Aavas Financiers reported a robust performance for the quarter and financial year ended March 31, 2026. The company achieved a 15% year-on-year growth in AUM to Rs. 234.5 billion and a net profit of Rs. 1.82 billion for the fourth quarter. With an expanded network of 435 branches, the company remains committed to high-quality asset management, sustainable growth, and improved operational efficiency, positioning itself for long-term value creation in the affordable housing segment.
Financial Highlights of FY26
For the financial year 2026, Aavas Financiers demonstrated resilience and profitable growth. The company reported a 15% year-on-year growth in AUM, reaching Rs. 234.5 billion. Total disbursements for the year stood at Rs. 67.8 billion. A significant achievement was the 18% year-on-year growth in net profit for the fourth quarter, reaching Rs. 1.82 billion. Net interest margins (NIMs) also saw positive momentum, expanding by 44 basis points sequentially to 8.45% in Q4.
Operational Expansion and Asset Quality
Aavas continued to scale its franchise, adding 31 new branches during the last quarter, bringing the total network to 435 branches across 15 states. This expansion is concentrated in high-potential markets such as Tamil Nadu, Uttar Pradesh, and Gujarat. Despite this aggressive growth, the company maintained pristine asset quality, with GNPA improving to 1.05% and 1+ DPD remaining below 4%. The management emphasized that their credit-first approach continues to ensure best-in-class asset quality.
Strategic Priorities and Future Outlook
Under new leadership, Aavas is focused on a sharper execution strategy, including optimizing channel composition and leveraging digital platforms to enhance productivity. The company aims for consistent 20%-plus AUM growth and is targeting high-teen returns on equity (ROE). By focusing on core strengths and maintaining a disciplined risk management framework, Aavas aims to capitalize on structural enablers in the affordable housing sector, such as improved affordability driven by repo rate trends and continued investment in Tier 2 and Tier 3 markets.
Source: BSE
