Aavas Financiers Limited

Sachinder Bhinder

Managing Director and Chief Executive Officer

Ghanshyam Rawat

Chief Financial Officer

Ashutosh Atre

Chief Risk Officer

Rakesh Shinde

Head of Investor Relations

INR 200

We are proud to share that during this quarter, we achieved a significant milestone, crossing the INR 200 bn mark in AuM. This is more than just a number. It reflects our unwavering support, guidance and v

INR 20

tage Q-o-Q. During the quarter, we achieved our highest ever volumes crossing 55,000 in logins and INR 20 bn in disbursements for the first time. We have completed upgradation of all major tech platforms,

18%

ugh the quarterly performance and our assessment of the outlook. We have delivered AuM growth of 18% Y-o-Y, reaching an AuM of INR 204 bn. In Q4FY25, we disbursed loans worth around INR 20 bn, wherea

INR 204

and our assessment of the outlook. We have delivered AuM growth of 18% Y-o-Y, reaching an AuM of INR 204 bn. In Q4FY25, we disbursed loans worth around INR 20 bn, whereas in FY25, we had disbursed INR 61

INR 61.2

R 204 bn. In Q4FY25, we disbursed loans worth around INR 20 bn, whereas in FY25, we had disbursed INR 61.2 bn, a growth of around 10%. Our net profit for FY25 grew by 17% Y-o-Y to INR 5.74 bn. Our net wor

10%

ed loans worth around INR 20 bn, whereas in FY25, we had disbursed INR 61.2 bn, a growth of around 10%. Our net profit for FY25 grew by 17% Y-o-Y to INR 5.74 bn. Our net worth continues to compound q

17%

eas in FY25, we had disbursed INR 61.2 bn, a growth of around 10%. Our net profit for FY25 grew by 17% Y-o-Y to INR 5.74 bn. Our net worth continues to compound quarter after quarter at a rate of aro

INR 5.74

e had disbursed INR 61.2 bn, a growth of around 10%. Our net profit for FY25 grew by 17% Y-o-Y to INR 5.74 bn. Our net worth continues to compound quarter after quarter at a rate of around 16% Y-o-Y. Our

16%

o-Y to INR 5.74 bn. Our net worth continues to compound quarter after quarter at a rate of around 16% Y-o-Y. Our calculated spread has improved by 15 bps sequentially to 5.87% in Q4FY25. Our reported

15 bps

ompound quarter after quarter at a rate of around 16% Y-o-Y. Our calculated spread has improved by 15 bps sequentially to 5.87% in Q4FY25. Our reported NIMs expanded by 37 bps during the quarter to 8.11%.

5.87%

uarter at a rate of around 16% Y-o-Y. Our calculated spread has improved by 15 bps sequentially to 5.87% in Q4FY25. Our reported NIMs expanded by 37 bps during the quarter to 8.11%. Our focus continues

37 bps

lated spread has improved by 15 bps sequentially to 5.87% in Q4FY25. Our reported NIMs expanded by 37 bps during the quarter to 8.11%. Our focus continues to underwrite quality business with risk-adjusted

“As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.”

“It reflects our unwavering support, guidance and valuable feedback.”

“In Q4FY25, we disbursed loans worth around INR 20 bn, whereas in FY25, we had disbursed INR 61.2 bn, a growth of around 10%.”

“Our net profit for FY25 grew by 17% Y-o-Y to INR 5.74 bn.”

“As a result, our incremental business yield has gone up by 22 bps in FY25.”

“I'm happy to report we have delivered a reduction in opex to asset ratio by 26 bps Y-o-Y to 3.32% in FY25 as a result of our cost optimization strategy.”

“Credit costs improved further to 15 bps in FY25 versus 16 bps in FY24.”

“RoA remained stable at 3.27% and the RoE jumped by 18 bps Y-o-Y to 14.12% in FY25.”

“We continue to strengthen our distribution network by opening 30 new branches during the FY25.”

“Going ahead, we aim to accelerate our branch expansion strategy in the first half of FY26.”

Sachinder Bhinder

19

Ghanshyam Rawat

13

Moderator

7

Raghav Garg

7

Abhijit Tibrewal

5

Rajiv Mehta

5

Renish Bhuva

3

Nischint Chawathe

3

Shreya Shivani

2

Shweta Daptardar

2

Rakesh Shinde

Ladies and gentlemen, good day, and welcome to the Aavas Financiers Limited Q4FY25 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rakesh Shinde, Head, Investor Relations of Aavas Financiers Limited. Thank you, and over to you, sir. Good evening, everyone. I extend a very warm welcome to all participants and thank you for joi

Sachinder Bhinder

Thank you, Rakesh, and good evening, everyone, and a very happy new financial year to all of you. Thank you all for joining us this evening. I truly appreciate your presence and continued support. We are proud to share that during this quarter, we achieved a significant milestone, crossing the INR 200 bn mark in AuM. This is more than just a number. It reflects our unwavering support, guidance and valuable feedback. It also reinforces our commitment to making affordable housing finance and MSME credit more accessible to thousands of families and businesses across Bharat. Q4FY25 was marked by strong operational performance. We witnessed healthy traction in customer logins and a robust pickup in the disbursement, which grew 27 percentage Q-o-Q. During the quarter, we achieved our highest ever volumes crossing 55,000 in logins and INR 20 bn in disbursements for the first time. We have completed upgradation of all major tech platforms, which are now stabilizing. This was one of the fastest

Ghanshyam Rawat

accretive partnerships that enhance our digital channels, CSC, eMitra and Ecosystem channel partners, enabling us to tap into new customer segments, particularly new to credit and new to mortgage customers. The new PMAY 2.0 scheme ensures impact in the last mile in a more efficient way and benefit our customers immensely. The scheme aligns well with our mission to provide affordable housing finance, and we expect it to drive higher demand in the products, furthering supporting our growth and expansion across Bharat. We are committed to deliver quality and profitable business growth driven by tech- led operating efficiency and cost optimization. I'm confident that with our strong risk management practices, diversified distribution reach and execution capabilities of our time-tested team, we'll achieve our milestones and deliver value to our stakeholders. With that, ladies and gentlemen, I would now hand over to our CFO, Ghanshyam Rawat, to discuss the financial in details. Thank you, Sa

Sachinder Bhinder

Our NIM in absolute terms has increased by 14% Y-o-Y in Q4FY25 and 13% Y-o-Y in FY25. Our margin NIM as a percentage of total assets during Q4FY25 stood at 8.11% and at 7.64% during FY25. RoA for the quarter stood at 3.37% in Q4FY25 where RoE at 14.4% in Q4FY25. We are well capitalized with a net worth of INR 43.61 bn and CRAR at 44.5%. The total number of live accounts stood at 246,000+, translating into 13% Y-o-Y growth. Now I would like to hand over the line to our CRO, Mr. Ashutosh Atre, to discuss asset quality. Thank you, Ghanshyam. Good evening, everyone. I am pleased to share the key portfolio risk parameters with you. Asset quality and provisioning. Aavas is strongly positioned to continue delivering industry-leading asset quality. Our asset quality remains within the guided range with 1 day past due below 5% at 3.39% in Q4FY25. And Gross Stage 3 and Net Stage 3 under 1.25% stood at 1.08% and 0.73%, respectively. In terms of geography, average 1+DPD and GNPA in our vintage sta

Renish Bhuva

Okay. So, I mean this is also important from a spread perspective because the 70% floating rate book will continue to impact our yields going ahead. So, strategically, how will you address that?

Sachinder Bhinder

So strategically, I think it is about the disbursement yields to be really sticking out. I think that will actually help across the spreads in the falling interest rate scenario, it's about whether we'll be able to source the customer at that interest rate. The answer is yes. As a team, as management, we are fully confident about the fact of our disbursement yields, so to say. So, I think that even in the falling rate scenario, as you speak, Renish, the lowering of the cost of borrowings, we will continue to build our disbursement yield, as I spoke across on 3 parameters. One is the product type. Second is the product segment, when we say product segment is less than Rs. 10 lakhs, currently at around 32%, 33%, inch up of around 3% will really get the metrics right for us. That’s right and again to re-iterate that if you look at the 1+DPD it is a 3.85% and I think that is a good indicator for us.