Aavas Financiers tops ₹20,000 cr AUM, margins improve

Milestone quarter for scale and profitability

Aavas Financiers said it crossed a key scale milestone with assets under management (AUM) above ₹20,000 crore, while maintaining double-digit profit growth across multiple reporting periods. The company also highlighted a balance sheet size exceeding ₹20,000 crore and pointed to continued momentum in retail lending. As of December 2025, AUM stood at ₹22,204 crore, reflecting 15.4% year-on-year growth. Profitability improved in tandem, supported by higher net interest income (NII) growth and stronger margins. The updates reinforce Aavas’ positioning as a retail, affordable housing finance lender focused on semi-urban and rural borrowers.

AUM growth trends across FY25 and FY26 updates

In FY25, Aavas reported AUM of ₹20,420 crore at end-March 2025, up 18% over March 2024. The portfolio mix disclosed for the same period showed home loans at 68% and other mortgage loans at 32%. For the first half of FY26, the company reported AUM of ₹21,360 crore as on 30-Sep-25, up 16% year-on-year. By December 2025, AUM increased further to ₹22,204 crore, keeping the company on a steady growth path.

Disbursements: growth supported by distribution reach

Aavas reported disbursements of ₹1,560 crore in Q2FY26, up 21% year-on-year and 36% quarter-on-quarter. For Q4FY25, disbursements were reported at ₹2,024 crore, up 7% year-on-year, while another disclosure for the same quarter put disbursements at ₹2,020 crore, up 27% quarter-on-quarter. For FY25, the company reported disbursements of ₹6,123 crore, up 10% year-on-year. The company has repeatedly attributed this to a retail loan focus supported by a wide distribution network.

Profit and income: FY25 and FY26 performance snapshots

Aavas reported net profit of ₹153.7 crore in Q4FY25, up 8% year-on-year, while FY25 profit rose 17% to ₹574.1 crore. For FY25, operating revenue was reported at ₹2,354.5 crore versus ₹2,017.5 crore in FY24. Another quarterly performance set showed revenue of ₹546.0 crore, up 7.47% quarter-on-quarter and 21.42% year-on-year, with net profit at ₹142.5 crore, up 22.07% quarter-on-quarter and 12.34% year-on-year.

For FY26 performance updates, the company reported Q3FY26 profit after tax of ₹170.3 crore, up 16% year-on-year, and 9MFY26 profit of ₹473.9 crore, up 13% year-on-year. It also reported NII growth of 17% year-on-year in Q3FY26.

Margins and funding: NIM and spread improved

Profitability was supported by strong yields and funding cost discipline, based on the company’s disclosures. In Q3FY26, net interest margin (NIM) expanded to 8.01% and spread improved to 5.34% year-on-year. For Q2FY26, Aavas reported spread expansion of 34 basis points year-on-year to 5.23%, driven by a 30 basis points year-on-year improvement in cost of borrowing to 7.85%. In Q4FY25, the company reported a spread of 4.89% and NIM of 7.64% for the quarter, with NIM as a percentage of total assets at 8.11%.

Asset quality and capital position: key disclosures

Aavas reported gross NPA of 1.08% and net NPA of 0.73% as on FY25, along with a provision coverage ratio of 60.87% and a liquidity coverage ratio of 128.12%. It also disclosed a capital adequacy ratio (CRAR) of 44.50% as of March 31, 2025. In another FY26 update, the company reported GNPA at 1.24% in Q2FY26. The company also said its net worth grew 16% year-on-year, reaching ₹4,361 crore as on March 31, 2025, driven by internal accruals.

Growth plans: branch expansion and FY27 targets

The company outlined growth targets that extend beyond near-term quarterly performance. It is targeting 25% disbursement growth and 17-18% loan book growth for FY27. Aavas also plans to add 50 branches, with a focus on Tier 2 and Tier 3 cities and expansion into new states. These plans indicate continued investment in physical distribution to support retail mortgage growth.

Stock and valuation snapshot from disclosed trading data

On April 25, 2025, Aavas Financiers shares traded 3.40% lower at ₹2,025.00 (2:27 PM IST), based on the disclosed market update. The stock’s 52-week high was reported at ₹2,238.35 and the 52-week low at ₹1,456.60. Exchange data cited a trailing P/E of 29.47x based on trailing 12-month EPS of ₹71.13, and a P/B of 4.10.

Key numbers at a glance

Why these updates matter for investors

The disclosures show a lender scaling its book while keeping reported asset quality metrics at low levels and maintaining high capital adequacy. Margin expansion trends across FY26 updates, including NIM around 8% and improved spread, are central to earnings resilience for housing financiers. Disbursement growth remains an important operating indicator, and the company’s branch addition plans signal that growth is expected to be distribution-led. Market participants also track AUM milestones because they can influence operating leverage and funding access over time.

Closing note

Aavas Financiers’ latest set of disclosures point to consistent AUM expansion, improving margin metrics in FY26 updates, and a well-capitalised balance sheet as of FY25. The next key monitorables will be execution against the stated FY27 targets for disbursements and loan book growth, along with progress on adding 50 branches and expanding into new states.