Aavas Financiers Limited Earnings Summary — Q1 FY2026
Aavas Financiers Reports 10% YoY Profit Growth Amid Promoter Reclassification
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 8 consecutive quarters.
- Revenue of ₹546 Cr is 21.4% higher year-on-year.
- Revenue has compounded at 23.0% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹142 Cr is 12.3% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 23.4% annualised across the period.
- Operating margin stands at 74.6% in Q4 FY2024.
- Operating margin expanded by 83 bps year-on-year.
- Over the last two years operating margin has contracted by 116 bps.
- PBT margin is 32.5%.
- Expense growth of 17.6% remained below revenue growth of 21.4%.
- Operating profit of ₹407 Cr is 22.8% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 80/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q4 FY2024 | Q3 FY2024 | Q2 FY2024 | Q1 FY2024 | Q4 FY2023 | Q3 FY2023 | Q2 FY2023 | Q1 FY2023 | Q4 FY2022 | Q3 FY2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 546 | 508 | 497 | 467 | 450 | 411 | 395 | 353 | 365 | 343 |
| Expenses | Improving | 139 | 134 | 129 | 132 | 118 | 117 | 110 | 98 | 89 | 97 |
| Operating Profit | Improving | 407 | 374 | 368 | 335 | 332 | 294 | 285 | 255 | 277 | 246 |
| Operating Margin | Stable | 74.6% | 73.6% | 74.0% | 71.7% | 73.8% | 71.5% | 72.2% | 72.3% | 75.7% | 71.7% |
| Other Income | Volatile | 1 | 1 | 1 | 0 | 1 | 1 | 0 | 0 | 0 | 0 |
| Interest | Improving | 222 | 217 | 204 | 187 | 165 | 150 | 141 | 135 | 124 | 125 |
| Depreciation | Improving | 9 | 9 | 8 | 7 | 9 | 7 | 7 | 6 | 7 | 6 |
| Profit Before Tax | Improving | 177 | 150 | 157 | 141 | 159 | 138 | 138 | 114 | 146 | 115 |
| Tax | Improving | 35 | 33 | 36 | 31 | 32 | 31 | 31 | 25 | 30 | 26 |
| Net Profit | Improving | 142 | 117 | 122 | 110 | 127 | 107 | 107 | 89 | 115 | 89 |
| Net Margin | Stable | 26.1% | 23.0% | 24.5% | 23.5% | 28.2% | 26.0% | 27.0% | 25.2% | 31.6% | 25.9% |
Key Takeaways
- Revenue from operations grew 15.7% YoY to ₹627.56 crore, driven by a 14.4% increase in Interest Income.
- Aquilo House Pte. Ltd. completed its acquisition and became the new promoter, holding 48.96% of the company as of June 30, 2025.
- Asset quality remains stable but saw slight YoY pressure with GNPA at 1.22% compared to 0.94% in the previous fiscal year's full report.
- The company maintained a strong Capital Adequacy Ratio (CRAR) of 43.20% and a Liquidity Coverage Ratio of 128.28%.
- Net Profit Margin stood at 22.17% for the quarter, reflecting slight sequential compression from Q4 FY2025.
- Operating expenses were impacted by a 20.9% YoY increase in employee benefit expenses to ₹110.7 crore.
Management Guidance
Management continues to focus on the affordable housing niche in semi-urban and rural markets, emphasizing granular, low-ticket loans to maintain high yields and asset quality despite a rising cost-of-funds environment.
Sentiment Shift
Stable
While sequential profits dipped, the 10% YoY growth and successful promoter transition to Aquilo House provide a stable foundation for expansion.
Outlook
The company is positioned for continued long-term compounding by leveraging its 43.2% CRAR to expand its loan book across 13+ states while maintaining strict credit underwriting.
From the Annual Report (Key Quotes)
“Acquirer has acquired control of the Company, and stands reclassified as a 'promoter' of the Company with effect from June 30, 2025.”
“The Company is engaged primarily in the business of housing finance within India and there are no separate reportable segments.”
“Pursuant to purchase of shares... the Sellers have ceased to be the 'Promoters' and members of the 'promoter Group'.”
Official Quarterly Documents
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This summary is AI-generated from Aavas Financiers Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.