Aavas Financiers Limited — Q4 FY26
Aavas Financiers reported a solid Q4 FY26 with net profit of ₹1.82B (+18% YoY) and revenue of ₹234.5B (+15% YoY).
bullish
medium
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.
64%Questions answered2Evaded / deflected11Questions audited
Answered
High priority
What is the medium-term growth outlook and target for FY27/28?
Asked by Renees Bua, ICICI Securities
Management gave a specific AUM growth target of 20%+.
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Question
how do you think about you know the sector's medium-term growth and where does our stand in terms of growth outlook and maybe what is your exponential growth target for 27 and 28
Manu (Management)
Our aspiration clearly is to consistently deliver uh 20% plus AUM growth largely to outperform industry.
Evasive
High priority
Where do you see ROE settling, given acquisition and opex?
Asked by Renees Bua, ICICI Securities
Management did not provide a specific ROE target or range.
no number givenvague reference to 'high teams'
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Question
where do you see RO settling right I mean the acquisition obviously is also linked to yields opex optimization etc from a exit 15% roe where do you see are we also moving
Manu (Management)
I think high teams is where our eyes are very clearly set on return on equity.
Answered
High priority
Where will spreads settle given further repo cuts?
Asked by Renees Bua, ICICI Securities
Management gave a specific spread target of 5%+.
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Question
why do you see ultimately spread settling right I mean otherwise ROA will again moderate
CFO (Management)
we reached a spread of 5.2% basically as Manu mentioned ... we are very confident to maintain the 5% plus.
Answered
High priority
Will branch expansion focus on new states and how to improve productivity?
Asked by Kunal Sha, City Group
Management specified states and quantified productivity improvement potential.
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Question
do we see that a larger part of the expansion would be coming in these states in terms of the branches and even in terms of the uh incremental growth ... what are the initiatives we are taking to ensure productivity increases
Manu (Management)
we are continuously focused on adding branches in states like Maharashtra, Gujarat, Tamil Nadu ... productivity ... can be moved up 15 20% by concentrating on every branch productivity end to end
Partial answer
Medium priority
Have you started risk-adjusted pricing and when will it be fully rolled out?
Asked by Kunal Sha, City Group
Management confirmed start but did not give a completion timeline.
no timeline for full rolloutvague 'already started'
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Question
have we started increasing in any of the product segments ... when would that journey starts in terms of the yield optimization? Has it been rolled out on a pilot basis and when do we see the full-fledged roll out?
Manu (Management)
as we speak there is no better day to start a good deal than today. So it has already started in the financial year. ... It's a journey which is already on its way.
Evasive
High priority
Why did Aavas grow below 20% in last two years while peers grew faster?
Asked by Abijit Debal, Motilal Oswal
Management did not address the reasons for past underperformance.
refused to discuss pastdeflected to future
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Question
if you look at the last two years we were growing below 20%. So if you could first articulate where was the problem when peers with larger balance sheets were able to grow upwards of 20%.
Manu (Management)
every human being including me becomes wiser in hindsight ... looking progressively ahead on growth. My response would go back to the earlier two questions that we are focused on sustainable growth.
Answered
High priority
Will moving to higher yields increase risk and credit costs?
Asked by Abijit Debal, Motilal Oswal
Management explicitly denied any increase in risk and reaffirmed credit cost guidance.
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Question
Are we now planning to move to a slightly different customer segment or a product segment? This would mean while the risk adjusted deals go up or the yields go up commensurately the risks also go up
Manu (Management)
increase of yield by no manner suggests increase of risk. ... We continue to maintain our guidance on trade costs.
Partial answer
Medium priority
Is yield decline due to competition and are larger HFCs entering your segment?
Asked by Gorav Kandelwal, JP Morgan
Management explained yield decline but avoided discussing competitive dynamics from larger HFCs.
did not directly address HFC entryattributed decline to PLR cut
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Question
20 basis points decline in yields in fourth quarter ... is it largely a function of the other part of the yield declining because of competition being too high ... are you seeing some of the bigger HFC's now trying to enter into some of the ticket sizes zip codes that you operate in?
CFO (Management)
quarter 4 has a impact of we are reduced 15 basis point PLR ... competition comes in that quarter ... but for the full year we don't see a competition which has a impact on yield placement.
Partial answer
Medium priority
Where will opex to AUM settle and what tech efficiencies are being implemented?
Asked by Gorav Kandelwal, JP Morgan
Management gave a long-term target but no near-term outlook and did not elaborate on tech.
no near-term guidancetech efficiencies not detailed
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Question
if I look at cost to assets or costs to AUM in last three years that had been declining but FY26 it's moved up again ... where do we see this number settling and also could you highlight some of the use cases on tech led efficiencies?
CFO (Management)
once we reach the double size of the balance sheet it will be somewhere 2.75 5% opex to ratio.
Partial answer
High priority
Why are loan volumes flat despite branch and employee expansion?
Asked by Raja, Ambbit Capital
Management acknowledged the issue but did not provide quantitative improvement plans.
no specific volume targetcited April improvement without numbers
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Question
the total number of loans are flat ... in home loans in fact you've declined on a yoy basis in terms of volume ... what are you doing to improve that?
Manu (Management)
this is an area of immediate attention ... numbers in April has been for us quite effective ... sharper execution focus should start sweating these assets out.
Answered
Medium priority
Can opex to assets go below 3% on a steady state basis?
Asked by Raja, Ambbit Capital
Management gave a clear target of below 3% opex ratio.
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Question
what kind of levels do you see yourself achieving there not just for FY27 but on a steady state basis can it go below 3%.
Manu (Management)
on a two to three years platform yes we will we are shooting for something below 3%.
Answered
Low priority
Is further investment needed in technology and digital platform?
Asked by Sri Palooshi, IQira Securities
Management clearly stated no major further tech investment needed.
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Question
do you feel that there is further investment required on that front to make it more aligned with the industry requirement and also to bring down the overall functioning?
CFO (Management)
most of the capitalization has been done we are not seeing any further investment in the entire model ... nothing majors on the tech and digital side.