Aavas Financiers , a retail-focused affordable housing finance company, has announced its financial results for the first quarter of fiscal year 2026, showcasing steady growth and resilient performance.

Key Financial Highlights

• Net Profit: Aavas reported a net profit of Rs 1.39 billion for Q1FY26, marking a 10% year-on-year increase from Rs 1.26 billion in Q1FY25.
• Assets Under Management (AUM): The company's AUM grew by 16% year-on-year, reaching Rs 207.40 billion as of June 30, 2025.
• Disbursements: Q1FY26 disbursements stood at Rs 11.50 billion, reflecting a transition to a realization-based disbursement recognition model.
• Net Interest Margin (NIM): NIM for the quarter was 7.48%, up 17 basis points year-on-year.
• Spread: The company's spread expanded to 5.11%, an increase of 11 basis points year-on-year.

Asset Quality and Capital Adequacy

Aavas maintained a robust asset quality profile:

• Gross Stage 3 Assets: 1.22% of the loan book
• Net Stage 3 Assets: 0.84%
• Capital Adequacy Ratio: A strong 43.20% as of June 30, 2025

Operational Highlights

• Branch Network: Expanded to 397 branches across 14 states
• Active Loan Accounts: Increased by 12% year-on-year to 250,694

Management Commentary

Sachinder Bhinder, Managing Director & CEO of Aavas Financiers, commented on the results: "Q1 FY26 was a landmark quarter for Aavas, marking a pivotal moment in our journey. We successfully concluded the change in promoter process and are proud to welcome CVC Capital Partners as our new promoter."

Bhinder also highlighted the company's transition to a realization-based model for disbursement recognition, stating it reflects their intent to stay ahead of regulatory expectations.

Strategic Initiatives

The company reported progress on several strategic fronts:

• Yield Optimization: Achieved a 35 bps year-on-year improvement in yield
• Cost of Borrowing: Reduced by 22 bps quarter-on-quarter
• Technology Transformation: Reduced turnaround time from login to sanction to 6 days, down from a peak of 13 days
• Digital Initiatives: Rolled out digital agreements in 120 branches and reduced paper usage by 59%

Outlook

Aavas Financiers remains optimistic about growth prospects, citing government initiatives such as the Interest Subsidy Scheme (ISS) under PMAY 2.0 and a supportive interest rate environment as factors bolstering homebuyer sentiment and improving affordability.

The company's focus on governance, asset quality, profitability, and growth, coupled with its technological advancements, positions it well for sustainable growth in the affordable housing finance sector.

Aavas Financiers Limited has announced the appointment of Mr. Ashish Gautam as the new Head of Operations, effective August 11, 2025. This strategic move, approved by the company's Board of Directors through a Circular Resolution, aims to strengthen the senior management team of the housing finance company.

Appointment Details

The appointment of Mr. Gautam as a Senior Managerial Personnel was based on the recommendation of the Nomination and Remuneration Committee. The company disclosed this information in compliance with Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Extensive Experience

Mr. Ashish Gautam brings a wealth of experience to his new role at Aavas Financiers. With over 23 years in the Banking and Financial Services Sector, his expertise spans several critical areas:

• Operations Management
• System Implementation
• Digital transformation
• Machine learning & Automation
• Vendor Management
• Business Development
• Client Servicing
• People Management

This diverse skill set is expected to contribute significantly to Aavas Financiers' operational efficiency and strategic growth initiatives.

Company's Disclosure

Saurabh Sharma, Company Secretary and Compliance Officer of Aavas Financiers Limited, confirmed the appointment in an official communication to the National Stock Exchange of India Limited and BSE Limited. The company has also made this information available on its website under the Investor Relations section.

Looking Ahead

The appointment of Mr. Ashish Gautam as Head of Operations comes at a time when financial institutions are increasingly focusing on digital transformation and operational excellence. His extensive experience in these areas could play a crucial role in driving Aavas Financiers' future growth and operational strategies.