Q3 2026 Aavas Financiers Ltd Earnings Call Transcript
Key Points
- AAVAS Financiers Ltd (BOM:541988) achieved a significant milestone by crossing a balance sheet size of INR20,000 crores during Q3 FY '26.
- The company successfully raised approximately INR975 crores, marking the largest NCD placement in its history, reflecting strong external confidence.
- AUM grew by 15% year-over-year to INR222 billion, supported by a conducive economic backdrop and stable interest rate environment.
- Net profit for Q3 FY '26 grew by 16% year-over-year to INR1.7 billion, driven by a 17% year-over-year growth in net interest income.
- Asset quality remains strong with 1+ DPD well below 5% and GNPA improving by 5 bps quarter-over-quarter to 1.19%.
- The company faced challenges in achieving its initial growth guidance of 18% to 20%, with AUM growth moderating to around 15%.
- Branch expansion has been slower than anticipated, with some consolidation observed in regions like Rajasthan and Maharashtra.
- Competitive intensity in the affordable housing sector remains high, with larger HFCs also targeting the affordable pie.
- Incremental yield has been impacted by a 15 bps PLR cut, which will affect around 70% of customers on the floating rate book.
- Employee productivity has been a concern, with workforce count remaining stable and attrition rates impacting overall productivity.
Ladies and gentlemen, good day, and welcome to the Aavas Financiers Limited 9 Months and Q3 FY '26 earnings conference call. This conference 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 guarantee of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Rakesh Shinde, Head of Investor Relations of Aavas Financiers Limited. Thank you, and over to you, sir.
Thank you, Ranish. Good evening, everyone. I extend a very warm welcome to all participants, and thank you for joining us on today's earnings call to discuss the financial and operational performance of our company for 9 months and Q3 FY '26, along with the business outlook going forward. The results and the investor presentation have been uploaded on the stock
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