As per ICRA’s estimates, the AUM of AHFCs increased by 17% YoY in FY2026 to Rs. 1,66,716 crore as on March 31, 2026, supported by good demand and the faster pace of growth in the LAP segment. The underpenetrated market and the Government’s thrust on ‘housing for all’ are likely to support growth, going forward. ICRA expects the AUM of AHFCs to rise by 19-21% in FY2027.

• The share of AHFCs in the overall HFC on-book portfolio has been rising over past few years and was estimated at 15% as on March 31, 2026 compared to 11% as on March 31, 2021.
  
• Bank borrowing and NHB refinance formed 59% of the overall borrowing mix as on March 31, 2026. Capital market funding has remained limited, with only a few higher-rated entities tapping this segment.