Aavas Financiers Q2 Results: Profit Rises 11% to ₹182 Crore, AUM Up 16% to ₹24,801 Crore

Aavas Financiers Q2 results landed on the evening of October 26, and they’re steady rather than flashy. The Jaipur-based affordable housing lender posted a September-quarter net profit of ₹182 crore, up 10.75% from ₹164 crore a year ago, according to CNBC-TV18’s results liveblog. Net interest income rose 10.1% to ₹431 crore from ₹391 crore.

The company’s own investor release filed with NSE reports on the half year, and that’s where most of the detail sits.

Aavas Financiers Q2 results and the half-year scorecard

For April to September 2026 (H1 FY27), compared with the same six months last year:

• Assets under management: ₹24,801 crore (₹2,48,011 million), up 16.1%.
• Disbursements: ₹3,505 crore, up 29.6%. In the September quarter alone, disbursements grew 21% to ₹1,890 crore (Rs 18.9 billion).
• Net interest income: ₹682.5 crore, up 16.7%.
• Net profit: ₹352.8 crore, up 16.4%.
• Net worth: ₹5,398.5 crore, up 15.4%.
• Cost to income: 42.95% against 44.90%, an improvement of 195 basis points.

Put the quarter next to the half year and one thing stands out. Profit and NII grew roughly 16-17% over six months but only about 10-11% in the September quarter, as CNBC-TV18 reports it. So the April-June quarter did more of the lifting. The liveblog and the company release may also not define NII the same way, so we wouldn’t read too much into the gap.

Asset quality stays clean

This is the part housing finance investors usually check first. Gross NPA came in at 1.11%, 13 basis points better than a year ago, and net NPA at 0.70%, an improvement of 16 basis points. Loans overdue by a day or more (1+ DPD) stood at 3.81% against 3.99%. Credit costs for the quarter held at 24 basis points, which the company says is within its guided range.

Margins held up too. Net interest margin, measured on average total assets, was 7.76% for the half year, down 5 basis points year-on-year, but the September quarter alone came in at 7.81%, up 11 basis points from the June quarter. Borrowing costs stayed at 7.64%. Return on assets for the quarter improved to 3.28% and return on equity to 13.63%.

What management is aiming for

CEO Manu Singh said in the release that AUM should cross ₹25,000 crore (Rs 250 billion) this month and set a longer-term milestone of ₹50,000 crore. Management wants AUM growth to reach 20%, up from the current 16.1%. The branch network now stands at 443 across 15 states.

Our take: disbursements growing at 21-30% while AUM grows at 16% is the gap to watch. If faster lending keeps up and repayments stay where the company expects them, that 20% target looks reachable. If disbursement growth cools, it won’t. For lenders, it also helps to read results the way we lay out in our guide on how to analyse quarterly results. For a comparable small lender, see our note on SBFC Finance’s Q2 numbers, and for the wider picture, our Q2 FY27 earnings roundup.

Source: Aavas Financiers investor release (NSE filing, October 26, 2026); CNBC-TV18 Q2 results liveblog.

Disclaimer: This article is for information and education only and is not investment advice. Please consult a SEBI-registered adviser before making any investment decision.