Aavas Financiers (AAVAS) Q3 25/26 earnings summary

Executive summary

• Achieved a balance sheet size exceeding INR 20,000 crore, with AUM reaching ₹222.04 bn as of Dec 2025, reflecting a 15.4% YoY increase and robust business growth.

• Net profit after tax for 9MFY26 was ₹4,739 mn, up 13% YoY, with a strong retail loan focus and a wide distribution network of 404 branches across 15 states/UTs.

• Raised INR 975 crore via the largest NCD placement in company history, supporting affordable housing and MSME lending.

• Implemented technology transformation, digital processes, and analytics, improving operational efficiency and customer experience.

• Board approved unaudited financial results for the quarter and nine months ended December 31, 2025, and noted the limited review report from joint statutory auditors.

Financial highlights

• AUM grew 15.4% YoY to ₹222.04 bn; Q3 FY26 net profit rose 16% YoY to ₹1,703 mn; NII up 17% YoY.

• NIM expanded to 8.01% in Q3; spread improved to 5.34% YoY.

• Cost-to-income ratio declined to 42.9%; OpEx-to-asset ratio improved to 3.44%.

• Total income for the quarter ended December 31, 2025, was ₹67,461.62 lakh, up from ₹59,791.73 lakh YoY.

• Raised INR 15.41 billion in Q3 at 7.78% average cost; total borrowings at INR 193 billion.

Outlook and guidance

• Targeting 25% disbursement growth and 17-18% loan book growth for FY27, with plans to add 50 branches and focus on deeper penetration in Tier 2/3 towns and new states.

• Confident in maintaining spreads above 5% and expect further OpEx-to-asset ratio improvement and sustainable ROE growth.

• Management emphasizes continued focus on affordable housing finance, digital transformation, and expanding branch network.

• No material deviation in the use of proceeds from Non-Convertible Debentures; all funds used as per stated objectives.

• Board and audit committee reviewed and confirmed compliance with regulatory requirements.