AAVAS Financiers Ltd (NSE:AAVAS)

Q2 2026 Aavas Financiers Ltd Earnings Call Transcript

Nov 11, 2025 / 12:30 PM GMT

Release Date Price: ₹1619.2 (-2.10%)

Transcript

Key Points

Positve

AAVAS Financiers Ltd (BOM:541988) received a positive outlook revision from CARE Ratings, indicating potential for a future rating upgrade to AA+.
The company reported a strong 36% quarter-on-quarter and 21% year-on-year growth in disbursements during Q2 FY26.
Asset quality remains robust with gross non-performing assets (GNPA) stable at 1.24% and 1-day past due (DPD) improving to 3.99%.
Net profit for Q2 FY26 grew by 11% year-on-year, driven by an 18% growth in net interest income.
The company is expanding its branch network, with plans to add 20 to 25 branches in the second half of the year, enhancing its presence in Tamil Nadu and other regions.

Negative

The cost-to-income ratio remains relatively high at 43.7%, although it has shown some improvement.
Incremental business yields are lower than the existing portfolio, leading to a slight compression in overall yields.
There are localized asset quality pressures in specific regions such as Karnataka and Madhya Pradesh, requiring cautious monitoring.
Employee attrition remains a challenge, although it has improved slightly compared to the previous year.
The company faces competitive pressures in maintaining its pricing strategy amidst a potential softening of interest rates.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

AVAS.NS - Aavas Financiers Ltd
Q2 2026 Aavas Financiers Ltd Earnings Call
Nov 11, 2025 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to the Aavas Financial Limited Q2 FY26 earnings conference call.

This would call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call.

These statements are not the guarantees of future performance and in uncertainties that are difficult to predict.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for since after the presentation concludes.

They need assistance to ring the conference call.

Please signal an operator by pressing star, then 0 on the touchstone phone.

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