Aavas Financiers (AAVAS) Q4 24/25 earnings summary

Executive summary

• Achieved 18% YoY AUM growth to ₹204.2 billion and 17% PAT growth to ₹5.74 billion for FY25, with audited results confirming continued revenue and profitability growth.

• Maintained strong asset quality with Gross NPA at 1.08% and Net NPA at 0.73% as of March 2025.

• Expanded branch network to 397 across 14 states/UTs, supporting diversified growth and completed major technology upgrades.

• Upheld robust governance and ESG standards, with improved ESG risk scores and dissolution of the only subsidiary.

• Board authorized issuance of NCDs up to ₹8,500 crore, subject to shareholder approval.

Financial highlights

• AUM rose 18% YoY to ₹204,202 million; disbursements up 10% to ₹61,230 million; net profit for FY25 at ₹5,743 million, up 17% YoY.

• NIM at 7.64% for FY25; spread improved to 5.87% in Q4 FY25; OPEX to asset ratio reduced to 3.32%.

• ROA stable at 3.27% for FY25; ROE at 14.12%; EPS (diluted) at ₹72.0.

• Book value per share increased to ₹550.9 as of March 2025.

• Total income for FY25 was ₹2,35,841.50 lakh, with net profit margin at 24.34%.

Outlook and guidance

• Targeting 20%+ disbursement and AUM growth in FY26, with focus on risk-adjusted returns, technology, and branch expansion.

• OPEX to AUM expected to save 10-20 bps in FY26 due to tech transformation and scale.

• Confident in maintaining credit costs below 25 bps and GNPA below 1% in the next 1-2 quarters.

• Committed to further digital transformation and near-paperless operations.

• Sustained emphasis on ESG and responsible lending practices.