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Informist, Tuesday, Jul. 21, 2026

 

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--Aavas Financiers Apr-Jun net profit INR 1.71 bln 
--Analysts saw Aavas Financiers Apr-Jun net profit at INR 1.77 bln 
--Aavas Financiers Apr-Jun revenue INR 7.09 bln 
--Aavas Financiers Apr-Jun net profit INR 1.71 bln vs INR 1.39 bln year ago 
--Aavas Financiers Apr-Jun revenue INR 7.09 bln vs INR 6.28 bln year ago 
--Aavas Financiers provision coverage ratio 66.99% on Jun 30 
--Aavas Financiers capital risk adequacy ratio 44.66% on Jun 30 
--Aavas Financiers liquidity coverage ratio 163.89% on Jun 30 
--Aavas Financiers AUM INR 239.31 bln on Jun 30, up 15.4% on year 
--Aavas Financiers Apr-Jun net interest margin 7.70% vs 7.48% year ago 
--Aavas Financiers Apr-Jun net interest income INR 3.38 bln, up 18.2% on year
--Aavas Financiers Apr-Jun loan disbursement INR 16.1 bln, up 41% on year
--Aavas Financiers to raise up to INR 2 bln via NCDs 
--Aavas Financiers CEO: Will continue to invest in branch expansion 
--Aavas Financiers: Believe spread compression will go down to sub-5% FY27 
--Aavas Financiers: RoE, RoA expected to remain stable FY27 
--Aavas Financiers: Committed to deliver 22-23% growth in disbursements 
--Aavas Financiers: Committed to deliver 17-18% growth in AUM 
--Aavas Financiers: Target medium-term AUM growth at 20% 
 

 

 

By Radhika Tiwari

 

MUMBAI – Aavas Financiers Ltd. reported a jump in its net profit on the back of sharp growth in loan disbursements. The company's net profit rose to INR 1.71 billion, up 23% on year from INR 1.39 billion. This was lower than Street estimate of INR 1.77 billion. 

 

The Jaipur-based housing finance company's total income rose 13% on year to INR 7.09 billion from INR 6.28 billion. For the June quarter, Aavas Financier's provision coverage ratio was 66.99% on June 30. Its capital risk adequacy ratio was 44.66% and its liquidity coverage ratio was 163.89%. 

 

The company's assets under management at the end of June quarter increased to INR 239 billion, up 15.4% on year and marginally up from INR 235 at the end of March. Its net interest margin also increased to 7.70% on year from 7.48%. Aavas Financiers' net interest income was INR 3.38 billion for the June quarter, up 18.2% on year from INR 2.86 billion. The company reported active loan accounts of 275,869, up around 10% from 250,694.

 

The housing finance company plans to raise up to INR 2 billion through the issuance of three-year non-convertible debentures on a private placement basis. The company's board cleared the fund-raising plan Tuesday.

 

"During the quarter, we expanded our branch network to 440 across 15 states. We will continue to invest in branch expansion to further strengthen and diversify our presence," Manu Yeshpal Singh, chief executive officer said. The lender had 438 branches at the end of March.

 

The company reduced its prime lending rate by 10 basis points. Consequently, the spread fell by 5 bps on year to 5.06%, as borrowing costs remained stable at 7.64% sequentially. Aavas Financiers' return on assets improved 25 bps on year to 3.19% and return on equity improved by 78 bps on year to 13.34% in the June quarter. The company expects its performance on both metrics to remain stable in 2026-27 (Apr-Mar). The company expects to grow its loan disbursements 22-23% on year. It expects to grow its assets under management 17-18% on year. 

 

"During the quarter, we disbursed loans worth Rs. 16.1 bn, (INR 16.1 billion) delivering robust growth of 41% YoY (year-on-year). This performance was driven by a strong pickup in volumes, meaningful improvement in resource productivity, and healthy 38% YoY growth in the Home Loan segment," Singh said.  

 

Tuesday, Aavas Financiers shares ended at INR 1,521.7 on the National Stock Exchange, up nearly 2% from Monday. The company detailed its earnings after market hours.  End

 

Edited by Pankaj Aher

 

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