Aavas Financiers Limited — Q1FY27 earnings call summary

Filed 21 July 2026 · Company audio recording

Spread moderated to 5.06% in Q1; yield compression from higher HL mix expected but offset by cost and income levers.
Competitive pressure expected to compress spreads below 5% in FY27.
Spread expected to compress below 5% for FY27; management confident of maintaining ROA and ROE via operating leverage.
Medium-term AUM growth target at 20%; FY27 guidance at 17-18% AUM growth and 22-23% disbursement growth.
Strategic emphasis on regaining home loan market share with 38% YoY HL volume growth in Q1.
Cost-to-income ratio improved 254 bps YoY to 43.7%, driven by operating efficiencies.
Cost of funds reduced by 38 bps YoY to 7.74%; passed on 25 bps PLR cut since March 2026.
Continued branch expansion with 440 branches across 15 states; focus on faster break-even and branch profitability.