Aavas Financiers (AAVAS) Q1 24/25 earnings summary

Executive summary

• Achieved 22% year-over-year AUM growth, reaching INR 178.41 billion in Q1 FY2025, with net profit up 15% to INR 1.26 billion, and asset quality remaining strong (Gross NPA/Stage 3 at 1.01%).

• Disbursements for the quarter were INR 12.11 billion, up 13% year-over-year, with a sanction growth of 25%.

• Branch network expanded to 371 across 13 states/UTs, with four new branches opened in Q1 FY2025.

• Technology transformation advanced with Salesforce and Oracle ERP adoption, improving turnaround time to 8 days.

• Unaudited standalone financial results for Q1 FY25 were approved by the Board and reviewed by statutory auditors, with no material misstatements identified.

Financial highlights

• Revenue from operations for Q1 FY25 was ₹54,238.83 lakh, up from ₹46,681.19 lakh in Q1 FY24.

• Net profit after tax for the quarter was ₹12,610.07 lakh, compared to ₹10,971.09 lakh in Q1 FY24.

• NIM for Q1 FY25 was 8.00%, with ROA at 3.01% and ROE at 13.14%.

• Gross NPA/Stage 3 at 1.01%, Net NPA/Stage 3 at 0.68–0.72% as of June 2024.

• Basic and diluted EPS for the quarter were ₹15.93 and ₹15.92, respectively.

Outlook and guidance

• Confident in maintaining 20–25% AUM growth for FY2025, supported by strong sanction and login momentum.

• Focus remains on technology-driven growth, cost optimization, and operating leverage as part of the Aavas 3.0 strategy.

• Expect sanction to disbursement ratio to normalize to 85–87% in coming quarters.