Aavas targets two monthly files on Rs 50,000 crore AUM path

Aavas Financiers Limited is targeting approximately two loan files a month per relationship officer as it builds towards Rs 50,000 crore of assets under management, or AUM. Productivity rose from 1.1 files in Q1FY27 to 1.2 in Q2FY27 and 1.3 in September 2026, while H1FY27 disbursements increased 30% year on year to Rs 3,510 crore.

What is Aavas targeting in its next growth phase?

Aavas is targeting approximately two monthly loan files per relationship officer, or RO, while pursuing a path towards Rs 50,000 crore in AUM. Management said Aavas was on track to cross Rs 25,000 crore of AUM during October 2026 after serving nearly 4.5 lakh customers, having reported Rs 24,800 crore at September 2026, up 16.1% year on year.

The nearer productivity target is approximately 1.5 files per RO per month by the end of FY27, followed by a progressive move to two files. Management described the approach as combining higher output per resource with expansion and deeper market coverage, and said it sees scope to deliver AUM growth of more than 20% over the long term.

The increase from 1.1 files in Q1FY27 to 1.2 in Q2FY27 followed stronger field accountability and customer-acquisition efforts, according to management. Revenue per RO rose 29% in H1FY27, while the operating-expense-to-assets ratio declined 18 basis points year on year to 3.33%, linking the productivity programme to resource economics.

How will Aavas increase relationship-officer productivity?

Aavas plans to lift RO productivity through more leads, staffing at identified growth locations and closer field management. Management said it remapped people requirements using data and growth patterns from the preceding four quarters and is investing in alternate channels, including digital channels, to supplement the top of the funnel.

The direct team is using technology-led hotspot identification and a daily market-coverage process that management compared with a fast-moving consumer goods beat plan. Aavas is also monitoring supervisor productivity because supervisors can develop new lead channels; management said active ROs and active supervisors have both risen month on month.

The redesigned incentive plan starts at an RO's first disbursement and offers higher slabs for people closing two or three files. Management said incentives also encourage direct business within a 40-kilometre to 50-kilometre branch catchment, while a long-term incentive plan and employee stock option plan covered about 200 employees during the middle of Q2FY27.

Will Aavas loosen underwriting to meet its file target?

Aavas said it will not relax underwriting filters to increase file volumes. Instead, ROs can seek a credit relook by submitting more documentation or arranging another customer discussion, which management said provides a second chance without diluting credit standards.

Aavas is using a technology platform with business rule engines to assess transaction-level risk-adjusted returns. Management said price ranges can vary by geography, branch performance, product, sourcing cost and credit characteristics, and that the system is reviewed twice a month to stay aligned with borrowing costs.

Portfolio measures in Q2FY27 remained within the ranges cited by management. One-plus-days-past-due, or 1+ DPD, was 3.81%, down 18 basis points year on year; gross Stage 3 was 1.11%, down 13 basis points; and net Stage 3 was 0.70%, down 16 basis points. Credit costs were 24 basis points in H1FY27, within management's guided range.

What financial evidence supports the productivity plan?

Aavas disbursed Rs 3,510 crore in H1FY27, up 30% year on year, compared with 16.1% growth in AUM to Rs 24,800 crore at September 2026. Management attributed the disbursement increase to volume growth and productivity gains, and said its repayment rate had normalised to about 17% during Q2FY27.

Net profit rose 16.4% year on year to Rs 350 crore in H1FY27, while net interest income increased 17% and operating profit rose 18%. The cost-to-income ratio fell 195 basis points year on year to 42.9%, which management attributed to cost efficiency alongside business growth.

Aavas's medium-term objectives are to reduce operating expenses to assets below 3% and cost to income below 40%. Management said the potential improvement rests on productivity, technology, automation, branch profitability and revenue per resource, while continuing to invest in branches, geography and people.

Which products and branches will drive Aavas growth?

Aavas expects deeper coverage in existing markets and higher output from deployed staff to support growth. Management's broad framework assigned roughly 8% of volume growth to branches, 10% to productivity and 5% to 7% to average ticket size, within a volume growth ambition of more than 20% on a compound annual basis.

The network reached 443 branches across 15 states in Q2FY27, and Aavas added more than 21,500 customers in H1FY27. Management said it will keep investing in branches, focus on deeper penetration including hinterland markets, and monitor newer outlets for faster branch-level break-even.

Aavas said it is comfortable with a steady-state AUM mix of 65% home loans and 35% non-home loans. Data-led top-up loans to existing customers represented roughly 5% of total disbursements and are recorded as loans against property, or LAP; management said the offers carry near-zero acquisition cost and support retention.

Conclusion

Aavas's path towards Rs 50,000 crore in AUM is centred on measurable frontline productivity, branch deepening and lead generation rather than looser underwriting. The rise to 1.3 files per RO in September 2026 from 1.1 in Q1FY27, together with Rs 3,510 crore of H1FY27 disbursements and 29% growth in revenue per RO, provides the operating evidence behind that strategy.

The next measures to watch are progress towards approximately 1.5 files per RO per month by the end of FY27, the stated aim to maintain spreads above 5%, and movement towards operating expenses to assets below 3%. Management also said its asset-liability committee meets monthly to assess a possible lending-rate change following the 25-basis-point repo-rate increase, while branch expansion and monitoring of new-branch profitability will continue.