The firm reported a 23% year-on-year rise in profit after tax (PAT) to ₹171 crore for the quarter ended June 2026. The growth was supported by an 16.6% increase in net interest income (NII), indicating stronger core lending income during the quarter.
The company’s assets under management (AUM) increased 15.4% year-on-year to ₹23,930 crore as of June 30, 2026. Loan disbursements during the quarter stood at ₹1,610 crore, registering a 41% growth compared with the year-ago period.
Company’s net interest margin (NIM) improved 22 basis points year-on-year to 7.70% during the quarter. The firm’s operating expense ratio declined 9 basis points to 3.37%, while the cost-to-income ratio improved by 254 basis points year-on-year to 43.7%.
Asset quality remained stable, with the 1+ days past due (DPD) ratio improving by 39 basis points year-on-year to 3.76%. Gross non-performing assets (GNPA) declined 11 basis points to 1.11%, while net non-performing assets (NNPA) improved 13 basis points to 0.71%.
The company claimed that these outcomes reflect the discipline of its risk
architecture including the underwriting framework.
As per a press release filed at NSE, its return on assets (ROA) stood at 3.19%, improving by 25 basis points year-on-year, while return on equity (ROE) increased 78 basis points to 13.34%.
The company said it expanded its branch network to 440 locations during the quarter.
Commenting on the result, Manu Singh, Chief Executive Officer, Aavas Financiers Ltd said that The quarter reflects the early benefits of our focused execution strategy, stronger field-level accountability, and continued emphasis on customer acquisition.
He added, “The momentum witnessed during the quarter strengthens our confidence in the strategic initiatives underway and provides a solid foundation for the rest of the year.”
Aavas Financiers is a retail affordable housing finance company that primarily serves low- and middle-income self-employed customers in semi-urban and rural areas across India.
Shares of Aavas Financiers Ltd ended at ₹1,523.90 on July 21, gaining ₹26.50 or 1.77% on the NSE, ahead of the earning announcement.
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(Edited by : Prashant)
First Published: Jul 21, 2026 11:20 PM IST
