Aavas Financiers Limited — PPTs, 12-08-2025: Investor Presentation

Here's a summary for Aavas Financiers Ltd. for retail investors:

**1. Financial Highlights:**

AUM grew 16% year-on-year (YoY) to ₹20,740 Cr. Profit After Tax (PAT) increased 10% YoY to ₹139.2 Cr. Net Interest Margin (NIM) stood at 7.48% and Spread at 5.11%, indicating healthy profitability. Asset quality remained strong with Gross Non-Performing Assets (GNPA) at 1.22% and Net NPAs at 0.84%.

**2. Strategic Initiatives & Growth Drivers:**

The company's extensive network now spans 397 branches across 14 states/UTs, with over 80% in Tier 3+ towns, driving market penetration. Significant technology investments across origination, loan management, and ERP systems are enhancing operational efficiency and customer experience, supporting scalable growth.

**3. Business Developments:**

The company continues to strengthen its in-house execution model for sourcing, underwriting, and collections. This robust framework, supported by ongoing digital transformation, is a key enabler for its focused growth in the affordable housing segment for self-employed individuals.

**4. Market Position & Competitive Advantage:**

Aavas maintains a strong niche in affordable housing finance, with 84% of its AUM in loans below ₹15 lakh and 60% catering to the self-employed segment. Its differentiated in-house model and pristine asset quality offer a clear competitive advantage.

**5. Investor Implications:**

The Q1FY26 performance suggests positive growth potential, underpinned by a robust branch network and tech-led operations. Strong capital adequacy (CRAR 43.2%) and diversified funding provide a solid foundation for future expansion. While disbursements saw a one-time impact, overall execution appears strong.