Total PMAY claim received in PMAY 2.0 ISS till
March 31, 2026 is for 12,466 loan accounts
(EWS/LIG - 10,996 Loan accounts & MIG - 1,470
Loan Accounts)

(ii) Till March 31, 2026, 140.50 crores subsidy has
been released to customers covered under PMAY
2.0 ISS (EWS/LIG customers - 135.49 crores &
MIG customers - 15.00 crores)

19. Reserve Bank of India (‘RBI’)/
National Housing Bank (‘NHB’)
Regulations/Directions:

The RBI has continuously endeavoured to optimise
its regulatory framework. The RBI/ NHB has issued
several Directions/ Regulations/ Guidelines/ Advisories
throughout the year and your Company is adhering to
the same during the year as per applicability. Your
Company is having a valid NHB License for carrying
on business of Housing Finance Company.

During the year RBI has consolidated the various
Directions as applicable to our Company. The RBI/
NHB Directions/ Regulations/ Guidelines/ Advisories
are placed before the Board of Directors at regular
intervals with Compliance update on the same. The
Company has implemented and formulated policies
and procedures as applicable.

While the RBI serves as the principal regulator for the
Company, supervisory oversight continues to rest
with the NHB. Various inspection observations of
NHB were satisfactorily complied and resolved and
reported to the Board.

During the year, Mr. Pratik Rajendra Jariwala was
appointed as the Chief Compliance Officer with effect
from 15^th August, 2025, following the retirement of
Mr. Sreekanth V. N., who stepped down from the
position on 14^th August, 2025. The appointment
was made in accordance with the requirements
specified under RBI Circular No. DOS.CO.PPG/
SEC.01/11.01.005/2022-23 dated 11^th April, 2022.The
Chief Compliance Officer also meets the Members
of the Audit Committee without the presence of
management on quarterly basis.

To further strengthen the Company's compliance
framework the Company has implemented compliance
management tool. This system facilitates timely
tracking, reporting, and escalation of compliance
requirements, thereby strengthening Company's
commitment towards regulatory governance.

There have been no delays in filing the necessary
disclosures, returns and necessary forms with respect
to Foreign Direct Investment for the financial year
under review. There were no fines/penalties levied
by the RBI during the year 2025-26. All the Directors
meet the fit and proper criteria stipulated under the
RBI Master Direction, as amended from time to time.

As per the Master Circular- Returns to be submitted by
Housing Finance Companies (HFCs), the Company has
duly complied and submitted all the required monthly/
quarterly/ half yearly/yearly NHB reports/ returns,
intimation of opening/ closing (shifting/relocation/
merger) of branches/offices within prescribed time¬
limit during the FY 2025-26.

The Company being a financial institution is also
registered for taking SARFAESI Action under
Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002
("SARFAESI Act") and the same has been notified
by NHB.

20.Capital Adequacy and Transfer to
Special Reserve

As per the Reserve Bank of India (Housing Finance
Companies) Directions, 2025, the Company is required
to maintain a minimum capital adequacy of 15% on a
standalone basis. The Capital Adequacy Ratio (CAR) of
your Company was at 42.49% as on March 31, 2026, as
compared to the regulatory requirement of 15%. The
following table sets out Company's Capital Adequacy
Ratios as at the end of last 3 financials years:

In addition, the National Housing Bank Act, 1987 also
requires that your Company transfers minimum 20%
of its annual profits to a Special Reserve fund, which
the Company has duly complied.

21. Principal Business Criteria for
HFCs

RBI vide its circular number RBI/DoR/2025-
26/365DoR.FIN.REC.284/03-10-119/2025-26 dated
November 28, 2025 defined the principal business
criteria for HFC's as follows:

a. It is an NBFC whose financial assets, in the
business of providing finance for housing,
constitute at least 60% of its total assets (netted
off by intangible assets).

b. Out of the total assets (netted off by intangible
assets), not less than 50% should be by way of
housing financing for individuals.

The Company has complied and is meeting the
aforesaid principal business criteria for HFC
as detailed below :.

22. Insurance Regulatory and

Development Authority of India
(IRDAI):

The Company is registered with IRDAI as
Corporate Agent - Composite, bearing registration
number CA0012 with validity till March 31, 2028.
The Company has executed Corporate Agency
agreement with the insurers : Pramerica Life
Insurance Limited, Go Digit General Insurance
Limited and Bajaj General Insurance Limited.

During the FY 2025-2026, the Company has
complied with Insurance Regulatory and Development
Authority of India (Registration of Corporate Agents)
Regulations, 2015 and all other relevant regulations

/ circulars and guidelines issued by IRDAI. Also the
Company has, duly filed/ submitted various returns,
reports and intimations within the prescribed time¬
limit. No penalties/fine were levied by the IRDAI during
the FY 2025-2026.

23. Trade Marks Registration for the
Company:

Aadhar Housing owns a combination of trademarks
to establish and protect our brands, logos and
marketing designs. The Company has 14 trademarks
registered with the Registrar of Trademarks under the
Trade Marks Act, 1999.

24. Fair Practice Code, KYC norms,

Anti Money Laundering standards
and Policy for prevention,
prohibition and Redressal of Sexual
Harassment:

The Fair Practice Code, KYC Norms and Anti Money
Laundering (AML) Standards as per the guidelines
issued by the NHB/RBI from time to time are invariably
adhered to and duly complied by the Company. The
Company has put in place Board approved robust Know
Your Customer (KYC) & Anti Money Laundering (AML)
Measures Policy ('KYC & AML Policy') for compliance
by the branches and the same is reviewed by the
Board periodically. The Internal Auditors conducted
the audits of the branches to ensure adherence of
these AML standards during the financial year under
review. The quarterly reporting under KYC & AML
policy has been submitted to NHB within the due
dates for intimation.

The Company has zero tolerance for sexual
harassment at workplace and has adopted a Policy
on prevention, prohibition and redressal of sexual
harassment at workplace in line with the provisions
of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and
the Rules thereunder ('the POSH Act') for prevention,
prohibition and redressal of complaints of sexual
harassment at workplace. The Company has also
constituted an Internal Committee (IC) in compliance
with Section 4 of the POSH Act.

During the financial year under review, the Company
has complied with provisions relating to the
constitution of Internal Complaints Committee under
the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.

Details of complaints under POSH Act are as under:

a) Number of complaints at the beginning of the
financial year: 01

b) Number of complaints filed during the financial
year: 03

c) Number of complaints disposed of during the
financial year: 04

d) Number of complaints pending as at end of the
financial year: Nil

25. Internal Financial Control
Measures/System:

The Company's internal control system is designed
to ensure operational efficiency, protection and
conservation of resources, accuracy and promptness
in financial reporting and compliance with laws and
regulations. The internal control system is supported
by an Internal Audit function which is responsible
for independently evaluating the adequacy and
effectiveness of all internal controls, risk management,
governance, processes and compliance mechanisms
across the organization.

While conducting audit, the Internal Audit function
also ascertains the extent of adherence to regulatory
guidelines, legal requirements, internal policies
and standard operating procedures and provides
timely feedback to the management for corrective
and preventive action. Internal Audit reports are
discussed with the management and all significant
internal audit findings and action taken thereon are
periodically placed before the Audit Committee for
review and guidance. Audit Committee evaluates the
performance of the internal audit function and reviews
the adequacy and effectiveness of the internal control
systems, risk management processes and compliance
with regulatory guidelines.

Concurrent Audit Portal:

Aadhar Housing has launched the Web-based
Concurrent Audit Portal (AHFL Audit Application),
developed with support from the in-house IT team.
This platform enables auditors to raise observations
and monitor actionable items seamlessly within the
system building transparency and accountability.

The portal serves as a centralized repository for
capturing and preserving audit observations.
Additionally, it facilitates end-to-end tracking of
observations and helps capture auditee responses
along with corrective actions and closure status,
replacing the manual tracking of the same in excels
and emails.

26. Auditors

Statutory Auditors, their Report and
Notes to Financial Statements:

The Joint Statutory Auditor's Report does not contain
any qualifications, reservations, adverse remarks
or disclaimer. The Joint Statutory Auditors have not
reported any incident of fraud to the Audit Committee
or the Board of Directors under Section 143(12) of the
Act during the financial year under review.

M/s S. R. Batliboi & Associates LLP, Chartered
Accountants continues to be the joint statutory auditor
of the Company. The tenure of M/s. Kirtane & Pandit
LLP, Chartered Accountants as joint statutory auditors
is completing at the ensuing Annual General Meeting.

The Audit Committee and the Board at their meetings
held on March 26, 2026 and May 5, 2026 respectively
have recommended the appointment of M/s. N.M. Raiji
& Co, (Firm Registration No 108296W), Chartered
Accountants as Joint Statutory Auditors to hold
office for a period of three consecutive years i.e.
from FY 2026-2027 till the conclusion of Annual
General Meeting to be held for FY 2028-2029 for the
approval of the Members. Details of their appointment
forms part of the Notice of the 36^th Annual General
Meeting. M/s. N.M. Raiji & Co, holds a valid peer
review certificate.

Secretarial Audit and Secretarial
Compliance Report :

At the 35^th Annual General Meeting held on
July 29, 2025, M/s Aashish K. Bhatt & Associates,
Company Secretaries, Mumbai, (Membership Number
- ACS 19639 and Certificate of Practice Number
-7023) have been appointed as Secretarial Auditor of
the Company for a term of 5 (Five) consecutive years
commencing from FY 2025-2026 till FY 2029-2030,
pursuant to Regulation 24A and other applicable
provisions of the SEBI LODR Regulations and section
204(1) of the Act. The Secretarial audit report in
Form MR- 3 for financial year 2025-26 is attached as
Annexure 1 to the Board's report.

There are no qualifications or adverse remarks
in the Secretarial Audit Report for the financial
year 2025-26.

A copy of the Annual Secretarial Compliance Report
for the financial year 25-26, signed by the secretarial
auditor is available on the website of the stock
exchanges and uploaded on the website of the
Company at https://aadharhousing.com/investor-
relations/disclosures-under-regulation-62-of-the-
sebi-lodr-regulation-2015-pdfannual-secretarial-
compliance-report.

Cost records and Auditors:

The provisions mandating maintenance of Cost
Records and conducting Cost Audit as prescribed
under Section 148 of the Act are not applicable to
the Company.

Corporate Governance report and
Compliance Certificate:

The Corporate Governance report as stipulated under
Schedule V Part C of the SEBI LODR Regulations forms
part of this Annual Report.

The Compliance certificate as required under
Schedule V Part E of the SEBI LODR Regulations,
confirming compliance with the requirements of
Corporate Governance received from M/s Aashish K.
Bhatt & Associates, Company Secretaries, is attached
as Annexure 2 to the Board's report.

I n accordance with Part D of Schedule V of the
SEBI LODR Regulations, declaration from Managing
Director & CEO of the Company has been received
confirming that all the Directors, Key Managerial
Personnel and the Senior Managerial Personnel of
the Company have affirmed the compliance and have
also complied to the Code of Conduct of Directors
and senior management for the financial year ended
March 31, 2026 and is attached as Annexure 3 to
this Report. The said code is hosted on the website
of the Company and can be accessed at web link :
https://aadharhousing.com/investor-relations/code-
of-conduct-of-the-board-of-directors-and-senior-
manage

27. Reporting on various Corporate
Governance Regulations &
Compliances under the Act:

i) Annual Return as per
section 134(3)(a):

During the year 2025-26, the Annual General
Meeting for the financial year 2024-25 was duly held
on July 29, 2025 and the Annual Return was filed
within prescribed time limit.

As provided under section 92(3) and 134(3)(a)
of the Act, Annual Returns of the Company are
placed on the website of the Company at https://
aadharhousing.com/investor-relations/disclosures-
under-regulation-62-of-the-sebi-lodr-regulation-
2015-pdfannual-return

ii) Number of meetings of the Board &
Committees under section 134(3)(b):

During the financial year under review, the Board of
Directors met periodically/as and when required, to
deliberate various issues, policy matters and take
suitable decisions etc. The details of Board of Directors
and their Meetings and also various other Board level
Committee Meetings are furnished separately under
the Corporate Governance Report, which forms part
of this Annual report.

iii) Directors’ Responsibility Statement
under section 134(3)(c):

As required by section 134(3)(c) read along with
section 134(5) of the Act, the Board of Directors
state that:

a. in the preparation of the Annual Financial
Statements for the financial year ended March
31, 2026, the applicable Accounting Standards

had been followed and there were no material
departures from the same;

b. the Directors had selected such accounting
policies and applied them consistently and made
judgments and estimates that are reasonable
and prudent so as to give a true and fair view of
the state of affairs of the Company as at March
31, 2026 and of the profit of the Company for
that period;

c. the Directors had taken proper and sufficient
care for the maintenance of adequate accounting
records in accordance with the provisions of this
Act for safeguarding the assets of the Company
and for preventing and detecting fraud and
other irregularities;

d. the Directors had prepared the annual financial
statements on a going concern basis;

e. the Directors, had laid down internal financial
controls to be followed by the Company and that
such internal financial controls are adequate and
were operating effectively.

f. the Directors had devised proper systems to
ensure compliance with the provisions of all
applicable laws and that such systems were
adequate and operating effectively.

iv) Details of Fraud Reporting to NHB & as
per provisions of section 134 (3) (ca) read
with section 143 (12) of the Act:

a) There were no material fraud cases amounting to
11 crore or above, detected and required to be
reported during the FY 2025-2026, as per the
provisions of section 134 (3) (ca) read with section
143 (12) of Act to the regulatory authorities.

b) Frauds of value involved for 11 lakh & above and
frauds committed by unscrupulous borrowers,
detected, during the FY 2025-2026 - the
Company has duly reported 39 fraud cases as
per Circular(s)/ Guidelines, issued by National
Housing Bank/ Reserve Bank of India.

v) In terms of section 134(3)(d) of the Act, your Board
states that the Independent Directors have given
a declaration under section 149(7) of the Act and
Regulation 25(8) of the SEBI LODR Regulations
confirming that they continue to meet the criteria
of independence as prescribed under Section
149(6) of the Act and Regulation 16(1)(b) of the SEBI
LODR Regulations.

vi) With regard to section 134(3)(e) of the Act, the
Company has duly followed the Nomination
Remuneration & Evaluation Policy (NRE Policy), which,
inter alia, lays down the approach for diversity of the
Board, criteria for identifying the persons who are
qualified to be appointed as Directors, Key Managerial
Personnel (KMP) & Senior Managerial Personnel of the

Company, along with the criteria for determination of
remuneration and evaluation of Board of Directors/
Committees (including Independent Directors) and
KMPs/Senior Managerial Personnel of the Company
and includes other matters, as prescribed under
the provisions of Section 178 of the Act. During the
financial year under review, the NRE policy has been
reviewed by the Board of Directors at its Meeting held
on January 30, 2026. Further pursuant to provisions
of RBI Master Directions, the Company has obtained
Fit & Proper declarations and Deed of Covenants
and various other declarations duly signed by all the
Directors of the Company.

The aforesaid policy is available on the website of the
Company, i.e. https://aadharhousing.com/investor-
relations/policies

vii) I n terms of section 134(3)(g) of the Act, the Company
has not made any Investment through two or more
layers of Investment Companies, pursuant to
provisions of section 186(1) of the Act. Further, the
Company being Housing Finance Company, all loans
are in the ordinary course of business and details of
the investment made by the Company are disclosed in
Financial Statements and Notes of Accounts, thereto,
which forms part of this Annual Report.

viii) Particulars of transactions with related
parties under section 134(3)(h) and
section 188 of the Act:

The transactions with related parties are entered
as per the Related Party Transaction Policy of the
Company, pursuant to provisions of section 188 of
the Act, read with the rules made thereunder and
Regulation 23 of SEBI LODR Regulations, after taking
necessary approval of Audit Committee of the Board.

A quarterly update is also given to the Audit Committee
and the Board of Directors on the Related Party
Transactions ('RPTs') undertaken by the Company
for their review and consideration and disclosures of
RPTs are also submitted to BSE and NSE on a half¬
yearly basis.

Apart from payment of sitting fees and commission
to Independent Directors, there is no pecuniary
relationship or transactions of the Independent/
Non-Executive Directors vis a vis the Company. The
details with respect to the related party transactions
are mentioned in the notes to the financial statements
audited for the financial year ended March 31, 2026.

There are no transactions to be reported as per
Section 188 of the Act read with Rule 15 of Companies
(Meetings of Board and its Powers) Rules, 2014 as
amended from time to time and hence the disclosure of
related party transaction as required in the prescribed
Form AOC - 2 is not applicable.

During the financial year under review, the Company
has not given any loans and advances in the nature
of loans to its subsidiaries or associate(s) or to

firms/companies in which Directors are interested.
Accordingly, the disclosure of particulars of loans/
advances, etc., as required to be furnished in
the annual accounts of the Company pursuant to
Regulations 53 (f) read with paragraph A of Schedule
V of the SEBI LODR Regulations is not applicable to
the Company.

The Audit Committee on March 31, 2025 has approved
the omnibus transaction limits for RPTs with related
parties and Directors for the financial year 2025-26
as per the note/limits circulated to the Committee
with clarifications.

During the financial year under review, the Company
has not entered into any transactions with any
person or entity belonging to the promoter/promoter
group which hold(s) 10% or more shareholding in
the Company.

The Related Party Transaction Policy of the Company,
duly approved by the Board can be accessed on the
website of the Company at link provided below:
https://aadharhousing.com/investor-relations/policy-
on-related-party-transaction

ix) Meetings of the Board and its
Committees:

Board

The Board of Directors of your Company meet
at regular intervals to discuss and decide on the
Company's performance and strategies. During
the financial year under review, the Board met 8
(Eight) times on April 17, 2025, May 6, 2025, July 25,
2025, October 10, 2025, November 7, 2025, December
18,2025, January 30, 2026 and March 17, 2026.

Further details on the Board, its Meetings,
composition and attendance are provided in the
Corporate Governance Report, which forms part of
this Annual Report.

Your Company has the following 12 (Twelve) Board-
level Committees, which have been established in
compliance with the requirements of the business and
relevant provisions of applicable laws and statutes:

• Audit Committee

• Nomination and Remuneration Committee

• Corporate Social Responsibility Committee

• Stakeholders' Relationship Committee

• Risk Management Committee

• IT Strategy Committee

• Asset Liability Management Committee

• Investment Committee

• Management Committee

• Share Transfer and Allotment Committee

• Willful Defaulter Review Committee

• Consumer Protection Committee

More information on all of the above Committees
including details of their Meetings, composition and

attendance are provided in the Corporate Governance
Report, which forms part of this Annual Report.

x) Transfer of profits to Reserves:-

In terms of section 134(3)(j) of the Act, the Company
has transferred a sum of 1219.10 crores to the Special
Reserves under Section 29C of National Housing Bank
Act, 1987 and Section 36(1)(viii) of the Income Tax
Act, 1961, in addition to other provisions created
during the financial year under review as per the
audited financials submitted to the Board.

xi) In order to conserve the resources for better growth
opportunity, there was no dividend recommended or
declared during the financial year under review, which
is in line with the Dividend Distribution Policy of the
Company. The policy is available on your Company's
website athttps://aadharhousing.com/investor-
relations/dividend-distribution-policy

xii) Material changes and commitments,
if any, affecting the financial position
of the Company which has occurred
between the end of the financial year
of the Company to which the financial
statements relate and the date of the
report, in terms of Section 134(3) (l) of
the Act:

There were no other material changes and
commitments affecting the financial position of
the Company.

xiii) Statement containing salient features of
the financial statements of subsidiaries
or associates companies or joint venture:

A report on the performance and financial position of
the Company's Subsidiary as per Section 129(3) of
the Act read with the Companies (Accounts) Rules,
2014, in the prescribed form AOC-1 is attached as
Annexure 4 to the Board's Report. The Company does
not have any associate companies or joint ventures as
on March 31, 2026.

xiv) Conservation of Energy, Technology
Absorption and Foreign Exchange
Earnings and Outgo in terms of Section
134(3)(m) of the Act read with Rule 8 of
Companies (Accounts) Rules, 2014:
Conservation of Energy

Your Company is not engaged in any manufacturing
activity and thus its operations are not energy
intensive. However, the Company always takes
adequate measures to ensure optimum utilization and
maximum possible saving of energy. The Company
has implemented processes to install energy efficient
devices in the branches such as 5-star Air conditioners
mostly along with VRV/VRF etc. The Company is

also installing energy-efficient devices such as LED
Lights, etc. in all the branches. The Company has
deployed energy-efficient printing machines in some
branches which consume very minimal energy for
printing and scanning. The Company has just started
procuring UPS, which runs on Lithium-ion batteries to
reduce carbon footprint against lead acid batteries.
The Company endeavours to follow mostly green
procurement wherever possible to reduce energy
consumption and reduce the overall carbon footprint.

Technology Upgradation

During the year, Aadhar Housing advanced its digital
transformation journey by deepening application-
level capabilities, strengthening infrastructure and
fortifying cyber security. The Company's focus
remained on enhancing customer experience, ensuring
regulatory compliance and building a resilient digital
ecosystem that supports growth and innovation.

A major thrust was placed on digital sales and customer
onboarding, where new platforms streamlined vendor
onboarding, standardized lead creation for Direct
Selling Agents and introduced a self-service digital
journey enabling customers to complete applications
and receive instant offer. Across the loan lifecycle,
the Company digitized critical processes with
modules for one-time settlements, asset auctions
and credit line automation. Online prepayment
options were introduced through secure link-based
systems, offering customers greater convenience and
improving collection efficiency. These innovations
collectively strengthened operational control and
transparency in loan management. To drive process
efficiency and workflow management, the Company
upgraded its document tracking system, automated
court record updates and launched the Green
Hatz Portal to centralize ideation and innovation
collaboration amongst staff. Automated NHB ADF
data submission ensuring prompt and correct
reporting to regulators, while portal-based user
access recertification strengthened IT governance.
Integration with government schemes was also
strengthened through seamless connectivity with
the PMAY portal, ensuring smoother processing of
applications under flagship initiatives.

On the technology infrastructure front, the Company
modernized its branch network with cloud-managed
Cisco Meraki-systems across branches, ensuring
standardized architecture and consistent service
quality. Cyber security was fortified through
centralized identity and access management across
key branches, enabling role-based access control and
strengthening the zero-trust framework. The adoption
of Secure Access Service Edge unified cloud security,
web filtering, and data loss prevention, while mobile
data management solutions safeguarded mobile
email access under conditional zero-trust policies.
Continuous cyber risk posture monitoring was

introduced through security rating platform, providing
independent visibility into external attack surfaces
and rectification tracking.

Collectively, these initiatives underscore Aadhar
Housing's commitment to building a future-ready digital
enterprise. By integrating advanced applications,
intelligent automation, robust infrastructure and
comprehensive cyber security, the Company has
positioned itself to deliver superior customer
experiences, maintain regulatory excellence, and
sustain operational resilience in an increasingly digital
financial services landscape.

Foreign exchange earning and outgo:

The foreign exchange earnings and outgo etc. and
other provisions of reporting as per the Act are given
below as applicable to the Company during the year
under review.

Business Responsibility and Sustainability
Reporting:

In accordance with Regulation 34(2)(f) of the
SEBI LODR Regulations, 2015, the top 1,000 listed
companies based on market capitalization are
required to include a Business Responsibility and
Sustainability Report (BRSR) in their Annual Reports.
Accordingly, the BRSR describing the initiatives taken
by the Company from an environmental, social and
governance perspective, forms part of this Annual
Report as Annexure 5.

xv) Corporate Social Responsibility under
Section - 134(3)(o):

Your Company has in place, Corporate Social
Responsibility Policy, as per the provisions of
the Companies (Corporate Social Responsibility
Policy) Rules, 2014 ('CSR Rules'), which lays down
the guidelines and mechanism for undertaking
socially useful projects for welfare and sustainable
development of the community at large. During the
financial year under review, the CSR policy has been
reviewed by the Board of Directors at its Meeting held
on May 6, 2025. According to the provisions of the
Act, the Corporate Social Responsibility Committee
was formed by the Company. The annual report on
CSR activities, the total amount of CSR contribution
and payment details are given in Annexure 6 to this

Board's Report. The Company has duly transferred
the unspent amount relating to ongoing projects to a
special account called the Unspent Corporate Social
Responsibility Account 2026, in accordance with
sub-section (6) of the CSR Rules within 30 days from
the end of the financial year 2025-26. The amount
shall be spent by the Company in pursuance of its
obligation towards the Corporate Social Responsibility
Policy within a period of three financial years from the
date of such transfer.

The CSR Policy is available on the website of the
Company, i.e. https://aadharhousing.com/investor-
relations/policies

xvi) Formal Annual Evaluation of the
Board, its Committees and of individual
directors under section 134(3)(p) and
rule 8(4) of the Companies (Accounts)
Rules, 2014:

Pursuant to the provisions of the Act and its Rules,
an annual evaluation of the performance of the
Board, its Committees and of individual Directors,
was carried out during the year. The NRC of the
Board has laid down the manner in which annual
evaluation of the performance of the Board, its
Committees and Individual Directors has to be made.
The evaluation is based on various parameters
as defined in the Nomination Remuneration and
Evaluation policy of the Company. The performance of
Non-independent Directors, Chairperson of the
Board, the Board as a whole,and the Committees
of the Board has been evaluated by Independent
Directors in a separate meeting held on March 10,
2026. The Board was briefed on the recommendations
of the Nomination & Remuneration Committee and
of the Separate Meeting of Independent Directors.
The Board at its meeting discussed the performance
of the Board, as a whole, its Committees and
Individual Directors.

The Nomination and Remuneration Committee has
also evaluated the Directors/ KMPs at the time of
their appointment.

xvii) Statement regarding opinion of
the Board with regard to integrity,
expertise and experience (including
the proficiency) of the independent
directors appointed during the year, in
terms of rule 8 (5) (iii a) of Companies
(Accounts) Rules, 2014 as amended :

The Independent Directors are selected as per the
applicable provisions of Act, read with RBI Master
Directions based upon the qualification, expertise,
track record, integrity and the 'fit and proper'
criteria and the Company obtains the necessary

information and declaration from the Directors. All
the Independent Directors of the Company have
strong academic background and having long stint
experience with renowned Government and private
organizations/corporates. The integrity/ expertise
of the Directors have been evaluated at the time of
appointment and every year by the Board and NRC at
their respective meetings.

Further, all Independent Directors have confirmed
that they have registered with the data bank of
Independent Directors maintained by any body,
institute or association, as may by notified by the
Central Government, and are either exempt or have
completed the online proficiency self- assessment
test conducted by the Indian Institute of Corporate
Affairs in accordance with the provisions of Section
150 of the Act.

xviii) Secretarial Standards of Institute of
Company Secretaries of India

Your Company is in compliance with the Secretarial
Standards specified by the Institute of Company
Secretaries of India ('ICSI') on Meetings of the Board
of Directors (SS-1) and General Meetings (SS-2).

xix) Vigil Mechanism / Whistle
Blower Policy:

In terms of section 177(9) of the Act and Rule 7 of
the Companies (Meetings of Board and its Powers)
Rules, 2014, read with the SEBI LODR Regulations, the
Board of Directors has put in place a Vigil Mechanism
and adopted a Whistle Blower Policy to provide
for adequate safeguards against victimization of
employees and directors who may avail of the vigil
mechanism/ whistle blower policy, by directly sending
mail to the Chairperson of the Audit Committee.
The Company affirms that no person was denied
access to the Audit Committee.

These provisions are already circulated to the
employees through the intra-net and the same is
also available at the website of the Company i.e,
https://aadharhousing.com/investor-relations/
disclosures-under-regulation-62-of-the-sebi-lodr-
regulation-2015-pdfdetails-of-establishment-of-
vigil-mechanism-whistle-blower

During the financial year under review, the Whistle
Blower Policy has been reviewed by the Board of
Directors at their meeting held on July 25, 2025.

xx) Investments, loans and guarantees given
by the Company:

Your Board further states that during the financial year
under review, your Company did not make any major
investment in other companies, bodies corporate,
provided loans and given guarantees, etc. above the

limits prescribed under section 186 the Act, read
with Companies (Meetings of Board and its Powers)
Rules, 2014, as applicable to the Company. Details of
Investments made, loans and guarantees given by the
Company are disclosed in the financial statements for
financial year 2025-26.

xxi) Name of the companies, which have
become or ceased to become subsidiary,
joint venture or associate company,
during the financial year under review

: NIL

xxii) Details of significant and material order,
passed by the Regulators or Court or
Tribunals, impacting the going concern
status and Company’s operations in
future : NIL

xxiii) Human Resources:

At Aadhar Housing, people constitute a core pillar of
the Company's long-term progress and organizational
strength. The Company recognizes its workforce as a
key driver of performance, resilience and sustainable
growth. People-first philosophy is embedded across
organizational practices, fostering an environment
that supports engagement, development and
empowerment. In recognition of this sustained focus,
Aadhar has been named among India's Top 50 Best
Workplaces in BFSI 2026 by Great Place to Work®,
India and has achieved the Great Place to Work®
certification for the seventh consecutive year.

During FY 2025-2026, the team of Aadhar Housing
has grown steadily from 4,583 employees last year to
5,430 employees at the end of this year. The Company
strengthened leadership capability, workforce
readiness and internal mobility through structured
development frameworks and talent initiatives such
as fast-track career growth programs and internal
job postings, supported by a robust blended learning
ecosystem. Employee engagement and well-being
were enhanced through a comprehensive Engagement
and Well-being Calendar, encompassing cultural
celebrations, wellness initiatives, health check-ups,
and community-building activities, while women-
focused programmes advanced inclusion through
targeted support and capability-building initiatives.
Recognition and transparent communication remained
core to the employee experience, with the rewards
and recognition programme, long-service awards,
and regular leadership town halls fostering trust and
shared ownership.

Collectively, these integrated efforts reinforce the
Company's commitment towards building a meaningful
employee experience and a culture shaped by trust
and teamwork.

xxiv) Training & Development :

At Aadhar Housing, capability building remains
a strategic priority focused on fostering a high-
performance, inclusive and future-ready workforce.
During FY 2025-2026, Learning & Development (L&D)
initiatives were tightly aligned with business objectives
through a blended, scalable learning ecosystem
designed to enhance functional, behavioural and
leadership capabilities across the organization.

This year, we launched Aadhar Gurukul - Learning
Management System (LMS) with a mobile-first
philosophy, the platform provides employees with
user-friendly access to diverse learning content and
seamless management features, effectively making
professional development accessible anytime and
anywhere while significantly enhancing the overall
employee experience.

To ensure role readiness and rapid integration, the
Company implemented several structured onboarding
and functional programs. The 'Praarambh' initiative
provides a role-based induction for all new hires,
while 'Induct Right' offers a phased onboarding
journey for Sales employees (M0-M3) to reduce time-
to-productivity through a structured model. These
are complemented by regular functional training
sessions across all business and enablement units,
which serve to communicate critical policy updates,
bridge operational gaps and maintain high levels of
job effectiveness.

Complementing technical training, Aadhar Housing
places a heavy emphasis on behavioural and soft skills
development. Targeted interventions for frontline and
leadership teams focus on core competencies such
as communication, conflict management, negotiation
and a growth mindset to drive collaboration and
accountability. Leadership development follows a
laddered approach to secure a future-ready pipeline,
highlighted by the Leadership Symposium on emerging
trends like AI, a residential program at 11M Indore for
high-potential mid-managers, and the 'We LEADD'
initiative in partnership with the Great Managers
Institute targeted at Branch Manager development.

Furthermore, the Company has successfully
expanded its outreach by training 2,636 Village
Level Entrepreneurs (VLEs) to support rural market
growth. This expansion is underpinned by a strict
commitment to compliance, with mandatory training
in AML/KYC, POSH, and Information Security to

reinforce ethical conduct. Finally, the "Championing
Customer Service" program ensures that a customer-
first mindset is embedded throughout the workforce,
utilizing case-based learning to standardise service
excellence and improve responsiveness across all
customer touchpoints.

xxv)Details of Employee Stock Option Plan
Schemes implemented by the Company:

a) Aadhar Housing Finance Limited -
Employee Stock Options Plan, 2018
(‘ESOP Plan 2018’):

The ESAR scheme was approved in March, 2018 by
the previous promoter group and at the Meeting held
on January 24, 2024, the shareholders approved the
amendments and changes to the ESAR scheme and
rechristened it's name as Aadhar Housing Finance
Limited - Employee Stock Options Plan, 2018 ('ESOP
Plan 2018') to align the ESOP Plan 2018 with the
requirements of the SEBI (Share Based Employee
Benefit & Sweat Equity) Regulations, 2021. As at the
end of financial year 25-26, there are no outstanding
stock options under the ESOP Plan 2018.

b) Aadhar Housing Finance Limited -
Employee Stock Option Plan 2020
(‘ESOP 2020’)

In order to reward the performance and elicit long term
commitment of the employees towards the growth of
the Company, the ESOP Plan 2020 was introduced
with the approval of Board & Shareholders. ESOP
Plan 2020 was originally approved by the Members
of the Company on April 27, 2020 and further
amended by members through special resolutions
passed at the extra-ordinary general meetings of the
Company held on March 13, 2021, March 23, 2022,
May 26, 2022 and January 24, 2024 and ratified at the
34^th Annual General Meeting of the Company held on
September 14, 2024.

As on March 31, 2026, total number 93,35,814
stock options were granted and outstanding to the
identified & eligible existing employees including the
Whole Time/ Executive/ Managing Director(s) of the
Company under the ESOP Plan 2020.

c) Aadhar Housing Finance Limited-Employee Stock Option Plan 2025 (‘ESOP Plan 2025’)

The Company views employee stock options as long-term incentive instruments to enable the employees to share
the value they create for the Company in the years to come. Therefore, the new ESOP Plan 2025 was introduced
with the approval of Board on October 10, 2025 & Shareholders on November 16, 2025 through special resolutions
passed by way of postal ballot. The maximum number of ESOPs that may be granted under the ESOP Plan 2025 has
been set at 3,11,22,170 equity shares. This pool comprises:

i. 1,34,06,852 new Options approved under the ESOP Plan 2025;

ii. 71,75,952 Options which were previously approved under the Aadhar Housing Finance Limited Employee Stock
Option Plan 2020 ("ESOP Plan 2020") that remain ungranted as on the date of approval of the ESOP 2025; and

iii. 1,05,39,366 Options that have been granted under the ESOP Plan 2020 but are unvested, which if they lapse
or clawed back on cessation of employment or any other conditions as set out in ESOP 2020 then it can be
regranted under this Plan.

Such Options as mentioned in (ii) and (iii) from the ESOP Plan 2020 pool shall be deemed to be transferred to and
form part of the pool of Options available for Grant under the new ESOP Plan 2025, subject to the same terms and
conditions as applicable to Options granted under the ESOP Plan 2025.

The ESOP Plan 2020 and ESOP Plan 2025 are in compliance with the SBEB Regulations and there were no amendments
to the aforesaid Plans during FY 2025-26. The Disclosures in compliance with SBEB Regulations are uploaded on the
website of the Company at https://aadharhousinq.com/investor-relations/disclosures-under-sebi-regulations-2021

Further, a certificate from the Secretarial Auditors with respect to implementation of your Company's ESOP Plan
2020 and ESOP Plan 2025, will be available at the ensuing AGM of the Company for inspection by the Members.

xxvi) Buy-back of the Company’s own shares:

During the financial year under review, the Company did not make any buy back of any of its shares or share
equivalent/stock options during the financial year under review, hence the provisions of section 68 of the Act, are
not applicable.

xxvi) Particulars of employees in receipt of remuneration above the limits and other
applicable provisions of the Act:

Disclosures about remuneration required pursuant to the section 197(12) of the Act and Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below-

*Mr. O. P. Bhatt ceased to be Chairperson and Director of the Company w.e.f close of business hours on September 12, 2025.

**Mr. Raj Vikash Verma was appointed as Independent Director w.e.f. May 6, 2025. He has not received any commission during
FY 2025-2026, percentage increase/(decrease) in remuneration is not comparable.

***Dr. Punita Kumar Sinha was appointed as Director of the Company w.e.f. August 7, 2024 and hence was not paid commission
during FY 2024-2025. Accordingly, percentage increase/(decrease) in remuneration is not comparable.

#For determining the percentage increase in remuneration, Employee Value Scheme paid in FY 2026 and perquisite value of options
exercised in FY 2026 under Employee Stock option Scheme is excluded.

Remuneration of Independent Directors includes commission paid to Directors and excludes payment of sitting fees.

The Non- Executive Nominee Directors of the Company do not receive any remuneration from the Company.

(i) the percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer,
Company Secretary, in the financial year -

Executive Vice Chairman- 7%

Managing Director & CEO - 12%

Chief Financial Officer - 12.1%

Company Secretary - 10%

For determining the percentage increase in remuneration, perquisite value of options exercised in FY 2026 under
Employee Stock option Scheme and Employee Value Scheme paid in FY 2026 are excluded.

(ii) the percentage increase in the median remuneration of employees in the financial year- 1.16%

(iii) the number of permanent employees on the rolls of company- 5,430

(iv) average percentile increase already made in the salaries of employees other than the managerial personnel in the
last financial year and its comparison with the percentile increase in the managerial remuneration and justification
thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration;

Key Managerial Persons - 8.3%

Other - 10.6%

For determining the percentage increase in remuneration, Employee Value Scheme paid in FY 2026 and perquisite
value of options exercised in FY 2026 under Employee Stock option Scheme is excluded.

(v) It is further confirmed that the remuneration paid to employees is as per the remuneration policy of the Company.

(vi) The statement containing names of top ten employees in terms of remuneration drawn and the particulars of
employees as required under Section 197(12) of the Act read with Rule 5(2) and Rule 5(3) of the Companies
(Appointment and Remuneration of Key Managerial Personnel) Rules, 2014, is available on the Website of the
Company at https://aadharhousing.com/disclosures-under-regulation-62-of-the-sebi-lodr-regulation-2015-
pdf/annual-report

(vii) None of the employees listed in the said list is a relative of any Director in the Company.

(viii) There was no employee either throughout the financial year or part thereof who was in receipt of remuneration
which, in the aggregate, was in excess of that drawn by the managing director or whole-time director and who
held by himself or along with his spouse or dependent children, not less than two percent of the equity shares
of the Company.

(ix) None of the Directors receive any commission or remuneration from holding or subsidiary of the Company.

xxv30 Other Statutory disclosures

(i) During the year, the Company has not made any application under the Insolvency and Bankruptcy Code, 2016
('IBC Code'). Further, there is no Corporate Insolvency Resolution Process initiated under the IBC Code.

(ii) During the financial year under review, there was no one-time settlement done with the Banks or Financial
Institutions. Therefore, the requirement to disclose details of difference between amounts of valuation done at
the time of one-time settlement and the valuation done, while taking loan from Banks or Financial Institutions
along with reasons thereof, is not applicable.

(iii) The Company has not issued any shares with differential rights and hence no information as per provisions of
Section 43(a)(ii) of the Act read with Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014
is furnished.

(iv) The Company has not issued any sweat equity shares during the financial year under review and hence no
information as per provisions of Section 54(1)(d) of the Act read with Rule 8(13) of the Companies (Share Capital
and Debenture) Rules, 2014 is furnished.

(v) During the financial year under review, there were no instances of non-exercising of voting rights in respect of
shares purchased directly by employees under a scheme pursuant to Section 67(3) of the Act read with Rule
16(4) of Companies (Share Capital and Debentures) Rules, 2014.

(vi) During the financial year under review, the Company has complied with the provisions relating to the Maternity
Benefits Act, 1961.

xxix) Details of utilization of funds raised through preferential allotment or qualified

institutional placement as specified under Regulation 32(4) of the Listing Regulations:

During the financial year under review, the Company has not done any preferential allotment or qualified institutional
placement of equity shares.

Acknowledgement by the Management:

Your Board of Directors would like to place on record their sincere gratitude to the shareholders, customers, debenture
holders, Reserve Bank of India, National Housing Bank, Registrar of Companies, Securities and Exchange Board of
India, Insurance Regulatory and Development Authority of India, Ministry of Corporate Affairs, all Bankers to the
Company, Central & State government departments, Tax Authorities, other stake-holders and all other business
associates for their continued support during the financial year under review. The Directors would also like to thank
the BSE Ltd., National Stock Exchange of India Limited, National Securities Depository Limited and Central Depository
Services (India) Limited and the Credit Rating Agencies for their support & co-operation.

Your Company and Management team also express their sincere gratitude to the Promoter, Holding Company, BCP
Asia II Holdco VII Pte. Ltd. and our Investors for their unstinted support & co-operation.

The Directors also extend their special appreciation to the employees at all levels for their contribution towards the
growth of the Company which was made possible by their hard work, dedication and continued support.

By the Order of & for and on behalf of the Board of Directors of
Aadhar Housing Finance Limited

Mr. Raj Vikash Verma Mr. Rishi Anand

DIN:- 03546341 DIN:-02303503

Independent Director & Managing Director &

Non- Executive Chairperson Chief Executive Officer

Date : May 5, 2026
Place: Mumbai