Aavas Financiers Ltd. , a retail-focused affordable housing finance company, witnessed a significant block trade on the National Stock Exchange (NSE) amidst the release of its robust Q1 financial results.

Block Trade Details

Approximately 410,354 shares of Aavas Financiers changed hands in a block deal on the NSE. The transaction was executed at a price of Rs. 1,717.90 per share, amounting to a total value of Rs. 70.49 crores.

Q1 Financial Highlights

The block trade coincides with Aavas Financiers' announcement of strong financial performance for the first quarter:

Asset Quality and Operational Efficiency

Aavas Financiers maintained its focus on asset quality and operational efficiency:

Strategic Developments

The company highlighted several key strategic developments:

1. Change in Promoter: CVC Capital Partners became the new promoter, acquiring a 48.96% stake in Aavas Financiers.
2. Technological Transformation: Implemented significant tech upgrades, reducing loan sanction turnaround time to 6 days from a previous peak of 13 days.
3. Expansion: Increased its branch network to 397 across 14 states, focusing on contiguous growth in both core and emerging markets.

Management Commentary

Sachinder Bhinder, Managing Director & CEO of Aavas Financiers, commented on the results: "Q1 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. Their global perspective, institutional depth, and strategic insight position Aavas to accelerate into its next phase of growth and innovation."

Bhinder also highlighted the company's transition to a realization-based model for disbursement recognition, emphasizing Aavas' commitment to governance and transparency.

Market Position and Future Outlook

With a strong capital adequacy ratio of 43.20% and a robust liquidity position, Aavas Financiers appears well-positioned for sustained growth in the affordable housing finance sector. The company's focus on technology-driven operations and strategic expansion initiatives are expected to drive future performance and shareholder value.

As the affordable housing segment continues to benefit from government initiatives and improving homebuyer sentiment, Aavas Financiers aims to capitalize on these opportunities while maintaining its commitment to asset quality and profitability.

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.