Aavas Financiers reported a 16% YoY growth in Assets Under Management (AUM), reaching ₹214 billion in H1FY26. Net profit increased by 11% YoY to ₹3.04 billion. The company’s spread stood at 5.23%, with Net Interest Margin (NIM) at 7.81%. Gross Stage 3 assets remained low at 0.85%, demonstrating robust asset quality and capital adequacy.
Financial Highlights for H1FY26
Aavas Financiers has announced its unaudited financial results for the half-year ended September 30, 2025, showcasing substantial growth across key performance indicators:
- Assets Under Management (AUM): Increased by 16% YoY, reaching ₹213.57 billion.
- Net Interest Income: Grew by 16% YoY to ₹6.48 billion.
- Net Profit: Increased by 11% YoY to ₹3.04 billion.
- Net Worth: Rose by 16% YoY to ₹46.80 billion.
Key Performance Metrics
The company’s operational efficiency and asset quality remained strong:
- Spread: Improved to 5.23%, an increase of 34 bps.
- Net Interest Margin (NIM): Increased to 7.81%, up by 20 bps.
- 1+ DPD (Overall): Stood at 3.99%.
Strategic Developments
Aavas Financiers has focused on several strategic initiatives to drive growth and efficiency:
- Disbursements in Q2FY26 grew by 21% YoY.
- Cost-to-income ratio improved by 262 bps quarter-on-quarter to 43.7%.
- The company expanded its branch network to 405 branches.
Management Commentary
Mr. Sachinder Bhinder, Managing Director & Chief Executive Officer, commented on the company’s commitment to serving underserved customers and fostering housing affordability. He highlighted the reduction in turnaround time for loan sanctions and the company’s focus on optimizing yield and credit quality.
Future Outlook
Aavas Financiers remains committed to maintaining strong governance, asset quality, and profitability. The company’s strategic initiatives are aimed at driving sustainable growth and maximizing shareholder value through technology adoption and customer experience enhancement.
Source: BSE
