Aavas Financiers Limited has released its results for the quarter and half-year ended September 30, 2026. The company highlighted significant improvements in productivity, with RO productivity reaching 1.2 files per month in Q2FY27, and aiming for 1.5 files per month by FY27. Management expressed confidence in achieving sustainable profitable growth through enhanced operational efficiencies and a customer-first approach, projecting a 20% growth over the long term.
Aavas Financiers Limited Q2 FY27 Earnings Call Transcript
Aavas Financiers Limited has submitted the transcript of its earnings call for the quarter and half-year ended September 30, 2026. The call, held on October 26, 2026, provided insights into the company’s financial performance, operational highlights, and future outlook.
Financial and Operational Performance Highlights
During the call, Mr. Manu Singh, MD & CEO, shared that Aavas is on track to cross the milestone of ₹250 billion in Assets Under Management (AUM) by October 2026. The company aims to achieve ₹500 billion in AUM by focusing on customer-first approach, higher productivity, and improved operating leverage. Key performance indicators discussed include:
- Productivity per RO: Improved to 1.2 files per month in Q2FY27, up from 1.1 files in Q1FY27, with September productivity reaching 1.3 files. The target is to reach approximately 1.5 files per month by the end of FY27.
- Revenue per RO: Saw a sharp improvement of 29% in H1FY27, demonstrating execution rigor and improved resource economics.
- Opex Ratio: Improved by 18 bps YoY to 3.33% in H1FY27, with an aim to reduce it to below 3% through further gains in productivity and efficiency.
- Loan Disbursements: For H1FY27, disbursed loans worth ₹35.1 billion, a 30% YoY growth driven by volumes.
- AUM Growth: Grew by 16.1% YoY to ₹248.0 billion as of September 26, 2026.
- Net Profit Growth: Delivered 16.4% YoY growth in Net Profit for H1FY27.
- Cost of Borrowing (CoB): Maintained stable at 7.64% despite a volatile interest rate environment.
Branch Network and Strategy
The company expanded its branch network to 443 across 15 states and added over 21,500 new customers in H1FY27. Aavas continues to invest in branch expansion to deepen its presence and drive productivity. Technology plays a crucial role in combining physical distribution with faster digital processes and data-led decision-making to enhance customer experience.
Future Outlook
Management expressed confidence in Aavas being well-positioned to accelerate growth and deliver more than 20% growth over the long term. The company remains focused on sustainable profitable growth with strong risk discipline and tech-led efficiency, aiming to be a gold standard in governance and customer-first approach.
Source: BSE
