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Informist, Tuesday, Feb. 3, 2026

By Udita S. Jaiswal

MUMBAI – Aavas Financiers Ltd. is expected to report a healthy rise in its net profit for the December quarter, supported by robust growth in loan disbursements and assets under management, according to brokerages tracking the company. Lower credit costs are likely to support the earnings and margins are seen expanding due to a decline in funding costs and steady yields.

The company's net profit for the quarter is estimated at INR 1.67 billion, up nearly 14% on year and almost 2% on quarter, according to the average of estimates from eight brokerages. The highest estimate for net profit is INR 1.74 billion from Elara Securities (India) Pvt. Ltd., while the lowest estimate is INR 1.45 billion from Prabhudas Lilladher Pvt. Ltd.

The net interest income of the company is estimated at INR 3.34 billion, up nearly 32% on year and nearly 16% on quarter, according to the average of estimates. The highest estimate for the net interest income is INR 4.02 billion from by YES Securities (India) Ltd. and the lowest estimate is INR 2.79 billion by Nirmal Bang Equities Pvt. Ltd.

Aavas Financer's net profit for the September quarter was INR 1.64 billion, up 11% on year, and its total revenue was INR 6.67 billion, up 15% on year. The company will report its earnings for the December quarter Thursday.

The company's net interest margin is expected to expand to 7.1% on quarter, up 10 basis points, driven by a marginal decline in funding costs and rise in yields, according to Kotak Securities Ltd. The non-banking financial company's net interest margin in the previous quarter was 56 bps, up 8.04% on quarter.

Disbursements of the non-banking financial company are expected to rise 14%, resulting in a 16% on-year growth in its assets under management, according to Kotak Securities. In the previous quarter, disbursements had risen 21% on year and 36% on quarter to INR 15.6 billion. The company's assets under management at the end of the previous quarter were INR 213.6 billion.

"Asset quality of the housing finance company is likely to remain largely steady, while credit costs are likely to remain benign," Motilal Oswal Financial Services Ltd. said. Gross non-performing asset ratio in the previous quarter was stable at 1.24%.

Out of seven brokerage reports on the company available with Informist, six have a 'buy' recommendation on the stock with an average target price of INR 1,858. This is 28% higher than the current market price. On Tuesday, shares of the company closed at INR 1,429.40 on the National Stock Exchange, down 1.3% from the previous session. The stock has fallen 12% since the company announced its September quarter earnings.

Following are the Oct-Dec earnings estimates for Aavas Financiers from eight brokerages in descending order of the estimate of net profit in INR billion:

End

Edited by Ashish Shirke

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