Aavas Financiers Limited (AAVAS)
Large CapFinancial Services stocks · Large cap · NSE
Aavas Financiers Ltd. is a housing finance company focused on the EWS & LIG segments, operating across 15 states/UTs with 440 branches, 80%+ in Tier 3+ towns. It emphasizes an in-house execution model and technology-driven processes for retail loans.
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 30 Jun 2026
Good · 55/100Rev +13% YoY · PAT +23% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹709 Cr | +12.9% | -0.8% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹171 Cr | +23.0% | -6.0% |
| PAT margin | 24.1% | +199 bps | -133 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
AAVAS reports robust Q1FY27 with 41% YoY disbursement growth and 23% YoY PAT growth. AUM expanded 15.4% YoY, while asset quality improved with GNPA at 1.11% and NNPA at 0.71%. NIM improved 22 bps YoY to 7.70%.
The company delivered strong Q1FY27 results, driven by robust disbursement growth and improved operating efficiency. Asset quality remains pristine, and management's focus on productivity and technology is yielding early benefits. Sustained high-teens AUM growth and further operating leverage are key.
AUM by Segment (Jun-26)
Latest issuer-disclosed distribution across 3 reported categories.
Home Loan Segment Growth
Healthy 38% YoY growth in the Home Loan segment.
Customer Acquisition & Productivity
Priorities include accelerating customer acquisition, improving productivity, and driving higher revenue per resource.
Operating Leverage
Focus on increasing operating leverage and enhancing branch profitability.
Technology & Data Analytics
Embed technology and data analytics in growth.
Branch Network Expansion
Expanded our network to 440 branch locations.
Volume Pickup
Performance driven by a strong pickup in volumes.
Resource Productivity Improvement
Meaningful improvement in resource productivity.
Execution Strategy Benefits
The quarter reflects the early benefits of our focused execution strategy.
Green Housing Leadership
Cumulatively funded over 700 green homes, establishing leadership in the green housing segment.
Fluctuations in Earnings
Future business prospects are subject to risks and uncertainties regarding fluctuations in earnings.
Ability to Manage Growth
Risks and uncertainties include the company's ability to manage growth.
Competition
Future business prospects are subject to risks and uncertainties regarding competition (both domestic and international).
Government Policies and Regulations
Risks and uncertainties include government policies and actions regulations.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
YoY comparison is crucial for assessing growth trends and seasonal impacts, while QoQ provides insight into sequential momentum, particularly for disbursements, AUM additions, and efficiency improvements.
AUM Growth
AUM grew by 15.4% YoY to Rs. 239.3 bn as on Jun-26.
Disbursements Growth
Disbursed loans worth Rs. 16.1 bn, delivering robust growth of 41% YoY.
Net Interest Margin (NIM)
NIM improved by 22-bps YoY to 7.70%.
Cost of Borrowing (CoB)
Cost of Borrowing (CoB) was 7.64% in Q1FY27.
Strategic Priorities
Priorities are accelerating customer acquisition, improving productivity, driving higher revenue per resource, enhancing branch profitability, and increasing operating leverage.
AUM Growth Target
Focus on driving AuM growth to high-teens.
Execution & Governance
Embedding greater execution focus, discipline, and rigor into every layer of the business, underpinned by a firm commitment to strong governance.
Portfolio Quality Commitment
Reinforce 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 | 15.4% YoY | Sustained high-teens AUM growth. |
| Net Interest Margin (NIM) | 7.70% | Continued improvement or stability in margins. |
| Asset Quality (GNPA/NNPA) | 1.11% / 0.71% | Maintenance of pristine asset quality. |
| Cost-to-Income Ratio | 43.7% | Further improvement in operational efficiency. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
32BearishSMA20 -6.0% / mo · MACD −
Technical chart
AAVASdaily · 1Y · AUTO+6.5%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 42. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~6.4% over last month) — short-term momentum negative.
- RSI(14) at 42 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 26% off 52W high · 23% 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.
Relative Strength & Trend Stage
- 24.9% below the 52-week closing high after prior strength.
- The 30-week proxy has stalled (-1.0% over 20 sessions).
- Price has not yet confirmed a full Stage 4 downtrend.
Valuation & score drivers
U-Score 26 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 26 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
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 24.2%.
- Growth contributes 15/25 to the score.
- Quality contributes 6/20 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: +2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
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 21st 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: 21st pctile, median 62 · Large: 7th pctile, median 73
142 documents have extracted text, 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 0.88.
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 21.10
- P/B
- 2.73
- EV/EBITDA
- 689.09
- Market Cap
- 10342.00Cr
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
- 0.88
- 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
- 35%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Financial Services, ranked by similarity
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.