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Informist, Thursday, Feb. 5, 2026

By Udita S. Jaiswal

MUMBAI – Aavas Financiers Ltd. reported a rise in its net profit for the December quarter, due to robust growth in revenue from operations, especially interest income. The pace of its top-line growth exceeded the rise in costs, as the lender was able to bring down its cost of borrowing.
 

The company reported a net profit of INR 1.7 billion for the December quarter, up almost 4% sequentially and over 16% on year. The net profit marginally exceeded analysts' estimate of INR 1.67 billion for the December quarter.

The company reported total revenue from operations of INR 6.74 billion, up over 1% sequentially and nearly 13% on year. The non-banking finance company reported a 12% on year rise in interest income to INR 5.74 billion. The interest income was up nearly 2% sequentially. The company's total income rose nearly 13% on year and 1% sequentially to INR 6.75 billion.

Total expenses were INR 4.55 billion in the reporting quarter, up over 11% year on year but marginally down sequentially. The on-year rise in total expenditure was driven by rising employee benefit expenses. Employee benefit costs jumped nearly 26% on year to INR 1.14 billion during the quarter. Of this, the company estimated around INR 25 million was due to the impact of the new Labour Codes notified by the central government in November. Aavas Financiers was able to keep its finance costs, the largest part of its expenses, in check. The non-bank lender's finance costs for the reporting quarter rose 6% on year and marginally lower on quarter to INR 2.75 billion. 

The lender was able to bring its cost of borrowing down 56 basis points on year to 7.68% in Oct-Dec, it said in a release. Aavas Financiers likely benefited from lower bank loan rates after the Reserve Bank of India's Monetary Policy Committee cut the policy repo rate by 125 bps between February and December 2025. Consequently, the lender's net interest margin expanded by 28 basis points on year to 7.82% in the reporting quarter.

As of Dec. 31, the company's assets under management were up 15% on year to INR 222 billion. Its disbursements for the December quarter were INR 17.2 billion, up 10% on quarter. The Jaipur-based lender primarily finances low-cost housing for retail borrowers, including self-employed customers in semi-urban and rural areas.

For Apr-Dec, the company reported net profit of INR 4.73 billion, up almost 13% year on year. Its revenue stood at INR 19.69 billion during the same period, up almost 15% on year.

On Thursday, the company's shares ended at INR 1,379.50 on the National Stock Exchange, down 2.9% from the previous close. The company announced its results after market hours.  End

Edited by Saji George Titus

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