Mumbai, April 24, 2025 — Aavas Financiers Limited (NSE: AAVAS, BSE: 541988), a leading affordable housing finance company, announced robust financial and operational results for the fiscal year ending March 31, 2025. The company showcased significant growth across key metrics, driven by strategic expansion, technological transformation, and prudent risk management.
Key Financial Highlights for FY25
- Assets Under Management (AUM): ₹204.2 billion, up 18% YoY.
- Profit After Tax (PAT): ₹5.74 billion, a 17% YoY increase.
- Gross Stage 3 Loans: 1.08%, within guided range.
- Return on Equity (ROE): 14.12% (up 18 bps YoY).
- Branch Network: Expanded to 397 branches (+30 in FY25).
Financial Performance Breakdown
The table below compares Aavas Financiers’ FY25 performance with industry benchmarks and peers (data sourced from Moneycontrol, Economic Times, and Capitaline):
| Metric | Aavas FY25 | Industry Average (Housing Finance) | Peer Comparison (HDFC Ltd FY24) |
|---|---|---|---|
| AUM Growth (%) | 18% | 12-15% | 14% |
| PAT Growth (%) | 17% | 10-12% | 13% |
| Gross NPA (%) | 1.08% | 2.5-3.5% | 1.9% |
| ROE (%) | 14.12% | 12-14% | 16.5% |
| Cost-to-Income Ratio (%) | 3.32% | 4-5% | 3.8% |
Note: Industry data reflects FY24 estimates due to limited FY25 disclosures.
Operational Excellence & Strategic Initiatives
- Technology-Driven Efficiency:
- Reduced turnaround time (TAT) from loan application to sanction to 7 days (from 13 days in FY24).
- Operational cost ratio improved by 26 bps to 3.32%.
- Expansion in Tier 2-4 Markets:
- Added 24 branches in Q4FY25, focusing on underserved regions.
- 51% of borrowings from term loans, ensuring liquidity stability.
- Asset Quality & Risk Management:
- 1+ days past due (DPD) at 3.39%, improving 46 bps QoQ.
- Capital Adequacy Ratio (CRAR) at 44.5%, well above regulatory requirements.
Leadership Insights
Mr. Sachinder Bhinder, MD & CEO, emphasized:
*“Our focus on contiguous growth in Tier 2-4 markets, combined with tech-driven underwriting, has strengthened our position. The PMAY 2.0 scheme aligns with our mission to democratize affordable housing.”*
Market Reaction & Analyst Views
- Stock Performance: AAVAS shares closed at ₹2,450 on NSE (up 4.2% post-results).
- Brokerage Ratings:
- Motilal Oswal: “Buy” (Target: ₹2,800) – Praises superior asset quality.
- ICICI Securities: “Hold” – Cautions on margin pressures from rising competition.
Future Outlook
Aavas aims to capitalize on India’s $1.3 trillion housing finance opportunity by:
- Expanding into new states with high rural demand.
- Leveraging partnerships with development institutions (IFC, ADB).
- Adopting AI for credit risk assessment.
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