Aavas Financiers Q2 Results: Net profit rises 11% to ₹164 cr, NII up 19%

Aavas Financiers Ltd reported a 10.8% year-on-year rise in net profit at ₹163.9 crore for the quarter ended September 2025 (Q2FY26), compared to ₹147.9 crore in the same period last year.

The company’s net interest income (NII) grew 19.1% to ₹288.1 crore from ₹241.8 crore a year ago, supported by steady growth in its loan book and improved operational efficiency.

Assets under management (AUM) stood at ₹21,356.6 crore in H1FY26, up 16% from ₹18,395.6 crore a year ago.

Disbursements during Q2FY26 rose

21% YoY and 36% sequentially to ₹1,560 crore, reflecting strong demand for affordable housing finance across key markets.

Commenting on the performance, Sachinder Bhinder, Managing Director and Chief Executive Officer, said, “Our strategic priorities remain centred on optimising both yield and credit quality. During H1FY26, we achieved a 10-bps improvement in yields over H1FY25, supported by targeted initiatives to enhance our portfolio mix and pricing discipline. Further, our proactive liability management has helped reduce our cost of borrowing by 17 bps QoQ, enabling us to deliver a healthy spread above 5%, at 5.23%.”

Bhinder highlighted that the company’s recent technological transformation is yielding measurable results.

“As of September 2025, the turnaround time from login to sanction has been reduced to six days, a significant improvement from 13 days earlier. Our paper usage has been cut by 59%, and we have rolled out digital agreements in 223 branches,” he added.

Shares of Aavas Financiers Ltd ended lower by 2.13% at 1,618.70 on the NSE today, November 11.

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