Housing Finance company Aavas Financiers announced Q1FY26 results Assets under Management (AuM) of the company registered a growth of 16% to reach 207.4 billion as on 30 June 2025. Disbursements during Q1FY26 stood at Rs 11.5 billion, factoring a one-time impact of transitioning to a realisation basis disbursement recognition model. Our Net profit for Q1FY26 grew by 10% YoY to Rs 1.39 billion, led by a robust 14% YoY growth in Net Interest Income. Opex to Assets ratio saw a decline of 25 bps QoQ in Q1FY26 at 3.46%, whereas on a YoY basis, there is an increase of 19 bps on account of the increase in ESOP costs. Our spread during the quarter expanded by 22 bps sequentially to 5.11% as AuM yield remained stable at 13.13% and our cost of borrowing declined to 8.02%. Our NIM in absolute terms has increased by 16% YoY in Q1FY26, while NIM as a percentage of total assets during Q1FY26 stood at 7.48% up 17 bps YoY. Our asset quality continues to be pristine, within the guided range, with 1+ DPD well below 5% at 4.15% in Q1FY25, and Gross Stage 3 & Net Stage 3 stood at 1.22% and 0.84% respectively. Credit cost during Q1FY26 was 24 bps impacted by seasonality. In terms of the borrowing mix, 49% of our borrowings are from Term Loans, 25% from Assignment, 14% from NHB Refinancing, 11% from the debt capital market. Net Worth grew by 16% YoY to Rs. 45.1 billion as on 30 June 2025. ROA stood at 2.94% and ROE stood at 12.56% in Q1FY26. The total number of branches stands at 397 as on 30 June 2025. Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, Q1FY26 was a landmark quarter for Aavas, marking a pivotal moment in our journey. We successfully concluded the change in promoter process and are proud to welcome CVC Capital Partners as our new promoter. The trust and conviction shown by CVC in Aavas is a strong testament to the strength of our franchise and the vast opportunity in the affordable housing finance sector in India. Their global perspective, institutional depth, and strategic insight position Aavas to accelerate into its next phase of growth and innovation. I would like to take this opportunity to express my sincere gratitude to the visionary leadership of our former promoters, Kedaara Capital and Partners Group. Under their stewardship, what began as an ambitious proof of concept has grown into a scalable institution—one that has transformed lives and made affordable homeownership a reality for thousands of families. This quarter also marks a significant milestone in our commitment to governance, transparency and putting the customer at the centre of everything we do. We’ve taken a historic step by transitioning to a realisation-based model for disbursement recognition - a forward-looking and conservative approach that reflects our intent to stay one step ahead, aligning not just with regulatory expectations, but with their true spirit. Our strategic focus remains on optimising yield and credit quality. We achieved a 35 bps YoY improvement in yield this quarter, driven by targeted initiatives to optimise mix and pricing. Further, our proactive liability management has helped reduce our cost of borrowings by 22 bps QoQ, enabling us to deliver a healthy spread above 5%, at 5.11%. Aavas maintains a well-diversified liability franchise supported by prudent cash flow management. As of June 2025, we remain well-capitalised with a Capital to Risk (Weighted) Assets Ratio (CRAR) of 43.2%. Following the successful completion of our technological transformation, we have begun to realise measurable improvements. As of June 2025, the turnaround time from login to sanction has been reduced to 6 days, a significant enhancement from the earlier peak of 13 days. Our paper usage has been cut by 59% and we have rolled out digital agreements in 120 branches. Aligned with our strategy of contiguous growth, we continue to expand our footprint in both core and emerging markets. Our branch network now spans 397 branches across 14 states. Our strong underwriting standards and tech-enabled collection efforts have enabled us to preserve the pristine asset quality of the portfolio. As of June 2025, the 1+ days past due metric stands at 4.15%, while Gross Stage 3 remains contained at 1.22%, reflecting the portfolio’s overall health. Government initiatives such as the Interest Subsidy Scheme (ISS) under PMAY 2.0, combined with a supportive interest rate environment, continue to bolster homebuyer sentiment and improve affordability. I’m pleased to report that over 450 Aavas customers have benefited from these schemes, receiving subsidies totalling more than Rs 15 million. We also want to acknowledge the NHB for its continued leadership in promoting transparency, governance, inclusion, diversity, and capability-building in the sector. We’re proud to share that Aavas has won the “Product Innovation” award at NHB’s inaugural Housing Finance Excellence Awards 2025. Our firm commitment to Governance, Asset Quality, Profitability, and Growth remains paramount. By harnessing advanced technology and delivering exceptional customer experiences, we are confident in a bright future. Our strategic initiatives are poised to drive sustainable growth and maximise shareholder value.” Result PDF
Conference Call with Aavas Financiers Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.
Housing Finance company Aavas Financiers announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Total income: Rs 63,748.80 lakh compared to Rs 54,680.21 lakh during Q4FY24. Profit before tax: Rs 19,322.38 lakh compared to Rs 17,749.41 lakh during Q4FY24. Net Profit: Rs 15,367.92 lakh compared to Rs 14,261.53 lakh during Q4FY24. FY25 Financial Highlights: Assets under Management (AuM) of the company has crossed milestone of Rs 200 billion this year. In FY25, our AUM grew by 18% YoY at Rs 204.2 billion. Disbursements during Q4FY25 grew by 27% QoQ to Rs 20.2 billion whereas in FY25 disbursement grew by 10% YoY to Rs 61.23 billion. Our Net profit for Q4 FY25 grew by 8% YoY to Rs 1.54 billion whereas for FY25 Net Profit grew by 17% YoY to Rs 5.74 billion, led by robust growth in operating profit led by healthy improvement in operating leverage. Opex to Assets ratio saw considerable improvement of 26 bps YoY in FY25 at 3.32% as a result of our cost optimisation strategy. Our spread during the quarter moderated by 5 bps sequentially to 4.89% on account of softening of AUM yield by 5 bps to 13.13% while our cost of borrowings remained unchanged at 8.24%. Our NIM in absolute terms has increased by 14% YoY in Q4 FY25 and 10% YoY in FY25. NIM as a percentage of total assets during Q4 FY25 stood at 8.11%, and at 7.64% during FY25. Our asset quality continues to be pristine, within the guided range with 1 day past due well below 5% at 3.39% in Q4 FY25 and Gross Stage 3 & Net Stage 3 under 1.25% stood at 1.08% and 0.73% respectively. Credit cost during Q4FY25 was 17 bps and 15 bps for FY25. In terms of the borrowing mix, 51% of our borrowings are from Term Loans, 25% is from Assignment, 14% from NHB Refinancing; 10% is from debt capital market (of which 83% is from development finance institutions like IFC, CDC & ADB). • Net Worth grew by 16% YoY to Rs 43.61 billion as on 31st March 2025. ROA was stable at 3.27% and ROE improved by 18 bps YoY to 14.12% in FY25. The total number of branches stands at 397 as on 31st March 2025, with 30 additions in FY25. Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, Building on the momentum of previous quarters, the affordable housing sector continues to present immense opportunities to drive growth and economic inclusivity. At Aavas, our steadfast commitment remains focused on empowering unserved, underserved, and underbanked customers in Tier 2 to Tier 4 markets by providing customized financial solutions that cater to their unique aspirations. Our approach, rooted in achieving risk-adjusted returns, reinforces our mission to foster housing affordability and create enduring value in these communities. Following the successful completion of the technological transformation during the year, we have already begun to observe tangible benefits. As of March 2025, the TAT from login to sanction has been reduced to just 7 days, a substantial improvement from the previous peak of 13 days. Additionally, the initiative has resulted in significant cost and time savings, contributing to enhanced productivity and operational efficiency across the organization. During the quarter, we expedited our branch expansion efforts, establishing 24 new locations to enhance our footprint in key states. As a result, our total branch network now comprises 397 branches across 14 states. Consistent with our strategic approach of contiguous growth, we remain committed to broadening our presence in both core and emerging markets. Aavas has well diversified liability franchised with prudent cash management. Aavas is wellcapitalized, boasting a Capital to Risk (Weighted) Assets Ratio (CRAR) of 44.5% as of March 2025. Our robust underwriting practices and collection efforts, backed by cutting-edge technology, have a yielded positive outcome with the 1+ days past due, contained at 3.39% as of March 2025 an improvement of 46 bps QoQ. The portfolio’s maintains strong overall health, demonstrated by a Gross Stage 3 at 1.08%. The launch of the PMAY 2.0 scheme, including the interest subsidy scheme for urban housing, will be pivotal in improving loan accessibility for economically weaker sections and low-income groups, empowering countless individuals to realize their dreams of homeownership. This bold initiative reflects the Government’s steady commitment to ensuring that every Indian has access to safe and affordable housing, driving inclusive growth and prosperity for all. It aligns with Aavas's mission and vision, enhancing our dedication to delivering innovative housing solutions for underserved communities. Our steadfast focus on Governance, Asset Quality, Profitability, and Growth remains at the core of our mission. Leveraging advanced technology and delivering exceptional customer experiences, we are confident in building a promising future. Through strategic initiatives, we aim to drive sustainable growth while maximizing value for our shareholders.” Result PDF