Key Financial Metrics for H1FY27 (₹ millions)

Comparative Performance:

  • Disbursements: ₹35,051 (H1FY27) vs ₹27,053 (H1FY26) - 29.6% YoY growth
  • Assets under Management (AuM): ₹248,011 vs ₹213,566 - 16.1% YoY growth
  • Net Interest Income: ₹6,825 vs ₹5,851 - 16.7% YoY growth
  • Operating Profit: ₹4,819 vs ₹4,096 - 17.7% YoY growth
  • Net Profit: ₹3,528 vs ₹3,032 - 16.4% YoY growth
  • Net Worth: ₹53,985 vs ₹46,799 - 15.4% YoY growth

Ratios and Asset Quality:

  • Cost to Income: 42.95% (improved 195 bps from 44.90% in H1FY26)
  • GNPA: 1.11% (improved 13 bps from 1.24%)
  • 1+ DPD: 3.81% (improved 18 bps from 3.99%)
  • Net NPA: 0.70% (improved 16 bps YoY)
  • NIM: 7.76% (moderated 5 bps YoY)
  • Operating expense-to-assets ratio: 3.33% (improved 18 bps YoY)
  • Active Loan Accounts: 282,707 vs 255,696 - 11% growth

Q2FY27 Specific Performance

  • Disbursements: ₹18.9 billion (21% YoY growth)
  • NIM: 7.81% (improved 11 bps QoQ)
  • Borrowing costs: 7.64% (remained stable sequentially)
  • Credit costs: 24 bps (stable, within guided range)
  • RoA: 3.28% (improved 9 bps QoQ)
  • RoE: 13.63% (improved 28 bps QoQ)
  • 1+ DPD: 3.76% (improved 18 bps YoY)

Operational and Strategic Updates

Funding and Liability Management:

  • Strengthened and diversified funding franchise with addition of two new large relationships
  • Maintained borrowing costs at 7.64% despite volatile interest rate environment
  • Expect appropriate repricing of incremental lending following recent 25-bps repo-rate increase

Distribution Expansion:

  • Branch network expanded to 443 branches across 15 states
  • Added 21,500+ new customers in H1FY27
  • Total customers served: nearly 450,000

Asset Quality Management:

  • Repayment rate normalized to around 17% and expected to remain in similar range
  • All key asset quality indicators trending positively and within guided range

Management Commentary

CEO Manu Singh stated that Aavas will cross ₹250 billion in AUM this month and outlined ambition to reach ₹500 billion AUM. The company aims for more than 20% growth over the long term with focus on:

  • Sustainable profitability
  • Prudent underwriting
  • Strong governance
  • Disciplined liability management
  • Technology as force multiplier