Aavas Financiers - Results for Q1 - F.Y. 25-26

Aavas Financiers - Results for Q1 - F.Y. 25-26 -

Housing Finance company Aavas Financiers announced Q1FY26 results 1) Assets under Management (AuM) of the company registered a growth of 16% to reach 207.4 billion as on 30 June 2025. 2) Disbursements during Q1FY26 stood at Rs 11.5 billion, factoring a one-time impact of transitioning to a realisation basis disbursement recognition model. 3) Net profit for Q1FY26 grew by 10% YoY to Rs 1.39 billion, led by a robust 14% YoY growth in Net Interest Income. 4) Opex to Assets ratio saw a decline of 25 bps QoQ in Q1FY26 at 3.46%, whereas on a YoY basis, there is an increase of 19 bps on account of the increase in ESOP costs. 5) Spread during the quarter expanded by 22 bps sequentially to 5.11% as AuM yield remained stable at 13.13% and our cost of borrowing declined to 8.02%. 6) NIM in absolute terms has increased by 16% YoY in Q1FY26, while NIM as a percentage of total assets during Q1FY26 stood at 7.48% up 17 bps YoY. 7) Asset quality continues to be pristine, within the guided range, with 1+ DPD well below 5% at 4.15% in Q1FY25, and Gross Stage 3 & Net Stage 3 stood at 1.22% and 0.84% respectively. Credit cost during Q1FY26 was 24 bps impacted by seasonality. 8) In terms of the borrowing mix, 49% of our borrowings are from Term Loans, 25% from Assignment, 14% from NHB Refinancing, 11% from the debt capital market. 9) Net Worth grew by 16% YoY to Rs. 45.1 billion as on 30 June 2025. 10) ROA stood at 2.94% and ROE stood at 12.56% in Q1FY26. 11) The total number of branches stands at 397 as on 30 June 2025. Overall results are stable. However this is for information. This is not a buy/sell recommendation. Thank you, Technofunda24