AAVAS Financiers Limited has received positive coverage from leading research houses, with Citi upgrading its target price to ₹2,100 while maintaining a Buy rating, and Jefferies setting a target of ₹1,875. The housing finance company's strong Q4FY26 performance demonstrated robust operational metrics, improved asset quality, and sustained growth momentum across key business parameters.

Research House Coverage and Valuations

Citi has upgraded its target price for AAVAS Financiers to ₹2,100 while maintaining its Buy recommendation, citing strong operational performance and improved financial metrics. The research firm highlighted the company's 16% year-on-year disbursement growth and 15% AUM expansion as key positive factors. Jefferies also maintains its positive stance with a target price of ₹1,875, noting the company's reasonable valuations at 1.5x FY27E P/B ratio.

Strong Asset Growth and Disbursement Performance

The company's financial performance for Q4FY26 and FY26 reflects sustained growth momentum across key business metrics. Citi specifically noted the 16% year-on-year disbursement growth and 15% AUM expansion as indicators of the company's strong market position.

The Assets Under Management reaching ₹235bn represents healthy growth, indicating the company's continued market penetration in the housing finance sector. The disbursement performance shows particularly strong momentum with robust annual and quarterly growth rates.

Improved Asset Quality and Financial Projections

AAVAS Financiers demonstrated significant improvement in asset quality parameters, with Citi noting the improved metrics in its analysis. The research firm projects benign credit costs of 10-12 basis points and expects Return on Assets (RoA) of 3.6% and Return on Equity (RoE) of 14.9%.

The reduction in 1+ Days Past Due (DPD) to 3.17% and Gross Stage 3 assets at 1.07% reflects the company's effective risk management practices and enhanced collection efficiency.

Business Expansion and Potential Challenges

The company continued its geographical expansion strategy by adding 31 new branches during Q4FY26, bringing the total branch count to 435 as of March 31, 2026. However, Citi noted that PLR (Prime Lending Rate) cuts may compress spreads by 8-10 basis points quarter-on-quarter, which could impact margins in the near term.

The securitization activities and successful placement of ₹5bn ICRA AAA (SO) rated Pass Through Certificates demonstrate the company's diversified funding approach and market confidence in its asset quality. AAVAS Financiers also received credit rating upgrades from both CARE and ICRA, with outlook revised from Stable to Positive while maintaining the AA credit rating.

AAVAS Financiers Limited has announced a significant change in its senior management with the early retirement of Chief People Officer Mr. Anshul Bhargava, effective from the close of business hours on April 01, 2026. The announcement was made through a regulatory disclosure filed under Regulation 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Early Retirement Details

Mr. Anshul Bhargava, aged 59.5 years, submitted his request for early retirement citing personal reasons. The executive's regular retirement was originally scheduled for November 2026, making this an early departure by approximately seven months.

Board Approval Process

The Board of Directors and the Nomination & Remuneration Committee considered and approved the early retirement request through a circular resolution passed on April 01, 2026. The approval was granted in line with the applicable procedures of the company, ensuring compliance with regulatory requirements.

The company filed the disclosure pursuant to SEBI Master circular SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, providing comprehensive details about the senior management change.

Executive's Tenure and Contributions

In his resignation letter addressed to Managing Director and CEO Sachinder Bhinder, Mr. Bhargava expressed gratitude for his tenure with the company. He described his journey as "truly wonderful and enriching" and thanked the leadership team for their trust and support.

The company has placed on record its sincere appreciation for Bhargava's valuable contributions during his tenure and wished him continued success in his future endeavours. His departure represents a notable change in the senior management structure of the financial services company.

Regulatory Compliance

The announcement demonstrates AAVAS Financiers' commitment to transparent disclosure practices. The company has made the information available on its website at www.aavas.in , ensuring stakeholder access to the development. The disclosure was filed with both NSE and BSE, maintaining compliance with listing obligations and providing timely information to investors and market participants.