Aavas Financiers Stock Price Gains 6% On Strong Q2 Earnings; Profit Rises 10.8% YoY

Mumbai, November 12, 2025 – Investors are showing heavy interest in the shares of Aavas Financiers Limited today. As of 11:10 AM IST, the share surged 6.12% to ₹1,718.30 against its previous close of ₹1,619.20. The rise was acknowledged as investors cheered the company’s robust September-quarter results, marked by double-digit profit and interest income growth. The stock opened at ₹1,645.00 and touched an intraday high of ₹1,742.40. It reflects a strong buying interest after the company posted steady earnings momentum.

Quarterly Performance (Q2FY26 YoY)

The company had a strong net profit of 10.8% year-on-year at ₹163.9 crore as reported in its second quarter results as of September 2025. Net interest income rose 19.2% to ₹288.1 crore, driven by a healthy increase of 16% in assets under management. Margins improved too; spreads expanded by 34 basis points, while net interest margin was 7.81%.

Disbursements experienced strong growth of 21% year-on-year, mainly due to demand from the affordable housing segment. The bank’s operational efficiency also improved as its cost-to-income ratio decreased to 43.7%. The asset quality of the bank remained stable and returns improved, with ROA at 3.40% and ROE at 14.31%.

Management’s Outlook

Mr. Sachinder Bhinder, Managing Director & CEO, stated that the strategy focuses on Tier 2 to Tier 5 markets. It was identified as an underserved and underbanked sector that continues to yield positive outcomes. Disbursements grew 36% QoQ, supported by strong demand for housing. The cost of borrowing has dropped 17 bps QoQ to 7.85% which continues to help the company maintain healthy spreads greater than 5%.

The company also started seeing operational benefits from its tech transformation and sustainable practices, with turnaround timelines improving to 6 days, and paper consumption has been reduced by 59%. Mr. Bhinder also stated that Aavas remains well-capitalized with a CRAR of 46.4% and continues to have a credit cost sustainably below 25 bps.

Aavas Financiers Limited is an affordable housing finance company headquartered in Jaipur, established in 2011. It focuses on the retail segment by providing loans for low and middle-income self-employed customers in semi-urban and rural parts of India. The company operates across 14 states in India and has 405 branches as of September 2025. The company’s products include home loans, loans against property, and MSME loans.

REF: https://nsearchives.nseindia.com/corporate/AAVAS_11112025173141_Investorrelease.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations