AAVAS Financiers reported a 15% YoY growth in Assets Under Management (AUM) reaching ₹222 bn. Net Profit increased by 13% YoY. The company saw a 40 bps YoY expansion in spread to 5.34% and improved asset quality with 1+ DPD at 3.80%. During Q3 FY26, the company disbursed loans worth ₹17.2 bn.
Financial Performance Highlights
AAVAS Financiers announced its financial results, showcasing significant growth and improved efficiency. Key highlights include:
- Assets Under Management (AUM): Reached ₹222 bn, a 15% increase year-over-year.
- Net Profit: Grew by 13% YoY.
- Spread: Expanded by 40 bps YoY, reaching 5.34%.
- NIM: Stood at 7.82%.
- Asset Quality: Maintained strong asset quality, with Net Stage 3 at 0.79% and 1+ DPD at 3.80%.
Operational Performance
The company reported strong operational performance for Q3 FY26:
- Loan Disbursements: ₹17.2 bn disbursed during the quarter, a 10% sequential growth.
- Borrowing Costs: Improved by 56 bps YoY to 7.68%.
- NIM (as % of total assets): Increased to 8.01%.
- Opex-to-Assets ratio: Declined sequentially to 3.44%.
- Cost-to-Income ratio: Decreased sequentially to 42.9%.
Asset Quality and Credit Costs
AAVAS Financiers maintained pristine asset quality:
- 1+ DPD: Improved by 19 bps sequentially to 3.80% as of December 2025.
- GNPA: Improved by 5 bps sequentially to 1.19%.
- Credit Costs: Remained stable at 16 bps.
Management Commentary
Mr. Sachinder Bhinder, Managing Director & Chief Executive Officer, commented on the company’s performance, highlighting the accomplishment of surpassing ₹20,000 crores in balance sheet size and raising approximately ₹975 crore through NCD issuance. The turnaround time from loan login to sanction has been reduced to 6 days. Over 2,800 Aavas customers have benefited from government schemes, receiving subsidies totaling more than ₹90 million.
Source: BSE
