Aavas Financiers Q4FY26 Results: AUM grows 15% YoY; Net Profit rises 14% in FY26

Aavas Financiers is an affordable housing finance company based in Jaipur. It mainly serves low- and middle-income self-employed customers in semi-urban and rural India. The company offers home loans, loans against property and MSME loans. 

Aavas Financiers Results Key Highlights (Q4FY26 and FY26) 

The company announced its audited results for the quarter and year ended March 31, 2026, showing steady growth across major business metrics. 

• Assets Under Management (AUM): ₹235 billion, up 15% YoY
• FY26 Net Profit: ₹6.56 billion, up 14% YoY
• Spread: 5.20%
• Net Interest Margin (NIM): 7.93%
• Net Stage 3 assets: 0.68%
• 1+ DPD: 3.17%
• Strong capital base and positive asset-liability management  

Loan Growth and Disbursements 

• Loans worth ₹23.5 billion were disbursed in Q4FY26.
• Disbursements grew 36% sequentially and 16% YoY in the quarter.
• FY26 total disbursements stood at ₹67.8 billion, up 11% YoY.  

The company maintained a focus on quality lending and disciplined underwriting. 

Profit and Income Performance 

• Q4 Net Profit: ₹1.82 billion, up 18% YoY
• Net Interest Income: grew 17% YoY
• Net Worth: increased 16% YoY to ₹50.5 billion  

Margins improved as borrowing costs fell and spreads expanded. 

Margins and Efficiency Improve 

• Spread improved 31 bps YoY to 5.20%
• NIM expanded to 8.45% in Q4 and 7.93% for FY26
• Cost-to-income ratio remained stable at 45.9%  

Return ratios remained healthy: 

• ROA: 3.50%
• ROE: 14.67%  

Strong Asset Quality 

The company maintained high portfolio quality: 

• 1+ DPD: improved to 3.17%
• Gross Stage 3 (GNPA): improved to 1.05%
• Credit costs remained low at 13 bps for the quarter.  

Business Expansion and Funding 

During FY26, the company achieved several milestones: 

• New promoter CVC Capital Partners joined.
• AUM crossed ₹200 billion and Net Worth crossed ₹50 billion.
• Lifetime disbursements crossed ₹400 billion, helping 4 lakh customers own homes.
• Added 31 branches, taking the network to 435 branches across 15 states.
• Raised funding through:
• ₹975 crore commitment from a multilateral institution
• AAA-rated PTC securities issuance.  

Read More: Zen Technologies Share Price Drops 10%; Q4 FY26 Results Show PAT Falls 69% YoY!  

Outlook 

The company plans to grow through digital platforms, expand its distribution network, strengthen governance and scale operations efficiently while maintaining strong credit quality. 

Conclusion 

Aavas Financiers delivered a steady FY26 performance with strong AUM growth, improving margins and excellent asset quality.  

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