Aavas Financiers , a retail-focused affordable housing finance company, has reported significant growth in its Assets Under Management (AUM) and profitability, demonstrating continued expansion in its core business segments.

Financial Highlights

• Assets Under Management (AUM) reached ₹17,887.00 crores, marking a 19.00% year-over-year growth.
• Profit After Tax (PAT) increased to ₹347.00 crores, representing a 14.00% rise compared to the previous year.
• The company is targeting a 20.00-22.00% AUM compound annual growth rate (CAGR).

Key Performance Metrics

• Gross Non-Performing Assets (GNPA) remained below 1.00%.
• Net Non-Performing Assets (NNPA) were maintained below 0.60%.

Business Strategy and Expansion Plans

Aavas Financiers continues to focus on its core segments:

• The company maintains a strong emphasis on affordable housing in Tier-3 and Tier-4 cities.
• Plans are in place to expand the branch network to over 470 branches.
• Strengthening digital lending capabilities, co-lending partnerships, and AI-based underwriting systems are key priorities.

Management Focus

The management emphasized:

• Continued focus on cost efficiency.
• Efforts to preserve margins amid the high interest rate environment.

Market Position

Aavas Financiers is strategically positioning itself in the affordable housing finance market:

• The company's focus on Tier-3 and Tier-4 cities aligns with the growing demand for affordable housing in these areas.
• By expanding its branch network and enhancing digital capabilities, Aavas aims to capture a larger market share.

As the demand for affordable housing finance remains robust in India, Aavas Financiers appears well-positioned to capitalize on market opportunities while maintaining its focus on asset quality and operational efficiency. The company's growth in AUM and profitability, coupled with its strategic focus on underserved markets, suggests a positive outlook for its performance.

Aavas Financiers Limited , a prominent housing finance company, has received shareholder approval for several key initiatives during its 15th Annual General Meeting (AGM) held on September 16, 2025. The company, which focuses on home loans and MSME financing for rural and semi-urban customers, has secured backing for significant financial and operational decisions.

NCD Issuance Approved

Shareholders have given the nod to raise up to ₹8,500.00 crore through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis. This fundraising initiative is set to take place over the next year, concluding by September 15, 2026. The approval allows for the issuance of NCDs in one or more tranches, including subordinate debentures, bonds, and other debt securities.

New ESOP Plan Introduced

The AGM also saw the approval of the 'Aavas Financiers Limited – Equity Stock Option Plan 2025' (ESOP-2025). This new plan encompasses a total of 23,74,191 exercisable options, each representing one equity share with a face value of ₹10.00.

Board Composition and Remuneration Changes

Several changes to the company's board composition were approved:

• Appointment of five Non-Executive Nominee Directors for five-year terms:

  1. Mr. Elcid Vergara
  2. Mr. Anant Jain
  3. Mr. Nikhil Omprakash Gahrotra
  4. Mrs. Neha Sureka
  5. Mr. Siddharth Tapaswin Patel

• Revision in the remuneration of Mr. Sachinderpalsingh Jitendrasingh Bhinder, Managing Director & Chief Executive Officer

Other Key Approvals

• Appointment of M/s. Chandrasekaran Associates as Secretarial Auditors for a five-year term from FY 2025-26 to FY 2029-30
• Increase in borrowing powers under Section 180(1)(c) of the Companies Act, 2013
• Creation of charges on company assets to secure borrowings under Section 180(1)(a) of the Companies Act, 2013

Market Performance

As of the latest available information, Aavas Financiers' shares closed at ₹1,649.40, reflecting a 11.30% decline over a six-month period.

These strategic decisions aim to strengthen Aavas Financiers' financial position and operational capabilities as it continues to serve its target market in rural and semi-urban areas of India.