Aavas Financiers (AAVAS) Q1 24/25 earnings summary

Executive summary

• Achieved 22% year-over-year AUM growth to INR 178.41 billion (₹178,415 Mn), with disbursements up 13% to INR 12.11 billion (₹12,109 Mn) for Q1 FY25.

• Net profit for Q1 FY25 was INR 1.26 billion (₹1,261 Mn), up 15% YoY, with NIM improving to 8.00%.

• Maintained strong asset quality with Gross NPA at 1.01% and Net NPA at 0.68% as of June 2024.

• Expanded branch network to 371 across 13 states/UTs, opening four new branches in the quarter.

• Technology upgrades included Salesforce adoption, Oracle Fusion ERP stabilization, and ongoing Oracle Flexcube LMS testing.

Financial highlights

• Revenue from operations for Q1 FY25 was ₹54,238.83 lakh, up from ₹46,681.19 lakh in Q1 FY24.

• Net profit grew 15% YoY to INR 1.26 billion (₹1,261 Mn) for Q1 FY25.

• AUM reached INR 178.41 billion (₹178,415 Mn), up 22% YoY.

• Disbursements totaled INR 12.11 billion (₹12,109 Mn), up 13% YoY.

• NIM stood at 8.00% for Q1 FY25.

Outlook and guidance

• Confident in maintaining 20–25% AUM growth for FY2025, supported by strong sanction and login momentum.

• Focus on scaling and institutionalization with tech-led growth, cost optimization, and operating leverage.

• Continued investment in digital transformation to enhance customer experience and operational efficiency.