Aavas Financiers Limited (AAVAS) share price

₹1275.10 on NSE as of 2026-09-11. -0.86% on the day. market cap ₹10,110 Cr. P/E 20.6. 52-week range ₹1073.90 to ₹1736.40. Financial Services.

What the company does

Aavas is a Jaipur (Rajasthan) headquartered housing finance company, which primarily provides housing loans in rural and semi-urban areas. It is present in 14 states and 1 UT, with a network of 435 branches and AUM of Rs. 23,452 crore as on March 31, 2026.

Filed by ICRA, page 2.

AAVAS Financiers Q1 FY27: PAT Up 23% While the C-Suite Plays Musical Chairs

At a glance

Aavas Financiers closed the June 2026 quarter with revenue of ₹709 crore, up 12.9% from ₹628 crore a year earlier, and net profit of ₹171 crore, up 23.0% from ₹139 crore. Operating profit came in at ₹523 crore against ₹459 crore, and quarterly EPS was ₹21.60 versus ₹17.59. Sequentially the picture is flatter: revenue slipped from ₹715 crore in March 2026 and PAT eased from ₹182 crore, a 5.7% dip quarter-on-quarter.

The affordable-housing lender reported AUM of ₹23,931 crore as of June, up 15.4% year-on-year, with disbursements of ₹1,614 crore, up 41%. Gross Stage 3 stood at 1.11% and Net Stage 3 at 0.71%. On July 1, 2026, CARE placed Aavas's AA rating on watch with developing implications, citing a run of senior-leadership exits: the MD & CEO in April, the Chief Business Officer in May, and the CFO and CRO in June.

So the numbers went up while the org chart emptied out. The market currently pays 16.7x earnings for the combination. How the two facts sit together is the rest of this entry.

Introduction

Incorporated in 2011 and operational from March 2012, Aavas Financiers is a retail, affordable housing finance company that lends to low- and middle-income, largely self-employed borrowers in semi-urban and rural India. Its book is built on home loans for purchase and construction, plus loans against property and MSME loans. As of June 2026 it ran 440 branches across 15 states and UTs, having just extended into Chandigarh.

The ownership story turned over recently. Incorporated originally as a subsidiary of AU Small Finance Bank, Aavas passed in 2016 to private-equity owners Kedaara and Partners Group. In 2024 those promoters agreed to sell their 26.47% stake to Aquilo House Pte. Ltd., part of the CVC Capital group, and by June 2026 promoter holding sat at 48.88% under CVC via Aquilo.

The FY27 opening quarter arrived alongside a management reshuffle that CARE flagged. Manu Yashpal Singh was appointed MD & CEO from April 21, 2026 (subject to RBI approval), Ripudaman Bandral became Chief Business Officer from May, and interim appointments filled the CFO and CRO chairs in June. Management, per its stock-exchange clarification of June 22, refuted media assertions about an ongoing NHB refinance audit, calling them an inaccurate characterisation of the engagement.

Business model

Aavas lends small amounts to people banks find inconvenient. The average ticket size on AUM is about ₹1.0 million — roughly ten lakh — spread across families that mostly earn irregular, self-employed income. Sixty-two percent of AUM is self-employed borrowers, 64% is home loans, and 83% of the book sits under a ₹15-lakh ticket. This is the un-glamorous end of housing finance, where the underwriting is the entire moat.

The model is spread-based and mechanical: borrow wholesale, lend retail, keep the difference, and don't let the difference default. Yield on the book was 12.70% and cost of borrowing 7.64% in Q1 FY27, leaving a spread of 5.06% and a NIM of 7.70%. The company sources 84% of borrowings on floating rates against 71% floating-rate assets, which is the kind of mismatch that either helps or hurts depending entirely on which way rates move — a coin the treasury team doesn't get to flip.

Geographically the book is a Rajasthan story wearing a national jacket. The top three states — Rajasthan, Maharashtra and Gujarat — account for 64% of AUM, down from 71% in FY22 but still concentrated enough that CARE lists it as a key weakness. Rajasthan alone is a third of the book. Aavas has been expanding contiguously outward — Karnataka, Tamil Nadu, now Chandigarh — but the map still leans hard on the northwest.

The rest of the operation is the affordable-HFC standard kit: an in-house sourcing model, four pillars of risk (credit, legal, technical, RCU), and a technology stack that management describes with the enthusiasm of a company that has recently bought a lot of software. Oracle Fusion, an AI login quality checker, a Gen-AI voice bot doing collections calls in five languages. Somewhere a borrower in Bhilwara is being politely reminded of an EMI by a machine that speaks Marathi.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Aavas Financiers Limited.

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