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Informist, Monday, May 4, 2026

By Suryash Kumar

MUMBAI – Aavas Financiers Ltd. is likely to post a healthy rise in its net profit for the March quarter, driven by growth in loan disbursements and assets under management, according to brokerages. Benign credit cost is also expected to support the Jan-Mar earnings.

The company's net profit for the quarter is projected at INR 1.78 billion, up nearly 16% on year and over 3% on quarter, according to the average of estimates from seven brokerages. The highest estimate for net profit is INR 1.84 billion from Motilal Oswal Financial Services Ltd., while the lowest estimate is INR 1.68 billion from Kotak Securities Ltd.

The net interest income of the housing loan finance company is seen at INR 3.43 billion for the March quarter, up nearly 27% on year and over 14% on quarter, according to the average of estimates. The highest estimate for net interest income is INR 4.21 billion from YES Securities (India) Ltd. and the lowest estimate is INR 2.88 billion from Kotak Securities.

Aavas Financiers' net profit for the December quarter was INR 1.70 billion, up over 16% on year, and its total revenue from operations was INR 6.74 billion, up nearly 13% on year. The company's net interest margin is expected to fall 5 basis points on quarter as housing finance companies are facing "heightened competitive intensity, with banks becoming increasingly aggressive over the past 2-3 quarters by offering home loans at significantly lower rates," according to Motilal Oswal.

Its credit cost is expected to fall 1 bps from the previous quarter to 0.1% in the March quarter, according to ICICI Securities Ltd.

Loan disbursements have likely picked up in the March quarter, with JM Financial Institutional Securities Ltd. estimating it at INR 24 billion, up 16% on year and nearly 37% on quarter. The brokerage also expects Aavas Financiers' assets under management at INR 235 billion as of Mar. 31, up 15% on year and almost 6% on quarter. The company's assets under management as of Dec .31 were INR 222 billion, and INR 204 billion as of Mar. 31, 2025.

YES Securities expects healthy collections and recoveries for the lender in the March quarter, which are likely to improve the asset quality.

The Jaipur-based lender provides housing loans to low- and middle-income segment customers in semi-urban and rural areas, and operates in 15 states and union territories through 436 branches. It will announce its Jan-Mar earnings on Tuesday.

Monday, shares of the company closed at INR 1,381.60 on the National Stock Exchange, marginally up from the previous session. The stock has risen over 6% since the company announced its December quarter earnings on Feb. 5.

Of nine brokerage reports on the company available with Informist, eight have a 'buy' recommendation on the stock with an average target price of INR 1,724. This is nearly 25% lower than the market closing price Monday. The remaining one has a ‘hold' recommendation.

Following are the Jan-Mar earnings estimates for Aavas Financiers Ltd. from seven brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Tanima Banerjee

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