Aavas Financiers (AAVAS) Q4 25/26 earnings summary

Executive summary

• Achieved record AUM of ₹234.5 billion, up 15% YoY, with net worth exceeding ₹50 billion and lifetime disbursements crossing ₹409 billion, serving 400,000 customers.

• Net profit for FY26 rose 14% to ₹6,556 million, with Q4FY26 PAT up 18% YoY to ₹1,817 million, driven by strong NII and improved NIM.

• Expanded to 435 branches across 15 states/UTs, with 80%+ in Tier 3+ towns and focus on high-potential markets.

• Credit rating outlook upgraded to Positive by ICRA and CARE; welcomed CVC Capital Partners as new promoters.

• Audited FY26 results approved; board authorized issuance of up to ₹9,000 crore in NCDs.

Financial highlights

• FY26 AUM grew 15% YoY to ₹234.5 billion; annual disbursements up 11% to ₹67.8 billion.

• Q4 net profit grew 18% YoY to ₹1.82 billion, driven by 17% YoY NII growth and improved NIMs.

• NIMs expanded 44 bps sequentially to 8.45% in Q4; full-year NIMs up 29 bps to 7.93%.

• Net worth crossed ₹50.5 billion, up 16% YoY.

• Basic EPS for FY26 was ₹82.72, up from ₹72.54 in FY25.

Outlook and guidance

• Aspires to deliver 20%+ AUM growth, aiming to outperform industry and maintain high-teen ROE.

• Focused on sharp execution, optimizing product mix, channel composition, and geographic expansion.

• Continued investment in technology and digital transformation to drive operational efficiency.

• Guidance to keep credit costs below 25 bps on a sustainable basis; OpEx to AUM ratio expected to fall below 3% over 2–3 years.

• Commitment to green housing with 300+ certified Green Homes added in FY26.