Aavas H1FY27 PAT at ₹3.5bn, AUM ₹248bn

Document Metadata

Ref. No.: AAVAS/SEC/2026-27/3378

Financial Performance Highlights - H1FY27

Profit After Tax (PAT): ₹3,521 mn
Return on Assets (ROA): 3.23%
Return on Equity (ROE): 13.48%
Gross NPA: 1.11%
Net NPA: 0.70%
Yield: 12.66%
Cost of Borrowing (CoB): 7.64%
Spread: 5.02%
Net Interest Margin (NIM): 7.76%
Cost-to-Income Ratio (C/I): 42.9%
Opex Ratio: 3.33%

Quarterly Financial Performance (Q2FY27)

Interest Income on Loans: ₹6,501.9 mn (12.6% YoY growth)
Non-Interest Income: ₹363.7 mn (7.9% YoY growth)
Interest Expense: ₹3,059.6 mn (9.9% YoY growth)
Net Total Income (NIM): ₹4,308.1 mn (10.8% YoY growth)
Operating Expenses: ₹1,817.7 mn (7.1% YoY growth)
Pre-provisioning Operating Profit (PPoP): ₹2,490.4 mn (13.6% YoY growth)
Credit Costs: ₹134.4 mn (68.8% YoY growth)
Profit Before Tax: ₹2,356.0 mn (11.5% YoY growth)
Provision for Taxation: ₹540.8 mn (14.3% YoY growth)
Profit After Tax: ₹1,815.2 mn (10.7% YoY growth)
Total Comprehensive Income: ₹1,808.5 mn (10.0% YoY growth)
EPS (Diluted): ₹22.8 (10.9% YoY growth)

Half-Yearly Financial Performance (H1FY27)

Interest Income on Loans: ₹12,837.0 mn (12.9% YoY growth)
Non-Interest Income: ₹694.8 mn (6.5% YoY growth)
Interest Expense: ₹6,011.7 mn (8.9% YoY growth)
Net Total Income (NIM): ₹8,447.0 mn (13.6% YoY growth)
Operating Expenses: ₹3,627.6 mn (8.7% YoY growth)
Pre-provisioning Operating Profit (PPoP): ₹4,819.4 mn (17.7% YoY growth)
Credit Costs: ₹262.3 mn (36.5% YoY growth)
Profit Before Tax: ₹4,557.0 mn (16.7% YoY growth)
Provision for Taxation: ₹1,029.2 mn (18.0% YoY growth)
Profit After Tax: ₹3,527.9 mn (16.4% YoY growth)
Total Comprehensive Income: ₹3,521.2 mn (16.0% YoY growth)
EPS (Diluted): ₹44.3 (16.6% YoY growth)

Balance Sheet Position (as of September 30, 2026)

Total Sources of Funds: ₹223,412 mn
Share Capital: ₹793 mn
Reserves & Surplus: ₹53,192 mn
Borrowings: ₹164,854 mn
Deferred Tax Liability (Net): ₹1,040 mn
Other Liabilities & Provisions: ₹3,533 mn

Total Application of Funds: ₹223,412 mn
Loan Assets: ₹193,207 mn
Investments: ₹3,444 mn
Fixed Assets: ₹927 mn
Liquid Assets: ₹19,003 mn
Other Assets: ₹6,831 mn

Asset Quality and ECL Provisioning

As of September 30, 2026:

Gross Loan Principal Outstanding: ₹194,731 mn
Stage 1: ₹189,773 mn (97.45% of portfolio)
Stage 2: ₹2,788 mn (1.43% of portfolio)
Stage 3: ₹2,170 mn (1.11% of portfolio)
ECL Provision Amount: ₹1,524 mn (0.75% of portfolio)
Stage 1: ₹411 mn (0.20% provision)
Stage 2: ₹286 mn (9.76% provision)
Stage 3: ₹827 mn (36.80% provision)

Business Operations and Metrics

AUM: ₹248.0 bn (16.1% YoY growth)
Disbursement (H1FY27): ₹35.1 bn (30% YoY growth)
Net Worth: ₹54.0 bn
CRAR: 43.77%
Incremental Borrowings: ₹31.5 bn at 7.70% rate
Number of Lenders: 35+
Credit Rating: AA Long term ratings

Customer and Distribution Metrics

Retail Loans: 99.6% of portfolio
Self-Employed: 62%
Salaried: 38%
New Customers Added: 21,500+
Active Loan Counts: 2,82,707
Families Served: 4,45,000+
Ticket Size: 83% below ₹15 lakhs
Average Ticket Size on AUM: ₹1.0 mn
Loan Type Mix: 63% Housing Loan (HL), 37% Non-housing Loan (NHL)
Average LTV: 55.4%
Floating Rate Assets: 72%

Distribution Network

Branches: 443
States/UTs Covered: 15
Districts Covered: 260+
Towns Covered: 7,549
Employees: 2,600+
Branch in Tier 3+: 80%+

Management Commentary

The company will surpass ₹250 billion in AUM milestone this month, having served nearly 4.5 lakh customers. The next milestone is ₹500 bn in AUM, with focus on quality of growth, sustainable profitability, strong governance, and disciplined liability management. Technology will serve as a critical force multiplier. The team has been bolstered with experienced professionals.

Disbursement momentum continued in Q2FY27 with close to ₹19 bn, growing 21% YoY, supported by improving productivity and healthy demand. Repayment rate normalized to around 17% and expected to remain in similar range.

Strong liability management kept borrowing cost stable at 7.64%, resulting in 11 bps QoQ improvement in NIM to 7.81%. Funding franchise diversified with addition of two new large relationships.

Asset quality remains industry-leading with 1+ DPD improved by 18 bps YoY to 3.81%, comfortably below 5%. The company has cumulatively funded over 800 green homes, establishing leadership in green housing segment.

Liquidity Position

Total Liquidity Position: ₹31,460 mn surplus funds available
Cash & Cash Equivalents: ₹18,550 mn
Un-availed CC Limits: ₹1,010 mn
Documented & Un-availed Sanctions from Banks: ₹3,000 mn
High-Quality Liquidity: ₹19,560 mn

Liquidity Projection (₹ mn)

| Q3FY27 | 22,560 | 9,973 | 7,522 | 25,011 |

| Q4FY27 | 25,011 | 9,992 | 8,142 | 26,860 |

| Q1FY28 | 26,860 | 9,865 | 7,234 | 29,491 |

| Q2FY28 | 29,491 | 9,960 | 7,991 | 31,460 |

Historical Financial Performance (5-Year CAGR)

AUM: ₹234.5 bn (20% CAGR)
Disbursement: ₹67.8 bn (21% CAGR)
Total Assets: ₹212.1 bn (19% CAGR)
Borrowings: ₹156.9 bn (20% CAGR)
Net Worth: ₹50.5 bn (16% CAGR)
Number of Branches: 435 (9% CAGR)

Key Management Team

Manu Singh: MD & Chief Executive Officer (13+ years experience, CA)
Ghanshyam Gupta: Interim Chief Financial Officer (20+ years experience, CA)
Nitin Rughwani: Chief Credit Officer (20+ years experience, CA)
Jijy Oommen: Chief Technology Officer (25+ years experience, M.Tech)
Ripudaman Bandral: Chief Business Officer (25+ years experience, PG in Finance)
Rajaram Balasubramaniam: Chief Strategy Officer & Head of Analytics (25+ years experience, CA)
Sharad Pathak: Head of Operations (23+ years experience, MBA)
Saurabh Sharma: Company Secretary & Compliance Officer (14+ years experience, CS)
Ramachandran Venkatesh: Head of Internal Audit (29+ years experience, MA)
Punit Agarwal: Interim Chief Risk Officer (25+ years experience in financial services)

Board of Directors

Vellur Gopalaraghavan Kannan: Chairperson of Board and Independent Director (40+ years experience, MBA)
Soumya Rajan: Independent Director & Chairperson of Nomination & Remuneration Committee (31+ years experience)
Vivek Karve: Independent Director & Chairperson of Audit Committee (30+ years experience, CA and Cost Accountant)
Siddharth Patel: Promoter Nominee Director (27+ years experience, Oxford University)
Nikhil Gahrotra: Promoter Nominee Director (23+ years experience, Engineering from VJTI, PGP from ISB)
Neha Sureka: Promoter Nominee Director (18+ years experience, Engineering, MBA from JBIMS)
Rohit Ranjan: Non-Executive Nominee Director (25+ years experience in financial services)
Sanjeev Srinivasan: Additional Non-Executive Nominee Director (28+ years experience, MBA)

Shareholding Pattern (Top Institutional Shareholders as of September 30, 2026)

CVC Capital: 48.88%
HDFC Asset Management: 3.50%
ICICI Pru Asset Management: 3.14%
UTI Asset Management: 3.04%
Axis Max Life: 2.73%
Sundaram Asset Management: 2.79%
GPF Global: 2.29%
Nippon Asset Management: 2.19%
Vanguard Index Funds: 2.15%
ADIA: 2.12%
SBI Asset Management: 1.93%
MIT (managed by 360 One AMC): 1.37%
Blackrock Asset Management: 1.28%
Whiteoak Capital AMC: 1.16%
Franklin Templeton AMC: 1.03%

ESG Ratings

Niche99: 76.92 (Leader)
CFC Finlease Private Limited: 82 (Excellent)
CRISIL: 68 (Strong)
ESG Risk Assessment: 69 (Strong)
Morningstar (Sustainalytics): 23.9 (Medium Risk)
NSE Sustainability: 71 (Aspiring)
S&P Global ESG Score: 35
SES ESG Research: 77.7 (Medium)
Carbon Disclosure Project (CDP): Disclosure Level

Corporate Governance Policies

The company has implemented Code of practices for fair disclosure of unpublished price sensitive information, Code of conduct for Board and Senior Management, Internal Guidelines on Corporate Governance, Vigil mechanism/whistle-blower policy, Anti-Bribery Corruption Policy, KYC and Anti-Money Laundering Measures, Fair Practice Code, and ESG Policy.