Housing Finance company Aavas Financiers announced Q2FY26 results Assets under Management (AuM) of the company registered a growth of 16% to reach Rs 213.6 billion as on 30-Sep-25. Disbursements during Q2FY26 grew by 21% YoY and 36% QoQ at Rs 15.6 billion. Our Net profit for H1FY26 and Q2FY26 grew by 11% YoY to Rs 3.03 billion and 1.64 billion respectively, led by robust growth in Net Interest Income. Our spread during the quarter expanded by 34 bps YoY to 5.23% driven by our cost of borrowing improving by 30 bps YoY to 7.85%. Our NIM in absolute terms increased by 18% YoY in Q2FY26, while NIM as a percentage of total assets during Q2FY26 stood at 8.04% up 56 bps QoQ. Our Opex-to-Assets ratio saw a marginal increase of 5 bps sequentially to 3.51%, while the Costto-Income ratio declined by 262 bps quarter-on-quarterto 43.7%, reflecting improved efficiency gains. Our asset quality remains pristine, with 1+ DPD below 5%, improving by 16 bps sequentially to 3.99% as of September 2025, while GNPA levels remained stable at 1.24%. Credit costs improved sharply by 8 bps sequentially to 16 bps. driven by lower 1+ DPD flow and improvement in Stage 2 buckets. We continue to maintain our guidance of keeping credit costs below 25 bps on a sustainable basis. In terms of the borrowing mix, 50% of our borrowings are from Term Loans, 25% is from Assignment, 14% from NHB Refinancing; 11% is from debt capital market (of which 53% is from development finance institutions like IFC, CDC & ADB) and 1% from Cash Credit and CPs. Our Net Worth continues to compound steadily, growing at 16% YoY, with the strength of our capital position driven by consistently compounding internal accruals. Our ROA improved significantly by 46 bps sequentially to 3.40% and ROE improving by 175 bps QoQ to 14.31%. We added 8 branches during the quarter, taking the total number of branches stands at 405 as on 30 th Sep 2025. Sachinder Bhinder, Managing Director & Chief Executive Officer, said: “Dear All, At Aavas, we are committed to serving unserved, underserved, and underbanked customers in Tier 2 to Tier 5 markets by developing tailored financial solutions. Our focus on achieving riskadjusted returns underscores our dedication to fostering housing affordability and creating sustainable value in these communities. This period, we recorded a strong 36% QoQ growth in disbursement, reflecting sustained and broad-based demand for housing in our segment. Our sanction-to-disbursement ratio has now normalized and is now ~80%, indicating improved conversion efficiency. Our strategic priorities remain centered on optimizing both yield and credit quality. During the H1FY26, we achieved a 10-bps improvement in yields over H1 FY25, supported by targeted initiatives to enhance our portfolio mix and pricing discipline. Further, our proactive liability management has helped reduce our cost of borrowing by 17 bps QoQ, enabling us to deliver a healthy spread above 5%, at 5.23%. Following the successful completion of our technological transformation, we have begun to realize measurable improvements. As of Sep 2025, the turnaround time from login to sanction has been reduced to 6 days, a significant enhancement from the earlier peak of 13 days. Our paper usage has been cut by 59% and have rolled out digital agreements in 223 branches. Aligned with our strategy of contiguous growth, we added 8 new branches, all in Tamil Nadu, taking our footprint to 405 branches across 14 states. Aavas remains well-capitalised with a CRAR of 46.4% as of September 2025. Our strong underwriting standards and tech-enabled collection efforts have enabled us to preserve the pristine asset quality of the portfolio. As of Sep 2025, the 1+ days past due metric stands at 3.99%, while Gross Stage 3 remains contained at 1.24%. Strategic Priorities: Disciplined growth in core affordable housing markets (Tiers 2–5), contiguous-state expansion. Portfolio mix optimisation to support yield and asset quality. Continued digitisation across sourcing, underwriting, disbursement, and collections. Prudent liability management to protect spreads and liquidity.” Result PDF