AAVAS
Large CapAavas Financiers Limited
Financial Services
Aavas Financiers is an Indian housing finance company focused on affordable housing for underserved segments. It operates 435 branches across 15 states/UTs, with over 80% in Tier 3+ towns. The portfolio is 99.5% retail, with 65% housing loans and 61% self-employed customers, maintaining an average LTV of 55.4%.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 55/100Rev +12% YoY · PAT +18% YoY · +6% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹715 Cr | +12.4% | +6.1% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹182 Cr | +18.2% | +7.1% |
| PAT margin | 25.4% | +124 bps | +23 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
AAVAS reported robust Q4FY26 with disbursements up 36% QoQ and net profit up 18% YoY, driven by strong NII and NIM expansion. FY26 saw 15% AUM growth and improved asset quality, with GNPA at 1.05% and 1+DPD at 3.17%.
The company demonstrated strong operational momentum in Q4FY26, with significant sequential growth in disbursements and NIM expansion. Full-year FY26 results show healthy AUM growth and continued improvement in asset quality, supported by strategic branch expansion and technology adoption. The new promoter and credit rating upgrade are positive signals.
AUM by Segment (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Branch Network Expansion
Added 38 branches in FY26, reaching 435, with 80%+ in Tier 3+ towns, expanding to Tamil Nadu.
Technology & AI Adoption
Significant investments in LOS, LMS, ERP, CRM, with AI-driven checks and digital agreements improving efficiency.
Diversified Customer Base
Focus on self-employed (61% of AUM) and affordable housing (<₹1.5 Mn ticket size for 83% of loans).
Geographical Diversification
Reducing concentration in top 3 states, with contiguous branch expansion strategy.
Branch Network
Added 38 branches in FY26, including 20 in Tamil Nadu, bringing total to 435 branches.
Green Homes
Added 300+ certified Green Homes during FY26, with a cumulative total of 650+.
Credit Rating Outlook Upgrade
ICRA & CARE upgraded the long-term credit rating outlook to Positive in March 2026.
New Promoter
CVC Capital Partners, a global private market manager with >€200 bn AuM, joined as a promoter.
Diversified Funding
Secured ~₹9.8 bn from Asian Development Bank (ADB) and ~₹5.0 bn through AAA-rated PTC securities.
PLR Reduction Impact
A 15 bps reduction in PLR effective March 2026 contributed to a 14 bps QoQ reduction in spreads.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
QoQ comparison is crucial for assessing sequential momentum in disbursements, NIM, and asset quality trends, which are key for NBFCs. YoY provides a broader view of annual growth and performance against seasonal factors.
AUM Growth
FY26 AUM grew 15% YoY to ₹ 234.5 bn.
Disbursements
Q4FY26 disbursements were ₹ 23.48 bn, up 36% QoQ and 16% YoY. FY26 disbursements were ₹ 67.75 bn, up 11% YoY.
NIM
Q4FY26 NIM improved 44 bps QoQ to 8.45%. FY26 NIM expanded 29 bps YoY to 7.93%.
Cost of Borrowing
FY26 CoB reduced 62 bps YoY to 7.62%. Q4FY26 CoB was 7.62%, down 6 bps QoQ.
Commitment to Sustainable Housing
Added 300+ certified Green Homes in FY26, bringing the cumulative total to 650+.
Maintaining Pristine Asset Quality
Management states 1+DPD at 3.17% (Mar-26) is among the lowest in the industry.
Discipline of Risk Architecture
Outcomes reflect the discipline of their risk architecture, including the underwriting framework.
Building Quality Portfolio
Reinforces commitment to building a portfolio anchored in quality, resilience, and prudent risk-adjusted returns.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AUM Growth | 15% YoY (FY26) | Sustained double-digit growth rate. |
| Asset Quality (1+DPD) | 3.17% (Mar-26) | Continued stability or further improvement. |
| NIM | 8.45% (Q4FY26) | Stability or expansion despite interest rate environment. |
| Branch Expansion Pace | 38 branches added in FY26 | Continued strategic expansion into new geographies. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -2.0% / mo
Technical chart
AAVASdaily · 1Y-22.4%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 33.
- SMA20 falling (~3.1% over last month) — short-term momentum negative.
- RSI(14) at 33 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 29% off 52W high · 19% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 38.4%.
- Growth contributes 15/25 to the score.
- Valuation contributes 9/30 to the score.
Main drags
- Altman Z is 0.9, in distress territory.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
- Cash flow is weaker at 0/10; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 13th percentile of the scored universe and 25th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-1987 Cr.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Financial Services: 25th pctile, median 62 · Large: 8th pctile, median 74
147 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-1987 Cr.
- ▸Debt/equity is 3.29.
- ▸Altman Z is 0.87.
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 20.30
- P/B
- 2.64
- EV/EBITDA
- 677.45
- Market Cap
- 9958.00Cr
Profitability
- ROE
- 13.90%
- ROCE
- 9.91%
- ROA
- 2.97%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 23.00%
- EPS 5Y
- 23.00%
- Revenue 3Y
- 22.00%
- EPS 3Y
- 19.00%
Balance Sheet
- Debt/Equity
- 3.29
- Interest Coverage
- —
- Altman Z
- 0.86
- Book Value
- 477.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -1987.00 Cr
- EPS TTM
- 62.00
Shareholding
- Promoter Hold
- 48.88%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 19%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.