Aavas Financiers Limited Q1 FY2027 Investor Presentation
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Overview
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Detailed Analysis
Sentiment
Positive
Executive Summary
Aavas Financiers Q1 FY2027: Net Total Income ₹4,138.9 Mn, PAT ₹1,712.7 Mn; AUM ₹239.3 bn
This investor presentation covers Aavas Financiers' Q1 FY2027 operating and financial performance, with Assets under Management at ₹239,306 Mn as on Jun-26 and quarterly disbursements of ₹16,139 Mn. The company reported Net Total Income of ₹4,138.9 Mn and Profit After Tax of ₹1,712.7 Mn in Q1 FY27, up 16.8% and 23.0% YoY respectively versus Q1 FY26. Key margin and asset-quality metrics include NIM of 7.70% in Q1 FY27, GNPA of 1.11% as of Jun-26 and 1+DPD at 3.76% as of Jun-26, and the presentation highlights liquidity of ₹32,320 Mn of surplus funds. Management emphasises branch expansion to...AUM
₹239,306 Mnvs ₹207,397 Mn in Jun-25
Disbursements (Q1)
₹16,139 Mnvs ₹11,454 Mn in Q1 FY26
Profit After Tax (PAT)
₹1,712.7 Mnvs ₹1,392.3 Mn in Q1 FY26
Net Total Income
₹4,138.9 Mnvs ₹3,543.4 Mn in Q1 FY26
Net Interest Margin (NIM)
7.70%vs 7.48% in Q1 FY26
GNPA
1.11%vs 1.22% in Q1 FY26
1+ DPD
3.76%vs 4.15% in Jun-25
Net Worth
₹52,196 Mnvs ₹50,508 Mn in FY26
Key Highlights
10
AUM increased to ₹239,306 Mn as on Jun-26, representing a 15% YoY rise from ₹207,397 Mn in Jun-25
Quarterly disbursements were ₹16,139 Mn in Q1 FY27, up 41% YoY from ₹11,454 Mn in Q1 FY26, driven by 38% YoY growth in the Home Loan segment
Net Total Income rose to ₹4,138.9 Mn in Q1 FY27, an increase of 16.8% YoY from ₹3,543.4 Mn in Q1 FY26
Profit After Tax was ₹1,712.7 Mn in Q1 FY27, a 23.0% YoY improvement versus ₹1,392.3 Mn in Q1 FY26
NIM improved to 7.70% in Q1 FY27, up 22 bps YoY from 7.48% in Q1 FY26, supported by a reported spread of 5.06%
Operating expenses were ₹1,809.9 Mn in Q1 FY27, up 10.4% YoY from ₹1,639.5 Mn in Q1 FY26 while cost-to-income improved to 43.7% reflecting operating leverage
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Key Highlights
10
AUM increased to ₹239,306 Mn as on Jun-26, representing a 15% YoY rise from ₹207,397 Mn in Jun-25
Quarterly disbursements were ₹16,139 Mn in Q1 FY27, up 41% YoY from ₹11,454 Mn in Q1 FY26, driven by 38% YoY growth in the Home Loan segment
Net Total Income rose to ₹4,138.9 Mn in Q1 FY27, an increase of 16.8% YoY from ₹3,543.4 Mn in Q1 FY26
Profit After Tax was ₹1,712.7 Mn in Q1 FY27, a 23.0% YoY improvement versus ₹1,392.3 Mn in Q1 FY26
NIM improved to 7.70% in Q1 FY27, up 22 bps YoY from 7.48% in Q1 FY26, supported by a reported spread of 5.06%
Asset quality remained strong with GNPA at 1.11% and NNPA at 0.71% as of Jun-26, and 1+DPD at 3.76% improving 39 bps YoY
Liquidity and ALM
Operating expenses were ₹1,809.9 Mn in Q1 FY27, up 10.4% YoY from ₹1,639.5 Mn in Q1 FY26 while cost-to-income improved to 43.7% reflecting operating leverage
ECL provisions totalled ₹1,407 Mn as on Jun-26 with Stage 3 provisions of ₹773 Mn (36.80% cover for Stage 3)
Distribution and reach expanded to 440 branches across 15 States/UTs and 2,600+ towns covered, supporting customer acquisition and self-sourcing focus
Guidance & Outlook
4
Management priorities for FY27 include accelerating customer acquisition, improving resource productivity and driving higher revenue per resource to increase operating leverage
Company plans branch expansion and aims to drive AuM growth to high-teens, noting monthly AUM additions improved nearly 50% YoY in the quarter
Management highlighted continued investment in technology and AI (LOS, LMS/CBS, Oracle Fusion, EPM) to reduce underwriting TAT (overall login-to-decision TAT improved from 13 days to 6 days in Q1 FY27)
Liquidity plan shows closing liquidity of ₹26,535 Mn projected for Q2 FY27 and incremental surplus to reach ₹32,320 Mn by Q1 FY28 supporting near-term funding needs
Risks & Concerns
5
Cost of borrowings trend
while CoB was 7.64% in Q1 FY27 management noted PLR reductions (15 bps Mar-26, 10 bps Jun-26) which may pressure spreads if passed through or if funding costs reset upward
Credit cost increased to ₹128.0 Mn in Q1 FY27 from ₹112.6 Mn in Q1 FY26 and showed volatility QoQ (66.5 in Q4 FY26), indicating potential episodic provision pressure
Funding concentration and tenor risk given borrowings of ₹160,705 Mn as on Jun-26 and reliance on institutional wholesale markets (term loans, assignments, NCDs), exposing the company to market liquidity cycles
Operational expansion risk
Geographic concentration
AI-generated analysis. May contain inaccuracies — verify against original sources.