Aavas Financiers (AAVAS) investor relations material

Executive summary

• Q1 FY 2027 saw a 41% YoY increase in loan disbursements to ₹16.1 bn, with the home loan segment up 38% YoY and AUM rising 15.4% YoY to ₹239.3 bn.

• Net profit rose 23% YoY to ₹1.71 bn, supported by 18% YoY NII growth, improved NIMs, and better opex ratios.

• Asset quality remained strong, with GNPA at 1.11% and NNPA at 0.71%, both improving YoY.

• Branch network expanded to 440 locations across 15 states/UTs, covering 2,600+ towns.

• Unaudited Q1 FY27 results were approved by the Board and reviewed by auditors, confirming compliance with regulatory standards.

Financial highlights

• Loan disbursements reached INR 16.1 billion, up 41% YoY; AUM grew 15.4% YoY to INR 239.3 billion.

• Net profit after tax for Q1 FY27 was ₹1,713 mn, up 23% YoY; EPS (diluted, non-annualized) increased 23.3% YoY to 21.5.

• NIM improved by 22 bps YoY to 7.70%; cost-to-income ratio improved by 254 bps YoY to 43.7%.

• Operating cost to assets ratio improved by 9 bps YoY to 3.37%.

• Net profit margin for Q1 FY27 was 24.15%.

Outlook and guidance

• Management targets 22%-23% disbursement growth and 17%-18% AUM growth for FY 2027, with medium-term AUM growth guidance at 20%.

• Focus on accelerating customer acquisition, productivity, and branch profitability, while maintaining stable ROA and ROE despite expected spread compression.

• Continued emphasis on execution discipline, governance, and sustainable housing initiatives.