Aavas Financiers (AAVAS) Q4 25/26 earnings summary

Executive summary

• Achieved record AUM of ₹234.5 billion, up 15% year-over-year, with net profit for FY26 rising 14% to ₹6,556 million and Q4FY26 PAT up 18% YoY to ₹1,817 million, driven by strong NII and improved NIMs.

• Expanded branch network to 435 across 15 states/UTs, with 80%+ in Tier 3+ towns and focus on high-potential markets like Tamil Nadu, Uttar Pradesh, and Gujarat.

• Asset quality remained robust with GNPA at 1.05% and NNPA at 0.68% as of Mar-26.

• Promoter change welcomed CVC Capital Partners; credit rating outlook upgraded to Positive by ICRA and CARE.

• Management remains committed to disciplined growth, risk management, and long-term value creation.

Financial highlights

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

• Net profit for FY26 stood at ₹65,488.13 lakh, up from ₹57,410.82 lakh in FY25; Q4 net profit grew 18% YoY to ₹1,817 million.

• NIMs improved by 29 bps YoY to 7.93% and expanded 44 bps sequentially to 8.45% in Q4; spread increased by 31 bps to 5.20%.

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

• ROA at 3.29% and ROE at 13.93% for FY26; Q4 ROA improved 13 bps to 3.5% and ROE rose 38 bps to 14.67%.

Outlook and guidance

• Aspires to deliver 20%+ AUM growth, aiming to outperform industry, with ROE targeted in high teens and spreads above 5%.

• Credit cost guidance maintained below 25 bps, with no plans to enter riskier segments.

• OpEx to AUM ratio expected to fall below 3% over 2–3 years as scale and productivity improve.

• Focus on sustainable growth, expanding branch network, and maintaining asset quality.

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