Aavas Financiers (AAVAS) Q3 25/26 earnings summary

Executive summary

• Achieved a balance sheet size exceeding INR 20,000 crore, with AUM reaching ₹222.04 bn as of Dec 2025, reflecting a 15.4% YoY increase and robust business growth.

• Net profit after tax for Q3FY26 was ₹1,703 mn, up 16% YoY, and for 9MFY26 was ₹4,739 mn, up 13% YoY, with a strong retail loan focus and a wide distribution network.

• Raised INR 975 crore via the largest NCD placement in company history, supporting affordable housing and MSME lending.

• Continued investment in technology transformation, digital processes, and analytics, resulting in improved operational efficiency and customer experience.

• Macro environment, including government reforms and stable funding, remains supportive for housing finance.

Financial highlights

• AUM grew 15.4% YoY to ₹222.04 bn as of Dec 2025; Q3FY26 net profit rose 16% YoY to ₹1,703 mn, with NII up 17% YoY.

• Net worth increased 16% YoY to ₹48.6 bn; cost-to-income ratio improved to 42.9% and opex-to-asset ratio to 3.44%.

• NIM expanded to 8.01% in Q3FY26; spread improved to 5.34% YoY.

• Gross NPA and Net NPA remained low at 1.19% and 0.79% as of Dec 2025.

• ROA at 3.43% and ROE at 14.29% for Q3FY26.

Outlook and guidance

• Targeting 25% disbursement growth and 17-18% loan book growth for FY27, with plans to add 50 branches and focus on Tier 2/3 cities and new states.

• Confident in maintaining spreads above 5%, with guidance of 5.20%-5.25% in coming quarters.

• Management emphasizes continued focus on affordable housing finance, digital transformation, and operational excellence.

• Strong liquidity position and diversified funding base support future growth plans.

• Board and audit committee reviewed and confirmed compliance with regulatory requirements.