Aavas Financiers Reports Q1 FY27 Results: Net Profit Jumps 23% as AUM Reaches Rs 239 Billion

Aavas Financiers Reports Q1 FY27 Results: Net Profit Jumps 23% as AUM Reaches Rs 239 Billion​

Aavas Financiers Limited has announced its unaudited financial results for the quarter ending June 30, 2026. The company reported robust growth across key metrics, with Assets under Management (AUM) growing 15.4% year-on-year (YoY) to reach Rs 239 billion. Net profit saw a strong increase of 23% YoY, reaching Rs 1.71 billion.

The results highlight sustained performance in asset quality and operational efficiency. The company maintained disciplined underwriting standards while expanding its portfolio.

Key financial highlights for Q1 FY27 include:

• Assets under Management (AUM): Rs 239 bn (up 15.4% YoY)
• Net Profit (PAT): Rs 1.71 bn (up 23% YoY)
• Net Interest Margin (NIM): 7.70% (Improved by 22 bps)
• Net NPA: 0.71%
• Cost to Income ratio: 43.7%

Operational and Financial Metrics Snapshot​

The table below provides a detailed look at the company's performance metrics for Q1 FY27 compared to Q1 FY26.

Performance Highlights and Management Commentary​

Aavas Financiers reported that the Q1 FY27 performance was marked by strong volume growth and improved profitability. The company disbursed loans worth Rs 16.1 billion during the quarter, representing a robust 41% YoY growth.

Management noted several areas of strength:

• Profitability: Net profit grew by 23% YoY to Rs 1.71 billion, driven by a strong 18% YoY growth in Net Interest Income (NII).
• Efficiency: The cost-to-income ratio improved significantly by 254 basis points (bps) YoY to 43.7%, attributed to better cost efficiency. Correspondingly, the operating expense-to-assets ratio improved by 9 bps YoY to 3.37%.
• Asset Quality: Asset quality remains pristine. The company reported that 1+ DPD improved by 39 bps YoY to 3.76%, staying below the 5% threshold. Gross NPA improved by 11 bps YoY to 1.11%, while Net NPA improved by 13 bps YoY to 0.71%.
• Capital Strength: Net Worth continues its steady compound growth, increasing at 16% YoY, supported by internal accruals. Return on Assets (ROA) improved by 25 bps YoY to 3.19%, and Return on Equity (ROE) improved by 78 bps YoY to 13.34%.

Mr. Manu Singh, Chief Executive Officer, commented that Q1 FY27 was a significant milestone, reflecting increased accountability and sharper execution across the organization. He highlighted that AUM growth of 15.4% enabled the company to achieve in three months what previously took close to five months.

The CEO also stated that the NIM expanded by 22 bps YoY to 7.70%, noting that effective cost management helped offset a volatile interest rate environment. The company further noted that it expanded its branch network to 440 across 15 states and remains committed to continued investment in branch expansion.

About Aavas Financiers Limited​

Aavas Financiers Limited, established in 2011 in Jaipur, operates as a retail housing finance company focused on low- and middle-income self-employed customers in semi-urban and rural areas across India who often lack access to formal banking credit. The Company's offerings include home loans for property purchase or construction, loan against property, and MSME loans.

AAVAS Stock Price Movement​

Shares of Aavas Financiers Limited gained 1.77% today, settling in the closed market at ₹1521.7. The stock was traded on 75,525 shares, with its final price finding a comfortable position between the intraday low of ₹1483 and the high of ₹1529.9.