AAVAS FINANCIERS Q2 FY27 results: net profit up 10.7% to ₹181.52 crore, revenue up 10.4%

How did AAVAS FINANCIERS perform in Q2 FY27?

AAVAS FINANCIERS reported standalone revenue from operations of ₹736.30 crore in Q2 FY27, up 10.4% from ₹667.02 crore in Q2 FY26 and 3.9% from ₹708.72 crore in Q1 FY27. Total income was ₹736.77 crore, up ₹69.32 crore year on year. EBITDA and EBITDA margin were not reported in the results.

Profit before tax rose 11.5% to ₹235.60 crore from ₹211.23 crore in Q2 FY26, and was up ₹15.50 crore from ₹220.10 crore in Q1 FY27. After tax of ₹54.08 crore, net profit was ₹181.52 crore, up ₹17.59 crore or 10.7% year on year and ₹10.25 crore or 6.0% from the previous quarter.

Basic EPS was ₹22.89, up from ₹20.71 in Q2 FY26 and ₹21.60 in Q1 FY27. The profit margin was 24.7% in the quarter, against 24.6% a year earlier and 24.2% in the previous quarter, a rise of 0.1 percentage point and 0.5 percentage point respectively.

What changed in AAVAS FINANCIERS's costs and profit?

Total expenses rose 9.9% to ₹501.17 crore in Q2 FY27 from ₹456.22 crore in Q2 FY26, an increase of ₹44.95 crore. Finance costs were the largest increase, up ₹29.80 crore or 10.8% to ₹305.34 crore, while employee benefit expense rose ₹8.24 crore or 7.3% to ₹121.19 crore.

Depreciation, amortisation and impairment increased ₹1.46 crore or 13.6% to ₹12.17 crore, and other expenses rose ₹2.27 crore or 4.9% to ₹48.41 crore. Other income was ₹0.47 crore, up ₹0.04 crore from ₹0.43 crore in the year-ago quarter. There was no exceptional item in the quarter.

Tax expense rose 14.4% to ₹54.08 crore from ₹47.29 crore, an increase of ₹6.79 crore. Against Q1 FY27, total expenses rose ₹12.18 crore or 2.5%, with finance costs up ₹12.71 crore or 4.3% and employee benefit expense down ₹0.51 crore or 0.4%. Tax was up ₹5.24 crore or 10.7% from ₹48.84 crore.

How did the first half of FY27 go?

In H1 FY27, revenue rose 11.6% to ₹1,445.02 crore from ₹1,294.58 crore in H1 FY26, while total income increased 11.6% to ₹1,445.87 crore from ₹1,295.39 crore.

Profit before tax for the first half was ₹455.70 crore, up 16.7% from ₹390.36 crore, and net profit rose 16.4% to ₹352.79 crore from ₹303.17 crore. Basic EPS increased 16.2% to ₹44.49 from ₹38.30.

What do the balance sheet and cash flow show?

Total assets increased to ₹22,341.17 crore as on 30 September 2026 from ₹21,212.50 crore as on 31 March 2026, while total equity rose to ₹5,398.47 crore from ₹5,050.85 crore. Cash and cash equivalents stood at ₹429.12 crore, against ₹228.57 crore at the previous balance sheet date. Borrowings were not given.

In H1 FY27, operating cash flow was an outflow of ₹647.35 crore, compared with an outflow of ₹126.65 crore in H1 FY26. Investing cash flow turned to an inflow of ₹71.47 crore from an outflow of ₹175.77 crore, while financing cash flow was an inflow of ₹776.43 crore against ₹470.53 crore a year earlier. Capital expenditure was ₹13.03 crore, compared with ₹15.24 crore in H1 FY26.

How has AAVAS FINANCIERS done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis, and net profit also rose in each of the last eight quarters. Revenue increased from ₹596.74 crore in Q3 FY25 to ₹736.30 crore in Q2 FY27, while net profit moved from ₹146.42 crore to ₹181.52 crore over the same span.

The highest quarterly revenue in the series was ₹736.30 crore in Q2 FY27, and the lowest was ₹596.74 crore in Q3 FY25. Net profit reached its high of ₹181.67 crore in Q4 FY26 and its low of ₹139.23 crore in Q1 FY26. The latest quarter followed Q1 FY27 revenue of ₹708.72 crore and net profit of ₹171.27 crore. EBITDA margin was not given for the quarters in the series.

What else did the company announce?

The Board approved the unaudited financial results for the quarter and half year ended 30 September 2026 on 26 October 2026, following review by the Audit Committee, and took note of the limited review report of the joint statutory auditors. The same-day filings did not include a dividend or a fund raise.

Mrs. Soumya Rajan resigned as a Non-Executive Independent Director with effect from the close of business hours on 26 October 2026, citing increasing professional commitments at Waterfield Advisors. The Board approved the appointment of Ms. Anjali Karamnarayan Seth as an Additional Director in the capacity of Non-Executive Independent Director for five years from 27 October 2026 to 26 October 2031, subject to shareholder approval, and approved a postal ballot notice for the same.

Mr. Ramachandran Venkatesh resigned as Head of Internal Audit with effect from the close of business hours on 26 October 2026, citing personal commitments, medical issues and family exigencies. Mr. Bharat Chamanlal Thakkar was appointed Head of Internal Audit with effect from 27 October 2026 for a term of three years.

IRDAI issued a Certificate of Registration to the company dated 26 October 2026 to act as a Corporate Agent, effective from 8 December 2026 after the expiry of the earlier certificate, and the filing said the company will be able to solicit insurance products to its customers as a corporate agent.

What did AAVAS FINANCIERS's management say?

Management reaffirmed FY27 AUM growth guidance of 16%-17% and maintained its commitment to long-term disbursement growth above 20%. It said AUM was ₹248.0 billion in September, crossed ₹250 billion in October, and set out a long-term ambition of ₹500 billion.

Mr. Manu Singh, Managing Director and Chief Executive Officer, said: "We aim to improve productivity to approximately 1.5 files / month by the end of FY27 and progressively scale it to 2 files / month." He also said: "Our commitment of growing disbursements upwards of 20% stands."

Management said RO productivity reached 1.3 files per month in September and targets approximately 1.5 by the end of FY27. It targets opex-to-assets below 3% and cost-to-income below 40% over the medium term, with credit cost within 25 bps and 1+ DPD below 5%.

Mr. Singh said: "We will maintain above 5% spreads." Management expects rising rates to lift funding costs and said it expects repricing of incremental lending to support disbursement and AUM yields over coming quarters. Risks it flagged include funding repricing before a PLR reset, insurance regulation from April 2027, weather effects in select geographies, and the need to deliver growth without weakening underwriting, margins or asset quality.

How did AAVAS FINANCIERS shares react?

The results were filed after market hours on 26 October 2026. The stock was up 1.5% on the reaction day from its previous close, and the median move across other Housing Finance Company stocks was 0.3%, leaving an excess move of 1.2 percentage points. The Nifty Smallcap 250 rose 2.2% on the reaction day.

By the next day's close the stock was up 0.1% from its pre-results close, against a sector median of -0.5% and a market move of 2.5%. By the fifth session it was up 0.4% from the pre-results close, compared with a sector median of 0.9%, giving an excess move of -0.5 percentage points.

Earlier reaction-day moves were mixed: the stock fell 5.6% on 21 July 2026, fell 1.8% on 5 May 2026, fell 5.7% on 5 February 2026 and rose 5.5% on 11 November 2025. In August 2025 it fell 2.9%, and in January 2025 it rose 0.4%.

How did other Housing Finance Company companies do?

Seven other Housing Finance Company companies that have filed this quarter were compared with AAVAS FINANCIERS. Their median revenue growth was 14.6%, above AAVAS FINANCIERS' revenue growth of 10.4%.

Five peers grew faster than AAVAS FINANCIERS and two grew slower. All seven peers reported higher profit, with profit growth measured for seven companies.