Aavas Financiers Limited — Q2 FY26
Aavas Financiers reported a strong Q2 FY26 with PAT of ₹164 crore, up 11% YoY, driven by robust NII growth of 18% YoY and improved spreads.
bullish
high
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
68%Questions answered1Evaded / deflected11Questions audited
Partial answer
High priority
Why is yield falling and when will it stabilize?
Asked by Res, ICICI
Explained drivers but did not give a specific yield stabilization timeline or number.
no specific yield target givendeferred to ELCO review
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Question
while spread expanded for last two quarters but it is largely driven by cost of fund benefit and yield continues to fall... when do you see the yield settling and ultimately spread?
Romesh (management)
incremental business is still lower than our existing portfolio which naturally pulls on the blended portfolio and this has been the key driver of the five bps compression during the quarter.
Partial answer
High priority
When will cost-to-income ratio reach industry average?
Asked by Res, ICICI
Answered with a different metric (opex/asset) and no specific timeline for cost-to-income.
no timeline for cost-to-income targetreframed to opex-to-asset ratio
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Question
our cost to income is still around 41-42% versus peers below 35%... when do you see this cost to income ratio tagging towards industry average?
Romesh (management)
we've actually guided that we are committed to bringing the opex to asset ratio below 3% over the medium term.
Answered
Medium priority
Why are assignment volumes high and what is the spread?
Asked by Nina Kuna, City Group
Provided specific growth range and spread improvement in bps.
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Question
overall when we look at it compared to the assignments which were done in fact the run rate just be quite high. So is there anything maybe is it more of a demand supply thing?
Kunal (management)
we generally keep between 15 to 20% growth in the assignment in the volume... now we are doing 7 and a half% plus basically almost 100 bps saving which is giving us a better spread.
Answered
Medium priority
Has the entire impact of recognition change played out in Q2?
Asked by Nina Kuna, City Group
Clearly stated the impact is fully played out in Q2.
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Question
this entire impact of uh maybe the change in the recognition which was there has it played out in Q2 itself the entire rollover effect or there will be something which will flow through in Q3?
Romesh (management)
whatever was on the Q1 the it has played out in Q2 and we don't see any of that really coming in the coming quarters so to say.
Partial answer
Medium priority
Any pressures in particular states or customer profiles for BT out?
Asked by Nina Kuna, City Group
Acknowledged increase but did not pinpoint specific geographies or segments.
no specific state or customer profile mentioned
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Question
VT out is now 5.7 and if you look at across the product segment it seems like it has gone up a bit on the home loan... any pressures in any particular states or with any particular customer profile?
Romesh (management)
BT out rate for H1 stands at about 5.3% which is around 10 bps higher than the same period last year... we don't see anything this is on alarming side.
Answered
High priority
Any localized pain from MFI spillover or tariff impacts?
Provided specific percentage and named affected states.
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Question
some of the industry players have called out localized pain... is there anything that we are seeing at our end?
Romesh (management)
less than 1.8% of AUM would be impacted by those tariff related items... states like Karnataka, Madhya Pradesh and Gujarat had some part of tariff industry related disruptions.
Answered
High priority
What changes support the aspirational target of 55,000 cr by FY30?
Provided a clear breakdown of growth drivers with percentages.
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Question
what are the other changes that you are making right which kind of makes you put out that aspirational target of getting to 55,000 cr on a 20% plus annual growth?
Romesh (management)
18% will be driven by branch expansion... 7 to 8% comes from productivity enhancement and 5% is expected from inflation increase in ticket size.
Answered
Medium priority
Is BT out to other HFCs a concern?
Addressed concern with specific retention strategies.
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Question
there are a lot of balance transfers which are happening to other pure affordable HFCs as well. So is that not something which is kind of worrying us?
Romesh (management)
we've deployed predictive analytics to identify and engage with potential BT out customers proactively... inhouse sourcing model enables deeper customer relationships.
Evasive
High priority
Is everything okay with the promoter group?
Did not address the substance of the speculation, only gave a general commitment.
no specific details on promoter situationdismissed as market speculation
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Question
there have been speculations and media articles... is everything okay when it comes to our promoter?
Romesh (management)
I'm here and fully committed to Aavas and its performance and so is the Aavas board and the promoter group.
Partial answer
Medium priority
Thoughts on dividend and MP stress?
Asked by GKA, ASK Investment
Gave a general capital allocation philosophy but no specific dividend commitment or detailed MP stress analysis.
no timeline for dividendMP stress explanation was vague
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Question
I want to understand your thoughts on dividend ownership that happen and the second question was with regards to you told that you built of MPing problem.
Romesh (management)
we will need whatever we have excess capital as of now to meet our growth plans but once we reach at a level where roe versus growth is a good crossing we will start to pay back the duty to shareholders.
Answered
Low priority
How do you address employee attrition challenges?
Asked by GKA, ASK Investment
Provided specific attrition numbers and improvement trends.
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Question
how would you like to address the challenge for employee attrition?
Romesh (management)
attrition for FY25 has come down by 7 percentage points from FY24 and during Q2 FY26 is further reduced to 17% in Q2 versus 18% last year.
Partial answer
Medium priority
What is incremental lending rate in HL and MSME?
Asked by Rhino Shaloshi, Securities
Gave overall incremental rate vs portfolio but not product-wise breakdown.
did not give separate rates for HL and MSME
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Question
what is our incremental lending rate in HL and MSME?
Romesh (management)
at the overall mix level we are almost 25 basis point lower than our overall portfolio... incremental cost of borrowing is almost 60 basis point plus better than the last year.