Aavas Financiers (AAVAS) Q3 24/25 earnings summary

Executive summary

• Achieved 20% year-over-year AUM growth, reaching INR 192.4 billion, and 21% PAT growth to INR 4.2 billion for nine months FY25, with strong asset quality and robust digital transformation initiatives.

• Disbursements up 17% YOY in Q3 FY25 and 23% sequentially, with total income for Q3 FY25 at ₹59,791.73 lakh.

• Net profit for Q3 FY25 rose 26% YOY to INR 1.46 billion (₹14,642.29 lakh), with basic EPS for Q3 FY25 at ₹18.50.

• Technology upgrades reduced loan processing TAT by 36% and increased online disbursals to 70%, driving scale and cost optimization.

• Expanded branch network to 373 across 14 states/UTs, with six new branches in nine months FY25 and plans for 20+ more.

Financial highlights

• Net worth compounded at 16% YOY to ₹41.97 billion; capital adequacy ratio at 45.56%.

• NIM at 7.54–7.75% in Q3 FY25; spreads above 5%; ROA improved 4 bps to 3.26%.

• Cost of borrowing increased to 8.24–8.41% in nine months FY25; raised INR 46.2 billion at 8.41%.

• Gross NPA at 1.14%, net NPA at 0.81%, provision coverage ratio at 57.23%.

• Book value per share increased to ₹530.3; diluted EPS for nine months FY25 at ₹53.0.

Outlook and guidance

• Confident in delivering 20–25% AUM growth, supported by strong Q3 and January traction.

• Focus on tech-led growth, cost optimization, and operating leverage as part of Aavas 3.0 strategy.

• Targeting scalable, sustainable growth with continued digital investments and risk management enhancements.

• Plans to reach INR 500 billion AUM in 4–5 years and expand as a pan-India player.

• No material deviation in the use of proceeds from NCD issues; funds used as per stated objectives.