Aavas Financiers Limited has announced its audited financial results for the quarter and year ended 31st March 2026, revealing a robust performance across key metrics. The company’s assets under management (AUM) reached ₹234.5 billion, marking a 15% year-on-year growth.
For the fourth quarter of FY26, Aavas Financiers disbursed loans amounting to ₹23.5 billion, reflecting a 36% sequential increase. This was achieved while maintaining a strong focus on quality origination and prudent underwriting. The net profit for Q4 FY26 rose by 18% year-on-year to ₹1.82 billion, driven by a 17% year-on-year growth in net interest income (NII) due to a healthy improvement in spread.
The company’s spread expanded by 31 basis points year-on-year to 5.20%, supported by a 62 basis points improvement in borrowing costs, which stood at 7.62%. The net interest margin (NIM) as a percentage of total assets increased by 44 basis points quarter-on-quarter to 8.45% in Q4 FY26 and by 29 basis points in FY26.
Aavas Financiers’ asset quality remained strong, with the 1+ days past due (DPD) metric improving by 63 basis points sequentially to 3.17% as of March 2026. The gross non-performing assets (GNPA) levels improved by 14 basis points sequentially to 1.05%. The company also reported a stable cost-to-income ratio of 45.9% in Q4 FY26, indicating improved efficiency.
In FY26, Aavas Financiers secured a commitment of approximately ₹975 crore from a marquee multilateral financial institution, representing the largest non-convertible debenture (NCD) placement in the company’s history. This reflects strong external confidence in the company’s quality-led growth strategy and long-term vision.
Commenting on the performance, Mr. Manu Singh, Chief Executive Officer, expressed gratitude for the trust placed in him by the board and the Aavas family. He highlighted the company’s commitment to growing with purpose and maintaining a credit-first approach. Mr. Singh also noted the company’s expansion into new markets, with 31 new branches added during the quarter, bringing the total network to 435 branches across 15 states.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).