Aavas Financiers AUM crosses ₹25,000 crore as Q2 profit rises 11%

Aavas Financiers Limited, a Jaipur-headquartered housing finance company, said on 1 November 2026 that its assets under management (AUM) had crossed ₹25,000 crore. The company said in a press release filed with the BSE under Regulation 30 of the SEBI (LODR) Regulations, 2015, that the milestone follows AUM of ₹24,801 crore at 30 September 2026. That figure was up 16.1% year on year.

The company said it has served more than 3.8 lakh families since inception through a network of 443 branches and more than 7,500 permanent employees. Managing director and chief executive Manu Singh said the number of households served remains the company's main measure of success, not only the size of the loan book.

Q2 FY27 results and margins

The milestone came a few days after the company released its September quarter and half-year results on 26 October 2026. Standalone net profit rose 10.73% year on year to ₹181.52 crore from ₹163.93 crore. Revenue rose 10.39% to ₹736.30 crore from ₹667.02 crore.

Disbursements in the quarter were ₹1,891 crore, up 21% year on year. For the first half of FY27, disbursements totalled ₹3,506 crore, a 30% rise. Gross non-performing assets stood at 1.11% and net non-performing assets at 0.70%.

Yield on the loan book fell to 12.66% from 13.08% a year earlier, while borrowing cost held at 7.64%. That left a spread of 5.02%. Net interest margin rose 11 basis points quarter on quarter to 7.81%, which the company attributed to stable borrowing costs and risk-adjusted pricing. The cost-to-income ratio fell 195 basis points year on year to 42.2%.

What investors will watch

The company has set a FY27 AUM growth target of 16% to 17%. It has also outlined a long-term ambition of ₹50,000 crore in AUM, with growth above 20% over the long term. It said it expects to cross ₹25,000 crore in October and is now framing its next phase around ₹50,000 crore... more precisely, a ₹500 billion AUM milestone, for which no date was disclosed.

On rates, the company said the Reserve Bank of India's 25 basis point repo rate increase will raise its borrowing costs. It said it remains confident of keeping spreads above 5%. Investors will be looking at whether that holds in coming quarters as yields and funding costs move.

The company's stated long-term product target is a 65% home loan and 35% non-home loan mix. Top-ups account for about 5% of disbursements. Management has also said it will invest in distribution, operational efficiency and digital transformation while keeping asset quality and governance in focus.

Commentary on the results has pointed to a simple test for the coming quarters. Faster AUM growth needs to come with stable asset quality and profitability. As the loan book expands, the company's underwriting standards will be the main thing to watch. The company's third-quarter FY27 results date has not yet been announced.