The company saw a 23% year-on-year growth in profit after tax (PAT), reaching ₹171 crore for the quarter ending June 2026. This growth was aided by a 16.6% rise in net interest income (NII), highlighting a stronger core lending performance for the period.
The assets under management (AUM) for the company grew by 15.4% year-on-year, totaling ₹23,930 crore as of June 30, 2026. Loan disbursements for the quarter amounted to ₹1,610 crore, marking a 41% increase compared to the same period last year.
The net interest margin (NIM) for the company improved by 22 basis points year-on-year, reaching 7.70% for the quarter. The operating expense ratio decreased by 9 basis points to 3.37%, while the cost-to-income ratio enhanced by 254 basis points year-on-year to 43.7%.
Asset quality remained strong, with the 1+ days past due (DPD) ratio improving by 39 basis points year-on-year to 3.76%. Gross non-performing assets (GNPA) fell by 11 basis points to 1.11%, and net non-performing assets (NNPA) improved by 13 basis points to 0.71%.
The company indicated that these results reflect the efficacy of its risk
architecture, including its underwriting framework.
According to a press release submitted to the NSE, the return on assets (ROA) was recorded at 3.19%, which is a 25 basis points improvement year-on-year, while return on equity (ROE) increased by 78 basis points to 13.34%.
The company reported it expanded its branch network to 440 locations during the quarter.
Commenting on the results, Manu Singh, Chief Executive Officer of Aavas Financiers Ltd, noted that the quarter demonstrates the initial advantages of their focused execution strategy, enhanced accountability in the field, and sustained efforts in customer acquisition.
He added, “The momentum experienced during the quarter boosts our confidence in the strategic initiatives in progress and establishes a solid foundation for the remainder of the year.”
Aavas Financiers specializes in retail affordable housing finance, primarily catering to low- and middle-income self-employed individuals in semi-urban and rural areas across India.
Shares of Aavas Financiers Ltd closed at ₹1,523.90 on July 21, gaining ₹26.50 or 1.77% on the NSE, just before the earnings announcement.
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(Edited by : Prashant)
First Published: Jul 21, 2026 11:20 PM IST
