Earnings Review
Aavas Financiers Q1 net profit falls QoQ as revenue declines
This story was originally published at 19:48 IST on 12 August 2025
Register to read our real-time news.Informist, Tuesday, Aug. 12, 2025
--Analysts saw Aavas Financiers Apr-Jun net profit INR 1.51 bln
--Aavas Financiers Apr-Jun net profit INR 1.39 bln
--Aavas Financiers Apr-Jun net profit INR 1.39 bln vs INR 1.26 bln year ago
--Aavas Financiers Apr-Jun revenue INR 6.28 bln vs INR 5.42 bln year ago
MUMBAI – Aavas Financiers Ltd. reported a marginal sequential decline in its net profit for the June quarter depsite significantly higher year-on-year revenue growth. The company reported a net profit of INR 1.39 billion for the June quarter, down more than 9% on quarter but up 10% on year. The net profit came in lower than analysts' estimate of INR 1.51 billion.
The company reported total revenue from operations of INR 6.28 billion, down 1% on quarter and up 16% on year. The revenue is significantly higher than analysts' estimates of INR 2.99 billion.
Total expenditure for the reporting quarter was INR 4.49 billion, up 18% on year from INR 3.82 billion reported in the year-ago quarter. The company's finance cost rose 15% to INR 2.71 billion for the reporting quarter from the INR 2.35 billion reported on year-ago quarter.
The company's assets under management grew 16% on quarter to INR 207.4 billion for Apr-Jun from INR 178.4 billion year ago. Its disbursements declined to INR 11.45 billion, down 5% from INR 12.11 billion in the year-ago quarter, primarily due to a one-time impact of change in recognising disbursements.
The company's net interest margin rose 7 basis points on year to 7.48% for the reporting quarter. Its cost of borrowing for the reporting quarter declined by 22 bps sequentially to 8.02%.
On Tuesday, shares of the company ended at INR 1,727.50 on the National Stock Exchange, up marginally. Aavas announced its financial results after market hours. End
Edited by Tanima Banerjee
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