Aavas Financiers Limited has informed the Exchange about Transcript of the Earnings Conference Call for the Quarter ended June 30, 2025.
AAVAS · price
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Awaiting price reaction for this filing.
Aavas Financiers reported Q1FY26 AUM of Rs. 207 bn, up 16% Y-o-Y, with net profit of Rs. 1.4 bn (up 10% Y-o-Y) and NII growth of 16% on the back of improved spreads. The company adopted a new realization-based disbursement recognition model, which depressed Q1 disbursements, though July run rate normalized to Rs. 550-600 crore range with 16% Y-o-Y growth. Asset quality remained healthy with GNPA at 1.22% and 1+ DPD at 4.15%, though some seasonal uptick was seen in Maharashtra, MP, and Karnataka in the sub-Rs. 5 lakh ticket segment. Cost of borrowing declined 22 bps Q-o-Q to 8.02%, and NIMs expanded 16 bps to 7.48%. The company completed its change in promoter process with CVC Capital Partners becoming the new promoter. Management guided for 18-20% AUM growth for FY26 and reiterated keeping credit costs below 25 bps.
Positive for shareholders — new institutional promoter (CVC), consistent AUM and profit growth, expanding margins, and a clear FY26 growth guidance of 18-20% signal confidence. Near-term watch points are localized asset quality stress in select geographies and the accounting change's effect on quarterly comparability.