Transcript of Earnings Conference Call for the Quarter and Financial Year ended March 31, 2026
AAVAS · price
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AAVAS Financiers reported a strong Q4FY26 with net profit growing 18% to Rs. 1.82 billion. AUM stood at Rs. 234.5 billion with 15% YoY growth, while NIM expanded by 44 bps sequentially to 8.45%. Asset quality remained pristine with GNPA at 1.05% and 1+ DPD at 3.17%. The company welcomed new CEO Manu Singh, who articulated an aspirational target of 20%+ AUM growth and ROE in high teens. Management guided for credit costs below 25 bps sustainably and opex to AUM below 3% over 2-3 years. The company raised Rs. 975 crore (USD 108 million) from a multinational institution, the largest NCD placement in its history. Branch network expanded to 435 across 15 states, with focus on South India, Gujarat, and UP. Management emphasized risk-adjusted pricing improvement and rebuilding direct sourcing muscle without increasing credit risk.
The new CEO's growth-oriented strategy with 20%+ AUM target and focus on operational efficiency signals an inflection point for the company after two years of sub-20% growth. The pristine asset quality maintained even during expansion is positive for risk-conscious investors, while the margin guidance provides visibility on profitability trajectory.