Aavas Financiers Limited reported a 23% year-on-year increase in net profit to ₹1,713 mn for the quarter ended June 30, 2026, driven by robust growth in Assets under Management (AUM) and improved operational efficiency. Net Interest Income (NII) grew by 18% to ₹4,139 mn, while the Net Interest Margin (NIM) expanded by 22 basis points to 7.70%. The board approved the unaudited financial results at its meeting held on July 21, 2026.

Financial Performance

Total income rose to ₹7,091 mn from ₹6,279 mn in the corresponding period of the previous year, while total expenses increased to ₹4,890 mn. Profit before tax for the period stood at ₹2,201 mn, up from ₹1,791 mn in the same quarter last year. The company's earnings per share (EPS) on a diluted basis increased to ₹21.5 from ₹17.5 in the prior year period. The following table summarises the key financial metrics for the quarter:

Operational Metrics and Asset Quality

The housing finance company improved its asset quality metrics, with the Gross Non-Performing Assets (GNPA) ratio declining to 1.11% and Net Non-Performing Assets (NNPA) at 0.71%. The 1+ Days Past Due (DPD) improved by 39 basis points to 3.76%. The cost-to-income ratio improved by 254 basis points to 43.7%, reflecting better cost efficiency. The Capital Risk Adequacy Ratio (CRAR) remained strong at 44.66%.

Growth and Disbursements

AUM grew by 15.4% year-on-year to ₹23,930 crore as of June 30, 2026. The company disbursed loans worth ₹1,610 mn during the quarter, a robust increase of 41% compared to the same period last year. Net Worth grew by 15.7% to ₹5,220 crore, driven by internal accruals. The Return on Assets (ROA) improved to 3.19% and Return on Equity (ROE) improved to 13.34%.

Aavas Financiers has approved the issuance of Non-Convertible Debentures (NCDs) amounting to ₹200 crore through a private placement basis to raise capital. The Executive Committee of the Board of Directors sanctioned the issuance of up to 20,000 Senior, Secured, Rated, Listed, Transferable, Redeemable NCDs. Each debenture carries a face value of ₹1,00,000, aggregating to a nominal value of ₹2,00,00,00,000.

The approval was granted during a meeting held on July 21, 2026, exercising authority delegated by the Board on April 24, 2025, and within limits approved by shareholders via a Special Resolution on September 16, 2025. The issuance complies with the Companies Act, 2013, SEBI (LODR) Regulations, and SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021.

The NCDs will be listed on the Wholesale Debt Market (WDM) segment of BSE Limited. The tenor of the instrument is set at 3 years, maturing 36 months from the deemed date of allotment. Specific details regarding the coupon rate and the exact date of allotment will be outlined in the Key Information Document (KID).

Interest payments are scheduled to be made annually from the deemed date of allotment, while principal repayment will occur at maturity. The security structure includes a first-ranking exclusive charge covering at least 100% of the principal amount and accrued interest. This charge is created via hypothecation over identified receivables, loans, book debts, and unencumbered fixed deposits as specified in the transaction documents.

Key Details of the NCD Issue