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AAVAS Financiers Results: Latest Quarterly Results & Analysis

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Aavas Financiers Ltd. 11 Nov 2025 17:40 PM
Result PDF

Q2FY26 Quarterly Result Announced for Aavas Financiers Ltd.

Housing Finance company Aavas Financiers announced Q2FY26 results

  • Assets under Management (AuM) of the company registered a growth of 16% to reach Rs 213.6 billion as on 30-Sep-25.
  • Disbursements during Q2FY26 grew by 21% YoY and 36% QoQ at Rs 15.6 billion.
  • Our Net profit for H1FY26 and Q2FY26 grew by 11% YoY to Rs 3.03 billion and 1.64 billion respectively, led by robust growth in Net Interest Income.
  • Our spread during the quarter expanded by 34 bps YoY to 5.23% driven by our cost of borrowing improving by 30 bps YoY to 7.85%.
  • Our NIM in absolute terms increased by 18% YoY in Q2FY26, while NIM as a percentage of total assets during Q2FY26 stood at 8.04% up 56 bps QoQ.
  • Our Opex-to-Assets ratio saw a marginal increase of 5 bps sequentially to 3.51%, while the Costto-Income ratio declined by 262 bps quarter-on-quarterto 43.7%, reflecting improved efficiency gains.
  • Our asset quality remains pristine, with 1 DPD below 5%, improving by 16 bps sequentially to 3.99% as of September 2025, while GNPA levels remained stable at 1.24%.
  • Credit costs improved sharply by 8 bps sequentially to 16 bps. driven by lower 1 DPD flow and improvement in Stage 2 buckets. We continue to maintain our guidance of keeping credit costs below 25 bps on a sustainable basis.
  • In terms of the borrowing mix, 50% of our borrowings are from Term Loans, 25% is from Assignment, 14% from NHB Refinancing; 11% is from debt capital market (of which 53% is from development finance institutions like IFC, CDC & ADB) and 1% from Cash Credit and CPs.
  • Our Net Worth continues to compound steadily, growing at 16% YoY, with the strength of our capital position driven by consistently compounding internal accruals.
  • Our ROA improved significantly by 46 bps sequentially to 3.40% and ROE improving by 175 bps QoQ to 14.31%.
  • We added 8 branches during the quarter, taking the total number of branches stands at 405 as on 30 th Sep 2025.

Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, At Aavas, we are committed to serving unserved, underserved, and underbanked customers in Tier 2 to Tier 5 markets by developing tailored financial solutions. Our focus on achieving riskadjusted returns underscores our dedication to fostering housing affordability and creating sustainable value in these communities.

This period, we recorded a strong 36% QoQ growth in disbursement, reflecting sustained and broad-based demand for housing in our segment. Our sanction-to-disbursement ratio has now normalized and is now ~80%, indicating improved conversion efficiency.

Our strategic priorities remain centered on optimizing both yield and credit quality. During the H1FY26, we achieved a 10-bps improvement in yields over H1 FY25, supported by targeted initiatives to enhance our portfolio mix and pricing discipline. Further, our proactive liability management has helped reduce our cost of borrowing by 17 bps QoQ, enabling us to deliver a healthy spread above 5%, at 5.23%.

Following the successful completion of our technological transformation, we have begun to realize measurable improvements. As of Sep 2025, the turnaround time from login to sanction has been reduced to 6 days, a significant enhancement from the earlier peak of 13 days. Our paper usage has been cut by 59% and have rolled out digital agreements in 223 branches.

Aligned with our strategy of contiguous growth, we added 8 new branches, all in Tamil Nadu, taking our footprint to 405 branches across 14 states. Aavas remains well-capitalised with a CRAR of 46.4% as of September 2025.

Our strong underwriting standards and tech-enabled collection efforts have enabled us to preserve the pristine asset quality of the portfolio. As of Sep 2025, the 1 days past due metric stands at 3.99%, while Gross Stage 3 remains contained at 1.24%.

Strategic Priorities:

  • Disciplined growth in core affordable housing markets (Tiers 2–5), contiguous-state expansion.
  • Portfolio mix optimisation to support yield and asset quality.
  • Continued digitisation across sourcing, underwriting, disbursement, and collections.
  • Prudent liability management to protect spreads and liquidity.”

Result PDF

Result PDF

Housing Finance company Aavas Financiers announced Q1FY26 results

  • Assets under Management (AuM) of the company registered a growth of 16% to reach 207.4 billion as on 30 June 2025.
  • Disbursements during Q1FY26 stood at Rs 11.5 billion, factoring a one-time impact of transitioning to a realisation basis disbursement recognition model.
  • Our Net profit for Q1FY26 grew by 10% YoY to Rs 1.39 billion, led by a robust 14% YoY growth in Net Interest Income.
  • Opex to Assets ratio saw a decline of 25 bps QoQ in Q1FY26 at 3.46%, whereas on a YoY basis, there is an increase of 19 bps on account of the increase in ESOP costs.
  • Our spread during the quarter expanded by 22 bps sequentially to 5.11% as AuM yield remained stable at 13.13% and our cost of borrowing declined to 8.02%.
  • Our NIM in absolute terms has increased by 16% YoY in Q1FY26, while NIM as a percentage of total assets during Q1FY26 stood at 7.48% up 17 bps YoY.
  • Our asset quality continues to be pristine, within the guided range, with 1 DPD well below 5% at 4.15% in Q1FY25, and Gross Stage 3 & Net Stage 3 stood at 1.22% and 0.84% respectively. Credit cost during Q1FY26 was 24 bps impacted by seasonality.
  • In terms of the borrowing mix, 49% of our borrowings are from Term Loans, 25% from Assignment, 14% from NHB Refinancing, 11% from the debt capital market.
  • Net Worth grew by 16% YoY to Rs. 45.1 billion as on 30 June 2025.
  • ROA stood at 2.94% and ROE stood at 12.56% in Q1FY26.
  • The total number of branches stands at 397 as on 30 June 2025.

Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, Q1FY26 was a landmark quarter for Aavas, marking a pivotal moment in our journey. We successfully concluded the change in promoter process and are proud to welcome CVC Capital Partners as our new promoter. The trust and conviction shown by CVC in Aavas is a strong testament to the strength of our franchise and the vast opportunity in the affordable housing finance sector in India. Their global perspective, institutional depth, and strategic insight position Aavas to accelerate into its next phase of growth and innovation.

I would like to take this opportunity to express my sincere gratitude to the visionary leadership of our former promoters, Kedaara Capital and Partners Group. Under their stewardship, what began as an ambitious proof of concept has grown into a scalable institution—one that has transformed lives and made affordable homeownership a reality for thousands of families.

This quarter also marks a significant milestone in our commitment to governance, transparency and putting the customer at the centre of everything we do. We’ve taken a historic step by transitioning to a realisation-based model for disbursement recognition - a forward-looking and conservative approach that reflects our intent to stay one step ahead, aligning not just with regulatory expectations, but with their true spirit.

Our strategic focus remains on optimising yield and credit quality. We achieved a 35 bps YoY improvement in yield this quarter, driven by targeted initiatives to optimise mix and pricing.

Further, our proactive liability management has helped reduce our cost of borrowings by 22 bps QoQ, enabling us to deliver a healthy spread above 5%, at 5.11%. Aavas maintains a well-diversified liability franchise supported by prudent cash flow management. As of June 2025, we remain well-capitalised with a Capital to Risk (Weighted) Assets Ratio (CRAR) of 43.2%.

Following the successful completion of our technological transformation, we have begun to realise measurable improvements. As of June 2025, the turnaround time from login to sanction has been reduced to 6 days, a significant enhancement from the earlier peak of 13 days. Our paper usage has been cut by 59% and we have rolled out digital agreements in 120 branches.

Aligned with our strategy of contiguous growth, we continue to expand our footprint in both core and emerging markets. Our branch network now spans 397 branches across 14 states.

Our strong underwriting standards and tech-enabled collection efforts have enabled us to preserve the pristine asset quality of the portfolio. As of June 2025, the 1 days past due metric stands at 4.15%, while Gross Stage 3 remains contained at 1.22%, reflecting the portfolio’s overall health.

Government initiatives such as the Interest Subsidy Scheme (ISS) under PMAY 2.0, combined with a supportive interest rate environment, continue to bolster homebuyer sentiment and improve affordability. I’m pleased to report that over 450 Aavas customers have benefited from these schemes, receiving subsidies totalling more than Rs 15 million.

We also want to acknowledge the NHB for its continued leadership in promoting transparency, governance, inclusion, diversity, and capability-building in the sector. We’re proud to share that Aavas has won the “Product Innovation” award at NHB’s inaugural Housing Finance Excellence Awards 2025.

Our firm commitment to Governance, Asset Quality, Profitability, and Growth remains paramount. By harnessing advanced technology and delivering exceptional customer experiences, we are confident in a bright future. Our strategic initiatives are poised to drive sustainable growth and maximise shareholder value.”

 

Result PDF

Housing Finance company Aavas Financiers announced Q4FY25 & FY25 results

Q4FY25 Financial Highlights:

  • Total income: Rs 63,748.80 lakh compared to Rs 54,680.21 lakh during Q4FY24.
  • Profit before tax: Rs 19,322.38 lakh compared to Rs 17,749.41 lakh during Q4FY24.
  • Net Profit: Rs 15,367.92 lakh compared to Rs 14,261.53 lakh during Q4FY24.

FY25 Financial Highlights:

  • Assets under Management (AuM) of the company has crossed milestone of Rs 200 billion this year. In FY25, our AUM grew by 18% YoY at Rs 204.2 billion.
  • Disbursements during Q4FY25 grew by 27% QoQ to Rs 20.2 billion whereas in FY25 disbursement grew by 10% YoY to Rs 61.23 billion.
  • Our Net profit for Q4 FY25 grew by 8% YoY to Rs 1.54 billion whereas for FY25 Net Profit grew by 17% YoY to Rs 5.74 billion, led by robust growth in operating profit led by healthy improvement in operating leverage.
  • Opex to Assets ratio saw considerable improvement of 26 bps YoY in FY25 at 3.32% as a result of our cost optimisation strategy.
  • Our spread during the quarter moderated by 5 bps sequentially to 4.89% on account of softening of AUM yield by 5 bps to 13.13% while our cost of borrowings remained unchanged at 8.24%.
  • Our NIM in absolute terms has increased by 14% YoY in Q4 FY25 and 10% YoY in FY25. NIM as a percentage of total assets during Q4 FY25 stood at 8.11%, and at 7.64% during FY25.
  • Our asset quality continues to be pristine, within the guided range with 1 day past due well below 5% at 3.39% in Q4 FY25 and Gross Stage 3 & Net Stage 3 under 1.25% stood at 1.08% and 0.73% respectively. Credit cost during Q4FY25 was 17 bps and 15 bps for FY25.
  • In terms of the borrowing mix, 51% of our borrowings are from Term Loans, 25% is from Assignment, 14% from NHB Refinancing; 10% is from debt capital market (of which 83% is from development finance institutions like IFC, CDC & ADB). • Net Worth grew by 16% YoY to Rs 43.61 billion as on 31st March 2025.
  • ROA was stable at 3.27% and ROE improved by 18 bps YoY to 14.12% in FY25.
  • The total number of branches stands at 397 as on 31st March 2025, with 30 additions in FY25.

Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, Building on the momentum of previous quarters, the affordable housing sector continues to present immense opportunities to drive growth and economic inclusivity. At Aavas, our steadfast commitment remains focused on empowering unserved, underserved, and underbanked customers in Tier 2 to Tier 4 markets by providing customized financial solutions that cater to their unique aspirations. Our approach, rooted in achieving risk-adjusted returns, reinforces our mission to foster housing affordability and create enduring value in these communities.

Following the successful completion of the technological transformation during the year, we have already begun to observe tangible benefits. As of March 2025, the TAT from login to sanction has been reduced to just 7 days, a substantial improvement from the previous peak of 13 days. Additionally, the initiative has resulted in significant cost and time savings, contributing to enhanced productivity and operational efficiency across the organization.

During the quarter, we expedited our branch expansion efforts, establishing 24 new locations to enhance our footprint in key states. As a result, our total branch network now comprises 397 branches across 14 states. Consistent with our strategic approach of contiguous growth, we remain committed to broadening our presence in both core and emerging markets.

Aavas has well diversified liability franchised with prudent cash management. Aavas is wellcapitalized, boasting a Capital to Risk (Weighted) Assets Ratio (CRAR) of 44.5% as of March 2025.

Our robust underwriting practices and collection efforts, backed by cutting-edge technology, have a yielded positive outcome with the 1 days past due, contained at 3.39% as of March 2025 an improvement of 46 bps QoQ. The portfolio’s maintains strong overall health, demonstrated by a Gross Stage 3 at 1.08%.

The launch of the PMAY 2.0 scheme, including the interest subsidy scheme for urban housing, will be pivotal in improving loan accessibility for economically weaker sections and low-income groups, empowering countless individuals to realize their dreams of homeownership. This bold initiative reflects the Government’s steady commitment to ensuring that every Indian has access to safe and affordable housing, driving inclusive growth and prosperity for all. It aligns with Aavas's mission and vision, enhancing our dedication to delivering innovative housing solutions for underserved communities.

Our steadfast focus on Governance, Asset Quality, Profitability, and Growth remains at the core of our mission. Leveraging advanced technology and delivering exceptional customer experiences, we are confident in building a promising future. Through strategic initiatives, we aim to drive sustainable growth while maximizing value for our shareholders.”

Result PDF

Housing Finance company Aavas Financiers announced Q3FY25 results

  • Disbursements during Q3FY25 grew by 17% YoY and 23% QoQ to Rs 15.94 billion.
  • Our Net profit for Q3FY25 grew by 26% YoY to Rs 1.46 billion, led by robust growth in Net Income coupled with sharp improvement in operating leverage.
  • For Q3FY25 the Opex to Asset ratio stood at 3.27% and improved by 23 bps over Q3FY24.
  • Our Spreads expanded by 5 bps sequentially to 4.94% in Q3FY25 and our NIMs expanded more than 10 bps YoY during the quarter to 7.75%.
  • Our asset quality continues to be pristine, with 1 DPD of less than 4% at 3.85% as of December 2024. In Q3FY25, Gross Stage 3 was at 1.14% and Net Stage 3 was at 0.81%.
  • Net Worth grew by 16% YoY to Rs. 41.97 billion as on 31st December 2024.
  • The total number of branches stands at 373 as on 31st December 2024.

Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, The strong demand environment in the affordable housing segment reinforces our mission to empower more individuals and families to achieve their dream of  homeownership, further driving our growth and success. At Aavas, our staunch commitment is to serve the unserved, underserved, and underbanked customers across Tier 2 to Tier 5 markets by developing bespoke financial solutions tailored to their unique needs. Our emphasis on achieving riskadjusted returns underscores our dedication to fostering housing affordability and creating sustainable value in these communities.

The technological transformation completed in the previous quarter has already begun to deliver remarkable results. The Login to Sanction TAT has been reduced to just 7 days in December 2024, down from the peak of 13 days. Additionally, significant cost and time savings have been realized which will enhance productivity and efficiency across the organization.

During the quarter our branch network has now expanded to 373 branches across 14 states. Remaining focused on our strategy to deepen and reinforce our presence in contiguous manner, we will be expanding our branch network in the coming months across core markets.

Aavas has well diversified liability franchised with prudent cash management. Aavas is wellcapitalized, boasting a Capital to Risk (Weighted) Assets Ratio (CRAR) of 45.6% as of December 2024.

Our granular underwriting practices and collection efforts, backed by cutting-edge technology, have a yielded positive outcome with the 1 days past due, contained at 3.85% as of December 2024 an improvement of 12 bps QoQ and 10 bps YoY. The portfolio’s maintains strong overall health, demonstrated by a Gross Stage 3 at a mere 1.14%.

The launch of the PMAY 2.0 scheme, including the interest subsidy scheme for urban housing, will be pivotal in improving loan accessibility for economically weaker sections and low-income groups, empowering countless individuals to realize their dreams of homeownership. This bold initiative reflects the Government’s steady commitment to ensuring that every Indian has access to safe and affordable housing, driving inclusive growth and prosperity for all. It aligns with Aavas's mission and vision, enhancing our dedication to delivering innovative housing solutions for underserved communities.

Our unwavering commitment to Governance, Asset Quality, Profitability, and Growth remains paramount. By harnessing advanced technology and delivering exceptional customer experiences, we are confident in a bright future. Our strategic initiatives are poised to drive sustainable growth and maximize shareholder value.”

Result PDF

Housing Finance company Aavas Financiers announced H1FY25 results

Financial Highlights:

  • AUM of Rs 184 billion; Growth of 20% YoY.
  • PAT at Rs 2.74 billion; Growth of 18% YoY.
  • Gross Stage 3 at 1.08%; 1 DPD at 3.97%.
  • ROA at 3.28% and ROE at 14.01%.
  • Positive ALM & Strong Capital Base.

Other Highlights:

  • Assets under Management (AuM) of the company grew by 20% YoY and stood at ~Rs 184 billion.
  • Disbursements during H1FY25 were Rs 25.05 billion registering growth of 8% YoY.
  • Net Profit grew by 18% YoY to Rs 2.74 billion for H1FY25 led by a 12% YoY growth in Net Interest Margin to Rs 6.36 billion, coupled with sharp improvement in operating leverage.
  • Opex to Assets ratio improved sharply by 40 bps YoY in H1FY25 at 3.25% and improved by 9 bps QoQ to 3.18% in Q2FY25.
  • Spread and NIM stood at 4.89% and 7.61%, respectively for H1FY25.
  • As on Sep-24, Gross Stage 3 was 1.08%, Net Stage 3 was 0.78% and 1 DPD stood at 3.97%. Credit cost during the quarter was 11 bps for Q2FY25 and 16 bps for H1FY25.
  • n terms of the borrowing mix, 50.8% of our borrowings are from Term Loans, 25.1% is from Assignment & Co-lending, 18.1% from NHB Refinancing; 6.0% is from debt capital market (of which 69.6% is from development finance institutions like IFC, CDC & ADB), with no borrowings through CPs.
  • Net Worth grew by 15% YoY to Rs 40.5 billion as on H1FY25.
  • The total number of branches stands at 372 as on H1FY25. During Q2FY25, we have expanded in the state of Tamil Nadu with a branch opening in Hosur. With this Aavas now covers 14 States/ UT.

Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, For India to be the global leader in economic growth, we believe the housing sector will be at the forefront of this transformation. Current conditions are marked by low mortgage penetration and a significant urban housing shortage presenting unique opportunities for innovation. At Aavas, we are committed to serving unserved, underserved, and underbanked customers in Tier 2 to Tier 5 markets by developing tailored financial solutions. Our focus on achieving risk-adjusted returns underscores our dedication to fostering housing affordability and creating sustainable value in these communities.

The green shoots of our technology transformation are already evident, with improvements in turnaround time (TAT) enhancing customer service. This tech-led evolution is expected to further boost productivity and efficiency across the organization.

We are excited to share that our network has expanded to 372 branches across 14 states, highlighted by the recent opening of a new branch in Hosur, Tamil Nadu, during Q2 FY25. Building on a robust portfolio and the valuable insights we have gathered from our operations in Karnataka since 2021, this strategic expansion underscores our ongoing confidence in the potential of this region.

Aavas has well diversified liability franchised with prudent cash management Aavas is wellcapitalized, boasting a Capital to Risk (Weighted) Assets Ratio (CRAR) of 46.48% as of September 2024.

Our granular underwriting practices and collection efforts, backed by cutting-edge technology, have led to an improvement in 1 days past due, contained at 3.97% as of September 2024. The portfolio’s health remains robust, with Gross Stage 3 at a mere 1.08%.

The launch of the PMAY 2.0 scheme, including the interest subsidy scheme for urban housing, will be pivotal in improving loan accessibility for economically weaker sections and low-income groups, empowering countless individuals to realize their dreams of homeownership. This bold initiative reflects the Government’s unwavering commitment to ensuring that every Indian has access to safe and affordable housing, driving inclusive growth and prosperity for all. It aligns with Aavas's mission and vision, enhancing our dedication to delivering innovastive housing solutions for underserved communities.

We continue to maintain a razor-sharp focus on Governance, Asset Quality, Profitability, and Growth. By leveraging technology and creating superior customer experiences, we are optimistic about the future. Our strategic initiatives are set to drive sustainable growth and enhance shareholder value.”

Result PDF

Housing Finance company Aavas Financiers announced Q1FY25 results:

Financial Highlights:

  • AUM of Rs 178 billion; Growth of 22% YoY
  • PAT at Rs 1.26 billion; Growth of 15% YoY
  • Gross Stage 3 at 1.01%; 1 DPD at 3.65%
  • ROA at 3.01% and ROE at 13.14%
  • Positive ALM & Strong Capital Base

Business Highlights:

  • Assets under Management (AUM) of the company grew by 22% YoY and stood at ~Rs 178 billion.
  • Disbursement during the quarter was Rs 12.11 billion i.e., a growth of 13% YoY.
  • Net Profit grew by 15% YoY to Rs 1.26 billion for Q1FY25 boosted by a 10% YoY growth in Net Total Income, coupled with strong AUM growth.
  • Opex declined sequentially by 4% resulting in an improvement in Opex ratio by 29bps QoQ to 3.27% during the quarter.
  • Spread and NIM during the quarter stood at 5.00% and 7.31%, respectively.
  • In Q1FY25, Gross Stage 3 is at 1.01% and Net Stage 3 is 0.72%. 1 DPD remained well below 4% at 3.65%. Credit cost during the quarter was at 20 bps.
  • In terms of Borrowings mix, 91.4% of our borrowings are from Term Loans, Assignment, and NHB Refinancing, 8.6% of our borrowings are from debt capital market (of which 77.2% is from development finance institutions like IFC, CDC & ADB), with no borrowings through CPs.
  • Net Worth grew by 15% YoY to Rs 39 billion as on 30th June 2024.
  • The total number of branches stands at 371 as on 30th June 2024. During Q1 FY25, we have added 4 new branches.

Commenting on the performance Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, India stands on the cusp of a remarkable economic journey, and the housing sector is poised to lead the charge. With low mortgage penetration and a significant urban housing shortage across various income levels and regions, Aavas is committed to being at the forefront of this industry transformation. Our focus remains steadfast on serving the unserved, underserved, and underbanked customers in Tier 2 to Tier 5 markets, with a relentless pursuit of risk-adjusted returns.

The green shoots of our technology transformation are already evident, with improvements in turnaround time (TAT) enhancing customer service. This tech-led evolution is expected to further boost productivity and efficiency across the organization.

Our network has expanded to 371 branches across 13 states, with the addition of 4 new branches this quarter. This strategic expansion deepens our footprint and reinforces our presence in a contiguous manner.

Thanks to prudent cash management and a robust liability profile, we have successfully contained borrowing costs and maintained our spreads around 5%, in line with our guidance. Aavas is wellcapitalized, boasting a Capital to Risk (Weighted) Assets Ratio (CRAR) of 44.48% as of June 2024.

Our granular underwriting practices and collection efforts, backed by cutting-edge technology, have led to an improvement in 1 days past due, decreasing from 3.68% in June 2023 to 3.65% in June 2024. The portfolio’s health remains robust, with Gross Stage 3 at a mere 1.01% in June 2024.

The FY25 Union Budget marks a transformative leap in addressing India’s housing needs by significantly expanding the Pradhan Mantri Awas Yojana to include 30 million Additional Houses, backed by a proposed central assistance of Rs.2.2 trillion over the next 5 years, underscoring the Government of India’s commitment to providing “Housing For All”.

The introduction of an interest subsidy scheme for urban housing will make loans more accessible for the economically weaker sections and low-income groups, enabling countless individuals to realize their dreams of home ownership. This decisive step forward underscores the Government’s commitment to ensuring every Indian has access to safe, affordable housing, fostering inclusive growth and prosperity for all. This aligns perfectly with the mission and vision of Aavas.

We continue to maintain a razor-sharp focus on Governance, Asset Quality, Profitability, and Growth. By leveraging technology and creating superior customer experiences, we are optimistic about the future. Our strategic initiatives are set to drive sustainable growth and enhance shareholder value.”

Result PDF

Housing Finance company Aavas Financiers announced Q4FY24 & FY24 results:

Financial Highlights:

  • Assets under Management (AUM) of the company grew by 22.2% YoY at ~Rs 173 billion.
  • Disbursement in Q4FY24 grew strongly to report the highest-ever quarterly disbursements with growth of 39% QoQ and 20% YoY to Rs 18.93 billion.
  • Net Profit grew by 15% YoY to Rs 4.91 billion for FY24 led by 17% YoY growth in Net Total Income.
  • In Q4FY24, our Net Profit grew by 22% QoQ.
  • Spread and NIM during the quarter stood at 5.06% and 7.91% respectively.
  • Gross Stage 3 is at 0.94% comprising 0.82% of >90 DPD assets & 0.12% of up to 90 DPD assets (categorized as GNPA/Gross Stage 3 on account of RBI notification) and Net Stage 3 is 0.67%
  • In terms of Borrowings mix, 91.0% of our borrowings are from Term Loans, Assignment, and NHB Refinancing, 9.0% of our borrowings are from debt capital market (of which 76.6% is from development finance institutions like IFC, CDC & ADB), with no borrowings through CPs.
  • Net Worth grew by 15% YoY to Rs. 37,733 million as of 31st Mar 2024.
  • The total number of branches stands at 367 as of 31st Mar 2024.  

Commenting on the performance Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, India is about to embark on a ten-year economic trajectory. Given its low mortgage penetration and severe urban housing shortage across income levels and geographic areas, the housing industry is poised to be a bellwether among all other industry sectors. We strongly believe that we can continue our momentum in serving the unserved, underserved, and underbanked customers in Tier 2 to Tier 5 markets, with relentless focus on risk-adjusted returns.

FY24 has been the year of transformation and transition where we have undergone the technology transformation coupled with management transition despite of this the company has delivered on its stated guidance of AUM growth as well as on profitability. In Q4FY24, we delivered the highestever quarterly disbursement with growth of 39% QoQ & 20% YoY.

Green Shoots in technology transformation are already visible with TAT improvement and in turn resulting in better customer service. We are confident that this tech transformation would benefit us improving productivity and efficiency across organization.

Aavas now does business across 367 branches in 13 States. We have added 21 new branches in FY24. We continue to deepen our footprint in the states where we are already present in a contiguous manner.

Our prudent management of cash and strong liability profile enabled us to contain the cost of borrowing and maintain our spreads in line with guidance of around 5%. The company is well capitalized with CRAR of 44% as of Mar-2024 and sufficient balance sheet liquidity of Rs 30.3 billion.

The Company’s focused granular underwriting risk practices & collections efforts backed by technology, led to an improvement in 1 days past due from 3.30% in Mar-2023 to 3.12% in Mar-2024. Portfolio health remains strong with Gross Stage 3 at 0.94% in Mar-2024.

We continue to maintain razor-sharp focus on Governance, Asset Quality, Profitability, and Growth leveraging technology, and creating superior customer experience. We remain optimistic about the future and are confident that our strategic initiatives will continue to drive sustainable growth and shareholder value.”

Result PDF

Housing Finance company Aavas Financiers announced 9MFY24 results:

  • Assets under Management (AUM) experienced a robust growth of 23% YoY, crossing the significant milestone of Rs 160 billion.
  • Disbursement during the quarter exhibited a strong YoY growth of 13%, reaching Rs 13.6 billion.
  • Net Profit demonstrated a solid 15% YoY growth, totaling Rs 3.48 billion for 9MFY24, driven by an impressive 18% YoY growth in Net Total Income.
  • Spread and Net Interest Margin (NIM) for the quarter stood at 5.12% and 7.94%, respectively, showcasing stability and efficiency in interest-related metrics.
  • Gross Stage 3 assets were reported at 1.09%, comprising 0.96% of assets with more than 90 days past due (DPD) and 0.13% of assets with up to 90 DPD. Net Stage 3 assets stood at 0.79%.
  • Borrowings composition indicated a well-structured mix, with 89.9% sourced from Term Loans, Assignment, and NHB Refinancing. The remaining 10.1% involved borrowings from the debt capital market, with 76.2% sourced from development finance institutions like IFC, CDC, and ADB. No borrowings were reported through Commercial Papers.
  • Net Worth demonstrated robust growth, increasing by 15% YoY to reach Rs 36,314 million as of December 31, 2023.
  • The company's branch network expanded to a total of 351 branches as of December 31, 2023, reflecting a strategic presence across regions.

Commenting on the performance Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, India is at the cusp of a decade-long growth journey. Amongst all industry sectors, housing will be a bellwether sector given its low mortgage penetration and massive urban housing shortage across geographies and income classes. Moreover, with budgetary announcement reflecting the continued government thrust for boosting ‘Housing for all’ addresses both demand and supply. The plan to build an additional 20 million houses in the next 5 years and to promote buying or building own houses under the “Rural Awas Yojana” augurs well with Aavas’s vision and mission.

Given the small space that affordable housing finance players occupy in this market, we see significant headroom to grow. We strongly believe that we can continue our momentum in serving the unserved, underserved, and underbanked customers in Tier 2 to Tier 5 markets, with a relentless focus on risk-adjusted returns.

In FY24, we are undergoing a major technology transformation to build a scalable and sustainable platform. As a result, we have seen some disruption in business momentum initially. However, now we are witnessing month-on-month improvement in disbursements resulting in 8% QoQ growth in Q3 FY24. We are confident of delivering our guidance of 20-25% YoY AUM growth in this financial year."

 

Result PDF

Housing Finance company Aavas Financiers announced FY23 results:

  • AUM of Rs 1,41,667 million; growth of 24.8% YoY (26.1% growth without the impact of subsidy)
  • Disbursements of Rs 50,245 million; growth of 39.5%
  • PAT at Rs 4,283 million; growth of 19.8% YoY
  • Gross Stage 3 at 0.92% (includes 0.11% of upto 90 DPD assets)
  • ROA at 3.51%; decreased by 7 bps YoY
  • ROE at 14.09%; increased by 37 bps YoY
  • Sufficient Liquidity of Rs 32,747 million
  • Positive ALM & Strong Capital Base
  • The total number of branches stands at 346 as of 31st March 2023

 

 

 

Result PDF

Aavas Financiers announced Q2FY23 results:

  • AUM of Rs. 125,437 million; Growth of 24% YoY
  • PAT at Rs. 1963 million; Growth of 29% YoY
  • Gross Stage 3 at 1.10% (includes 0.17% of upto 90 DPD assets)
  • ROA at 3.42%; Increased by 17 bps YoY
  • Sufficient Liquidity of Rs. 28,370 million
  • Positive ALM & Strong Capital Base

Commenting on the performance Mr. Sushil Kumar Agarwal, CEO said:

“Dear All, Wishing you all a very happy Diwali and festivity & I hope everybody keep safety and health as priority.

At Aavas we believe in consistent growth with maintaining asset quality and I am happy to share that the Company has reported a robust growth of 64% in disbursements during H1 FY23 which stood at Rs. 22,403 Mn as compared to Rs. 13,641 Mn in the same period last year. This strong growth aided to an overall AUM growth of 24%, which stood at Rs. 125,437 Mn as on 30th September 2022.

Aavas intends to invest in Technology extensively which will help the Company to further reduce turnaround time, improve productivity, enhance customer experience, improve transparency in processes and support long term growth on sustainable basis. Our long term strategy of attaining digital transformation remain on track.

Over the years the Company has strengthened its branch network to 321 branches, adding 7 branches in H1 FY23. The Company’s enhanced collections efforts coupled with its technological prowess, led to an improvement in the company’s asset quality by 22 bps from 4.67% in Jun-22 to 4.45% in Sep-22. Additionally, the Company has categorized 0.17% of assets with DPD up to 90 as Gross Stage 3 following RBI’s notification dated 12th November 2021 to harmonize IRACP norms. As a result, the total Gross Stage 3 exposure as of Sep-22 stands at 1.10% as against 0.93% in the absence of any changes in IRACP norms by RBI.

We are happy to share that the company has received a rating upgrade from CARE Ratings. The Company’s rating has been upgraded to CARE AA (outlook stable) from CARE AA- (outlook positive) similar to the rating by ICRA, which endorses Company’s strong financial profile and exhibit ability of efficient capital management.

Lastly, during the quarter, the Company has raised Rs. 9,467 Mn at a blended rate of 7.55% which will not only augment growth capital requirements but also ensure adequate liquidity. As of 30th September, the Company has healthy balance sheet liquidity of Rs. 28,370 Mn which is in the form of cash & cash equivalents and un-availed sanctions."

 

Result PDF

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