Aavas Financiers Limited (AAVAS)
₹1,195.20 +0.12% last close, 16 Oct
Q2 FY27 results
📅 Next results: 26 Oct 2026 (board meeting)Aavas Financiers Limited's board meets on 26 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Aavas Financiers' net interest income was ₹416 Cr (+16.5% year on year, -5.9% on the previous quarter), and net profit ₹171 Cr (+23.2% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹416 | +16.5% | -5.9% |
| Operating profit | ₹220 | — | — |
| Net profit | ₹171 | +23.2% | -5.9% |
| EPS (₹) | 21.60 | +22.8% | -5.7% |
AAVAS delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 73.04% of the AAVAS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 54.35%. Delivery was unusually high while the price barely moved (+0.12%).
Delivery in the last 5 sessions: 81.2% · 48.8% · 44.7% · 49.1% · 73.0%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Aavas Financiers Limited submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by MUFG Intime India Private Limited, the company's Registrar and Share Transfer Agent. Notably, the RTA confirmed that zero dematerialisation requests were received from shareholders during the quarter. This filing is purely administrative in nature and has no operational or financial impact.
- Compliance certificate submitted for the quarter ended September 30, 2026
- Issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited on October 6, 2026
- 0 dematerialisation requests received from shareholders during the quarter ended September 30, 2026
Aavas Financiers has issued a Postal Ballot notice to seek shareholder approval for the appointment of Mr. Manu Yeshpal Singh as Managing Director and CEO for a 5-year tenure effective September 19, 2026. The appointment has already received approval from the Reserve Bank of India on September 17, 2026. In addition, shareholders are voting on the appointment of Mr. Sanjeev Srinivasan as a Non-Executive Nominee Director. Remote e-voting commences on October 3, 2026, and concludes on November 1, 2026.
- Appointment of Mr. Manu Yeshpal Singh as MD & CEO for a 5-year tenure from September 19, 2026, to September 18, 2031
- RBI approval for the MD appointment received on September 17, 2026
- Appointment of Mr. Sanjeev Srinivasan as Non-Executive Nominee Director
- E-voting period runs from October 03, 2026, to November 01, 2026, with cut-off date as September 25, 2026
- Mr. Manu Yeshpal Singh drew remuneration of Rs 1.41 Cr up to August 2026 in his capacity as CEO
Aavas Financiers has approved the re-appointment of Mr. Sharad Pathak as Chief Compliance Officer (Senior Management Personnel) for a 3-year term effective October 1, 2026. The re-appointment was approved via circular resolution following the recommendation of the Nomination and Remuneration Committee. The move complies with RBI's Non-Banking Financial Companies – Compliance Function Directions dated July 31, 2026. This represents a routine administrative extension of an existing senior managerial role.
- Re-appointment of Mr. Sharad Pathak as Chief Compliance Officer approved on September 28, 2026
- Tenure set for a period of 3 years effective from October 01, 2026
- Executed pursuant to RBI Non-Banking Financial Companies Compliance Function Directions dated July 31, 2026
CARE Ratings has reviewed credit ratings for Aavas Financiers across Rs 14,121.92 crore of facilities, maintaining long-term bank facilities and NCDs at 'CARE AA' while keeping them on 'Rating Watch with Developing Implications' (RWD). Bank facilities were enhanced by Rs 500 crore to Rs 12,762.00 crore, alongside Rs 1,259.92 crore in existing NCDs and a newly assigned CARE AA (RWD) rating on Rs 100 crore NCDs. The agency highlighted that the Rating Watch follows multiple changes in the senior leadership team and their potential impact on the company's credit risk profile.
- Total rated facilities reviewed stand at Rs 14,121.92 crore under CARE AA (RWD)
- Long-term bank facilities enhanced by Rs 500 crore from Rs 12,262.00 crore to Rs 12,762.00 crore
- Assigned CARE AA (RWD) rating to fresh Non-Convertible Debentures of Rs 100.00 crore
- Ratings placed/continued on 'Rating Watch with Developing Implications' following senior leadership changes
Aavas Financiers has announced the appointment of Mr. Nitin Rughwani as Chief Credit Officer and Senior Managerial Personnel, effective September 23, 2026. The approval was made via a circular resolution passed by the Board of Directors following the recommendation of the Nomination and Remuneration Committee. Mr. Rughwani brings over two decades of experience across retail and secured lending, with prior leadership roles at Shriram Finance, Yes Bank, and Tata Capital.
- Appointment of Mr. Nitin Rughwani as Chief Credit Officer approved on September 23, 2026
- Effective date of appointment is September 23, 2026
- Appointee brings over 2 decades of credit and risk management experience from NBFCs and banks
- Prior senior leadership tenures include Shriram Finance Limited, Yes Bank Limited, and Tata Capital Limited
Aavas Financiers announced key leadership changes following RBI approval received on September 17, 2026. The Board approved the elevation of current CEO Manu Yeshpal Singh to Managing Director & CEO for a 5-year tenure effective September 19, 2026 to September 18, 2031, subject to shareholder approval. Additionally, Mr. Sanjeev Srinivasan was appointed as Non-Executive Nominee Director representing promoter Aquilo House Pte. Ltd for 5 years, while Mr. Anant Jain resigned as Nominee Director due to personal reasons effective September 18, 2026. These board reconstitutions align with the transition under promoter Aquilo House (CVC Capital Partners).
- Mr. Manu Yeshpal Singh elevated to Managing Director & CEO for a 5-year term from September 19, 2026 to September 18, 2031
- RBI approval for leadership appointments received vide letter dated September 17, 2026
- Mr. Sanjeev Srinivasan appointed as Non-Executive Nominee Director for a 5-year term by promoter Aquilo House Pte. Ltd
- Mr. Anant Jain resigned as Non-Executive Nominee Director effective closure of business hours on September 18, 2026
Aavas Financiers Limited has submitted an updated list of Key Managerial Personnel (KMPs) authorized to determine event materiality and make stock exchange disclosures pursuant to Regulation 30(5) of SEBI LODR. The authorized personnel include Managing Director & CEO Manu Yeshpal Singh, Interim CFO Ghanshyam Gupta, and Company Secretary & Compliance Officer Saurabh Sharma. This administrative filing follows the outcome of the Board Meeting held on September 18, 2026. There is no direct financial impact on the company's balance sheet or operating performance.
- Disclosure filed under Regulation 30(5) of SEBI LODR on September 18, 2026
- List of 3 authorized KMPs updated: MD & CEO, Interim CFO, and Company Secretary
- Board meeting reference cited as Ref No. AAVAS/SEC/2026-27/3207 dated September 18, 2026
- Company Secretary Saurabh Sharma digitally signed the intimation at 19:29:27 IST
Aavas Financiers Limited submitted a disclosure under Regulation 30(5) of SEBI LODR notifying the exchange of updated Key Managerial Personnel (KMPs) authorized to determine event materiality and handle stock exchange disclosures. The authorized officials include MD & CEO Mr. Manu Yeshpal Singh, Interim CFO Mr. Ghanshyam Gupta, and Company Secretary & Compliance Officer Mr. Saurabh Sharma. This administrative update follows the outcome of the Board meeting held on September 18, 2026. There is no direct financial impact on the company's balance sheet or earnings.
- Disclosure filed on September 18, 2026 under Regulation 30(5) of SEBI LODR Regulations, 2015
- Authorizes 3 Key Managerial Personnel for determining materiality and making exchange disclosures
- Designations include MD & CEO (Manu Yeshpal Singh), Interim CFO (Ghanshyam Gupta), and CS & Compliance Officer (Saurabh Sharma)
- Follows reference disclosure of Board Meeting outcome Ref No. AAVAS/SEC/2026-27/3207 dated September 18, 2026
Aavas Financiers announced key board changes following RBI approvals received on September 17, 2026. The Board approved the elevation of current CEO Manu Yeshpal Singh to Managing Director & CEO for a 5-year term from September 19, 2026, to September 18, 2031. Additionally, Sanjeev Srinivasan has been appointed as Non-Executive Nominee Director representing promoter Aquilo House Pte. Ltd. (CVC Capital Partners) for 5 years, replacing Anant Jain, who resigned due to personal reasons on September 18, 2026.
- Manu Yeshpal Singh elevated to Managing Director & CEO for a 5-year term starting September 19, 2026, following RBI approval
- Sanjeev Srinivasan appointed as Non-Executive Nominee Director for a 5-year term representing promoter Aquilo House Pte. Ltd.
- Resignation of Nominee Director Anant Jain accepted effective close of business hours on September 18, 2026
- Appointments received regulatory clearance from RBI on September 17, 2026, and remain subject to shareholder approval
Aavas Financiers announced key board appointments following approval from the Reserve Bank of India on September 17, 2026. The Board approved the elevation of current CEO Mr. Manu Yeshpal Singh as Managing Director & CEO for a 5-year term from September 19, 2026, to September 18, 2031. Additionally, promoter nominee Mr. Sanjeev Srinivasan was appointed as Non-Executive Nominee Director for 5 years, replacing Mr. Anant Jain, who resigned due to personal reasons.
- Appointment of Manu Yeshpal Singh as MD & CEO for a 5-year term from September 19, 2026, to September 18, 2031
- RBI approval received vide letter dated September 17, 2026, prior to board confirmation
- Appointment of Sanjeev Srinivasan as Non-Executive Nominee Director for a 5-year term representing Aquilo House Pte. Ltd.
- Resignation of Non-Executive Nominee Director Anant Jain effective September 18, 2026
Aavas Financiers has informed the stock exchanges of its schedule for investor and analyst meetings from September 23 to September 28, 2026. The management will attend one-on-one sessions in Singapore on September 23, participate in the BoFA Conference in Hong Kong on September 24-25, and attend the Isec Affordable Housing Day in Mumbai on September 28. The company confirmed that discussions will rely strictly on publicly available information without sharing unpublished price sensitive information (UPSI).
- One-on-one meetings with existing and proposed investors in Singapore scheduled for September 23, 2026
- Participation in the BoFA Conference in Hong Kong across September 24 and September 25, 2026
- Attendance at the Isec Affordable Housing Day in Mumbai on September 28, 2026
- Discussions restricted to public information; presentation dated July 21, 2026 referenced
Aavas Financiers has secured regulatory approval from the Reserve Bank of India (RBI) on September 17, 2026, for the appointment of Mr. Manu Yeshpal Singh as Managing Director. The approved tenure is for a period of 5 years starting from the date of appointment. This follows the prior disclosure on April 20, 2026, proposing his appointment as MD & CEO. The formal appointment will be finalized once approved by the Board of Directors in due course.
- RBI approval received vide letter dated September 17, 2026
- Appointment of Mr. Manu Yeshpal Singh approved for a tenure of 5 years
- Follows initial proposal and intimation dated April 20, 2026
- Next step entails formal approval from the Board of Directors
At its 16th AGM on September 16, 2026, Aavas Financiers shareholders approved all agenda items, including an enabling resolution to raise up to ₹9,000 crore via Non-Convertible Debentures (NCDs) over the next year (valid till September 15, 2027). The approved borrowing limit represents ~87.6% of the company's market cap of ₹10,270 crore, providing headroom to fund loan growth. Additionally, shareholders regularized the appointment of two Independent Directors, Mr. Vivek Anant Karve and former SBI MD Mr. Vellur Gopalaraghavan Kannan, each for a 5-year term. Re-appointments of nominee directors and ratification of remuneration for former MD & CEO Mr. Sachinderpalsingh Jitendrasingh Bhinder were also passed.
- Shareholders approved borrowing via NCDs on private placement up to ₹9,000 crore, valid till September 15, 2027
- NCD authorization of ₹9,000 crore represents ~87.6% of Aavas' market cap of ₹10,270 crore
- Appointment of Mr. Vivek Anant Karve regularized as Independent Director for 5 consecutive years from June 23, 2026
- Appointment of Mr. Vellur Gopalaraghavan Kannan regularized as Independent Director for 5 consecutive years from August 01, 2026
- Payment of remuneration ratified for former MD & CEO Mr. Sachinderpalsingh Jitendrasingh Bhinder
Aavas Financiers announced the voting results of its 16th Annual General Meeting held on September 16, 2026. All proposed resolutions were passed by shareholders with requisite majorities, including the adoption of FY26 financial statements and director appointments. Shareholders also approved enabling special resolutions to increase borrowing powers under Section 180(1)(c), create asset charges under Section 180(1)(a), and issue Non-Convertible Debentures (NCDs) via private placement with over 99.99% voting approval.
- Total of 6,43,57,896 votes polled, representing approximately 81.16% of total outstanding shares
- Special resolution for private placement of NCDs passed with 99.998% votes in favor (6,43,56,563 votes)
- Approval for enhanced borrowing limits under Section 180(1)(c) passed with 99.999% votes in favor
- Resolution ratifying former MD & CEO Sachinderpalsingh Bhinder's remuneration passed with 91.37% approval, seeing 21.74% institutional votes against
Aavas Financiers concluded its 16th Annual General Meeting, presenting its operational and financial highlights for FY 2025-26. The company reported an AUM growth of 15% to ₹23,451 crore and an 11% increase in disbursements to ₹6,775 crore, with net profit rising 14% to ₹654.9 crore. Asset quality remained stable with Gross Stage 3 assets at 1.05% and Net Stage 3 at 0.68%, supported by a Capital Adequacy Ratio of 44.6%. Management outlined an aspiration to cross ₹50,000 crore in AUM over the next 4 to 5 years following the promoter induction of CVC Capital Partners.
- AUM increased by 15% to ₹23,451 crore with disbursements up 11% to ₹6,775 crore
- Net profit grew 14% to ₹654.9 crore, with Net Interest Margin improving to 7.93%
- Asset quality maintained with Gross Stage 3 at 1.05% and Net Stage 3 at 0.68%
- Capital Adequacy Ratio stood strong at 44.6% as balance sheet crossed ₹20,000 crore
- Network expanded to 435 branches across 13 states and 2 Union Territories serving ~2.7 lakh live customer accounts
Financial Performance
Revenue Growth by Segment
Assets Under Management (AUM) grew 18% YoY to INR 20,420 Cr in FY25. As of March 31, 2025, the portfolio mix consists of Individual Home Loans at 68% (INR 13,885 Cr), MSME loans at 19% (INR 3,880 Cr), and Loan Against Property (LAP) at 13% (INR 2,655 Cr). Q2FY26 AUM reached INR 21,356 Cr, representing a 16% YoY increase.
Geographic Revenue Split
Operations are highly concentrated with the top 3 states (Rajasthan, Maharashtra, and Gujarat) accounting for 65% of total AUM as of June 30, 2025. This is a reduction from 71% in March 2022 as the company expands into 11 other states/UTs.
Profitability Margins
Net Interest Margin (NIM) stood at 5.7% in FY25, down from 6.0% in FY24 due to systemic interest rate hikes. However, Q2FY26 NIM expanded by 26 bps YoY to 8.04%. Return on Average Total Assets (RoTA) was 3.3% in FY25, though it moderated to 2.9% in Q1FY26.
EBITDA Margin
Not applicable for HFCs; however, Net Total Income grew 18% YoY in Q2FY26. Return on Average Tangible Net Worth (RoNW) was 14.3% in FY25 (INR 574 Cr PAT) compared to 14.1% in FY24 (INR 491 Cr PAT).
Capital Expenditure
Significant technology investments are being made in 'Aavas 3.0' including Salesforce for LOS, Oracle Flexcube for LMS, and Oracle ERP. While specific INR Cr for future capex is not disclosed, the company maintains a network of 397 branches as of June 2025.
Credit Rating & Borrowing
CARE AA rating with outlook revised from Stable to Positive in 2025. The company maintains a diversified funding mix: Banks/FIs (48%), NHB Refinance (14%), NCDs (11%), and Assignment/Co-lending (25%). Cost of funds is being optimized by shifting to EBLR-linked and shorter-tenure MCLR instruments.
Operational Drivers
Raw Materials
Debt capital serves as the primary 'raw material', with borrowings totaling approximately INR 13,927 Cr (on-balance sheet) as of March 2025. Cost of borrowing was 8.04% in Q2FY26.
Import Sources
Sourced domestically from 32 lending relationships including public/private banks and All India Financial Institutions (AIFIs), plus multilateral agencies like IFC, ADB, and British International Investment.
Key Suppliers
Key lenders include National Housing Bank (NHB), International Finance Corporation (IFC), Asian Development Bank (ADB), and various domestic commercial banks.
Capacity Expansion
Current branch network stands at 397 branches across 14 states as of June 2025. The company aims to scale AUM to INR 55,000 Cr (INR 550 Bn) by FY30.
Raw Material Costs
Interest expense is the primary cost; the company proactively shifted a sizeable portion of borrowings to EBLR-linked instruments to benefit from potential interest rate softening.
Manufacturing Efficiency
Operating efficiency is measured by Opex to Asset ratio, which moderated to 2.8% in FY25 from 3.0% in FY24. Management targets keeping this ratio below 3% over the medium term.
Logistics & Distribution
Distribution is handled through 397 physical branches and a growing digital stack (Salesforce/Oracle).
Strategic Growth
Expected Growth Rate
18-20%
Growth Strategy
Execution of 'Aavas 3.0' focusing on technology-led scaling, deepening penetration in 11 non-core states to reduce concentration, and leveraging a 20% growth target in the affordable housing segment. Growth is supported by a strong CRAR of 46.4% and internal accruals, precluding the need for external capital in the medium term.
Products & Services
Home Loans for purchase/construction, MSME loans secured by mortgage, and Loans Against Property (LAP).
Brand Portfolio
Aavas Financiers Limited
New Products/Services
Expansion of MSME and LAP segments which currently constitute 32% of the AUM mix.
Market Expansion
Gradual diversification into 11 states/UTs beyond the core Rajasthan/Maharashtra/Gujarat belt to mitigate geographic risk.
Market Share & Ranking
Positioned as a leading player in the affordable housing finance segment with a CAGR of 24% between FY19-FY24.
Strategic Alliances
Co-lending and direct assignment partnerships account for 25% of the funding mix.
External Factors
Industry Trends
The affordable housing industry is growing at 20%+. Trends include a shift toward technology-integrated underwriting and a transition from physical-only to 'phygital' distribution models.
Competitive Landscape
Competes with Small Finance Banks (like AU SFB) and other affordable HFCs. Aavas maintains a competitive edge through a superior cost of funds and a diversified liability franchise.
Competitive Moat
Moat is built on cash-flow based underwriting for unserved segments and a low lifetime write-off of < INR 40 Cr. This is sustainable due to deep local knowledge and a 13-year track record.
Macro Economic Sensitivity
Highly sensitive to rural and semi-urban economic health; 60% of borrowers are self-employed and vulnerable to income shocks.
Consumer Behavior
Targeting 'new to mortgage' customers in rural/semi-urban areas who are increasingly seeking formal credit.
Geopolitical Risks
Minimal direct impact, though macro geo-political issues are noted as general risks in safe harbor statements.
Regulatory & Governance
Industry Regulations
Governed by National Housing Bank (NHB) and RBI regulations. Maintains CRAR of 46.4%, well above the regulatory minimum.
Environmental Compliance
Operating responsibly with no instances of regulatory fines; focus on customer privacy and data security to avoid regulatory censure.
Taxation Policy Impact
Effective tax rate not specified, but PAT of INR 574 Cr reported on healthy internal accruals.
Legal Contingencies
No material lapses or regulatory fines reported over the years. The company utilizes the SARFAESI Act for recoveries on secured assets.
Risk Analysis
Key Uncertainties
Potential asset quality volatility in softer buckets (1+ DPD at 3.99% in Q2FY26) due to the vulnerable nature of the low-income borrower segment.
Geographic Concentration Risk
65% of AUM is concentrated in just 3 states (Rajasthan, Maharashtra, Gujarat), creating susceptibility to regional economic or political shifts.
Third Party Dependencies
25% of funding relies on direct assignment and co-lending partners.
Technology Obsolescence Risk
Mitigated by significant investments in Salesforce and Oracle platforms to ensure a 'future-ready' organization.
Credit & Counterparty Risk
Secured lending with moderate LTV (55-60%) and a focus on self-occupied properties limits loss given default.
