Aavas Financiers in limelight

Shares of Aavas Financiers were among the top five gainers on the BSE  today, rising over 7% to hit an intraday high of Rs.1,748.30 as investors cheered the company’s steady second-quarter performance and operational improvements. The stock opened firm at Rs.1,669.90 against a previous close of Rs.1,618.35, with a VWAP of Rs.1,714.11, and a market capitalisation of about Rs.13,735 crore.

In its Q2FY26 results, the affordable housing finance company reported a 10.8% YoY increase in net profit to Rs.163.9 crore, backed by a 19.1% rise in net interest income (NII) to Rs.288.1 crore. Assets under management (AUM) expanded 16% YoY to Rs.21,356.6 crore, while disbursements grew 21% YoY and 36% sequentially to Rs.1,560 crore, indicating strong demand across semi-urban and tier-II housing markets. The company also achieved a 10-bps improvement in yields and reduced cost of borrowings by 17 bps QoQ, helping sustain spreads above 5%.

Management said that technology-driven efficiency is beginning to reflect in business metrics, with turnaround time from login to sanction halved to six days and paper usage down by 59%. Over 223 branches now operate with digital agreements, strengthening process efficiency and customer turnaround.

Analysts noted that Aavas’ operational efficiency and steady disbursement growth reaffirm its positioning in the affordable housing finance space, where credit demand remains resilient despite rate normalisation. With a well-diversified loan book, prudent risk management, and expanding branch network, the company is expected to sustain healthy growth momentum through FY26, supported by structural housing demand in non-metro markets.