Shares of Aavas Financiers Ltd gained 3.19% to Rs 1,669.90 in early trade on Wednesday, November 12, following the company’s announcement of its financial results for the quarter ended September 30, 2025 (Q2 FY26). The steady uptick reflects investor optimism driven by strong disbursement growth and improved operational efficiency across the affordable housing finance segment.
Q2 FY26 performance
The company reported a 10.8% year-on-year rise in net profit to Rs 163.9 crore, compared with Rs 147.9 crore in the same period last year. Net interest income (NII) rose 19.1% YoY to Rs 288.1 crore, supported by healthy loan book expansion and stable spreads.
Assets under management (AUM) stood at Rs 21,356.6 crore as of September 30, 2025, up 16% YoY from Rs 18,395.6 crore in H1 FY25. Disbursements during the quarter grew 21% YoY and 36% sequentially to Rs 1,560 crore, reflecting resilient demand for housing loans in tier-II and tier-III markets.
Management commentary
Commenting on the results, Sachinder Bhinder, Managing Director and CEO, said the company remains focused on optimising yield and credit quality.
“During H1 FY26, we achieved a 10-bps improvement in yields over H1 FY25, 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 said.
He added that the company’s digital transformation initiatives have led to measurable improvements in turnaround time and process efficiency. “As of September 2025, the turnaround time from login to sanction has been reduced to six days from 13 days earlier. Our paper usage has dropped 59%, and digital agreements have been rolled out across 223 branches,” he noted.
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