Aavas margin leads financial-services peers as AUM nears Rs 250 billion
The standalone quarter had little contribution from other income, while management highlighted branch expansion, funding diversification and a 20% AUM-growth focus.
Filed 26 Oct 2026, 19:29 IST · after market close · AAVAS Financiers Ltd (AAVAS)
Key takeaways
- Aavas Financiers reported standalone net profit of Rs 181.52 cr, with operating profit of Rs 552.64 cr.
- Its 75.06% operating margin was 10.56 percentage points above the 64.5% median for 27 reported financial-services peers.
- Management said AUM is expected to surpass Rs 250 billion this month after the company served nearly 4.5 lakh customers.
Price around the results
Operating profit drove a clean standalone quarter
Aavas Financiers reported standalone net profit of Rs 181.52 cr on revenue of Rs 736.3 cr. Operating profit of Rs 552.64 cr and interest expense of Rs 305.34 cr shaped the reported profit profile. Other income was only Rs 0.47 cr against profit before tax of Rs 235.6 cr, so the quarter was not materially supported by that line.
Margin was well above the reported peer median
The company’s 75.06% operating margin was 10.56 percentage points above the 64.5% median among 27 financial-services peers that had reported. Aavas ranked 22nd from the bottom on this comparison, placing it above most of the reported peer set. There is no sequential or year-on-year driver data here to identify whether revenue or costs caused the margin outcome.
Management linked growth to scale, branches and funding
Management said the company expects to surpass Rs 250 billion in AUM this month after serving nearly 4.5 lakh customers, and told investors it is focused on driving AUM growth to 20%. The company said its network had expanded to 443 branches and that technology would be a critical force multiplier. Management also said it added two large funding relationships and had cumulatively funded over 800 green homes.
Results were filed after market close
The results were filed after market close on 26 October 2026. A market reaction was therefore not yet available for comparison with the stock’s post-results history.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹736 cr |
| Other income | ₹0 cr |
| Expenses | ₹184 cr |
| Operating profit | ₹553 cr |
| Operating margin (%) | 75.06% |
| Interest | ₹305 cr |
| Depreciation | ₹12 cr |
| Profit before tax | ₹236 cr |
| Tax | ₹54 cr |
| Net profit | ₹182 cr |
| EPS (₹) | ₹22.89 |
Operating margin of 75.06% compares with a Financial Services sector median of 64.50% across 27 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.61% | +0.63% |
Volume on the results session was 2.13× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects to surpass Rs. 250 billion in AUM this month after serving nearly 4.5 lakh customers.
- The company states a focus on driving AUM growth to 20%.
Expansion
- The company expanded its network to 443 branch locations.
New initiatives
- Technology is identified as a critical force multiplier for the company's growth journey.
- The company strengthened and diversified its funding franchise by adding two new large relationships.
- The company has cumulatively funded over 800 green homes to promote sustainable housing.
What to watch
- Whether AUM crosses the Rs 250 billion milestone cited by management.
- Whether the branch network moves beyond 443 locations.
- Whether operating margin remains near 75.06%.