Aavas Financiers Ltd.AUM ₹248 bn, productivity up, spreads above 5%

Aavas Financiers' Q2 FY27 call, held on 26 October 2026, reported AUM of ₹248.0 billion, up 16.1%, with the company on track to cross ₹250 billion in October, and first-half disbursements of ₹35.1 billion, up 30%.

Productivity per relationship officer rose from 1.1 to 1.2 files a month and reached 1.3 in September, against a target of 1.5 by the end of FY27. First-half net profit was ₹3.5 billion, up 16.4%, with NIM at 7.81% in Q2, cost-to-income at 42.9%, ROA of 3.28% and ROE of 13.63%. Gross Stage 3 was 1.11% and credit cost 24 basis points. Cost of borrowing held at 7.64%; after the 25 basis point repo rise management expects it to increase but says spreads will stay above 5%, with no change yet to its prime lending rate.

Management sees no drought impact on asset quality, kept its 16% to 17% AUM growth and 20% plus disbursement growth guides, and expects to recover about half of the insurance income that an April 2027 rule puts at risk.