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

rs,

this opportunity to express my sincere gratitude to the visionary leadership of our former promoters, Kedaara Capital and Partners Group. Under their stewardship, what began as an ambitious proof of co

17%

over quantity. On the demand front, we are encouraged by strong traction. Logins volume grew by 17% Y-o-Y, indicating a robust underlying housing demand. In markets where we hold a higher share, we

35 bps

tion of demand. Our strategic focus remains on optimizing yield and credit quality. We achieved a 35 bps Y-o-Y improvement in the yield this quarter, driven by targeted initiatives to enhance portfolio m

16%

mix and pricing. Recent trends are encouraging. Disbursement growth in July reached approximately 16% Y-o-Y, demonstrating positive momentum and reinforcing our confidence in gaining further traction

Rs. 5 lakh

e to see a better risk reward profile. Additionally, our strategy to focus more on loans exceeding Rs. 5 lakhs, which typically exhibits stronger asset quality trends and portfolio behavior. Government initi

Rs.15

that 450 Aavas customers have benefited from these schemes, receiving subsidies totaling more than Rs.15 mn. We also want to acknowledge the NHB for its continued leadership in promoting transparency, g

20 %

ion in Q1. Based on the current trends, we now expect the full year’s growth in the range of 18 to 20 %. While we remain confident of a rebound starting Q2, we will have better visibility on overall gro

Rs. 207

rough our quarterly performance. We have delivered an AUM growth of 16% Y-o-Y, reaching an AUM of Rs. 207 bn. During Q1FY26, we disbursed loans worth Rs. 11.5 bn, maintaining our focus on quality originat

Rs. 11.5

an AUM growth of 16% Y-o-Y, reaching an AUM of Rs. 207 bn. During Q1FY26, we disbursed loans worth Rs. 11.5 bn, maintaining our focus on quality origination. Our net profit for Q1FY26 grew by 10% Y-o-Y to

10%

rth Rs. 11.5 bn, maintaining our focus on quality origination. Our net profit for Q1FY26 grew by 10% Y-o-Y to Rs. 1.4 bn, led by robust 16% Y-o-Y growth in NII on account of healthy improvement in sp

Rs. 1.4

bn, maintaining our focus on quality origination. Our net profit for Q1FY26 grew by 10% Y-o-Y to Rs. 1.4 bn, led by robust 16% Y-o-Y growth in NII on account of healthy improvement in spreads. Our net wor

22 bps

position driven by consistent compounding internal accruals. Our spread improved sequentially by 22 bps to 5.11%, while our calculated spread rose by 16 bps to 6.03% in Q1FY26. Reported NIMs expanded by

“Based on the current trends, we now expect the full year’s growth in the range of 18 to 20 %.”

“I'm also pleased to share that we are entering a new state, Tamil Nadu and all 10 of these upcoming branches will be located there.”

“Credit costs remained with the guidance of 24 bps.”

“We continue to maintain our guidance of keeping credit costs below 25 bps on a sustainable basis.”

“We expect continued downward pressure on our overall cost of funds as we scale up borrowing through these channels.”

“And with credit performance well under control, we expect growth to start picking up in the coming quarters.”

“So, would this have the recurring effect over the next 2, 3 quarters and for the entire fiscal as well or do we expect that whatever business maybe we were not able to book it in 1Q, that would happen in 2Q and 3Q, and we could see a relatively higher run rate of disbursements over the next 2 quarters?”

“And just to clarify, this 18% to 20%, which you highlighted for FY26, that was with respect to disbursement growth or AUM growth?”

“Sir, which pockets are the, if you could highlight that will be very helpful.”

“Is that the same thought process we also have that PLRs will be reviewed sometime in the third quarter?”

Sachinder Bhinder

31

Moderator

9

Shreepal Doshi

5

Chintan Shah

5

Harshit Toshniwal

5

Sanket Chedda

5

Ghanshyam Rawat

4

Kunal Shah

4

Abhijit Tibrewal

4

Bhavesh Kanani

3

Rakesh Shinde

Ladies and gentlemen, good day, and welcome to the Aavas Financiers Limited Q1FY26 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 date of this call. These statements are not guarantees of future performance, involve 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 a touch-screen phone. Please note that this conference is being recorded. I would now hand the conference over to Mr. Rakesh Shinde, Head, Investor Relations of Aavas Financiers Limited. Thank you, and over to you, sir. Thank you, Muskan. Good evening, everyone. I extend a very warm welcome to all participants and than

Sachinder Bhinder

Thank you, Rakesh, and good evening. Thank you all for joining us this evening. I truly appreciate your presence and continued support. Q1FY26 was a landmark quarter for Aavas, marking a pivotal moment in our journey. We successfully concluded the change in the promoter process and are proud to welcome CVC Capital Partners as a new promoter. The trust and conviction shown by CVC in Aavas is a strong testament to the strength of our franchise and the vast opportunity in the affordable housing finance sector in India. Their global perspective, institutional depth and strategic insight will position Aavas to accelerate into its next phase of growth and innovation. I would like to take this opportunity to express my sincere gratitude to the visionary leadership of our former promoters, Kedaara Capital and Partners Group. Under their stewardship, what began as an ambitious proof of concept has grown into a scalable institution, one that has transformed lives and made affordable homeownershi

Ghanshyam Rawat

As of 30 June 2025, total outstanding borrowing stood at Rs. 182.86 bn. The borrowing mix as of 30 June 2025 comprised of 49% from term loan, 25% from assignment, 14% for NHB refinancing, 11% from debt capital market. T- We have 38% borrowing linked to external benchmarks such as the repo, Bill and MIBOR, 20% linked to sub-3-month MCLRs, enabling faster repricing of nearly 58% of our total borrowing in line with the interest rate movements. Lender support remains strong as Aavas continue to evolve. We maintain access to diversified and cost-effective long-term funding. Our relationship with development financial institutions remains robust, supporting our strategic funding goals. As of 30 June 2025, we maintained ample liquidity, including cash and cash equivalent of an unavailed cash credit limit of Rs. 18.77 bn and documented unavailed sanction limit of Rs. 25.98 bn. During the quarter, our cost of borrowing declined by 22 bps Q-o-Q to 8.02%, driven by proactive liability management

Ashutosh Atre

Thank you, Ghanshyam ji. Good evening, everyone. I am pleased to share the key portfolio risk parameters with you. Aavas is strongly positioned to continue delivering industry-leading asset quality. Our asset quality remains within the guided range with 1+DPD well below 5% at 4.15% in Q1FY26 and Gross Stage 3 and Net Stage 3 under 1.25%, stood at 1.22% and 0.84%, respectively. We did observe some seasonal upticks in delinquencies during the quarter as is typical in the first quarter. However, 1+DPD levels have already shown normalization trends in July, reinforcing our confidence in the stability and resilience of the portfolio. In terms of geography, average 1+DPD and GNPA in our home state continues to remain well below 4% and 1% of AUM, respectively. Whereas some emerging states of North continue to have 1+DPD and GNPA well below 3% and 1% of AUM, respectively. Similarly, in terms of ticket size of more than Rs. 5 lakh, 1+DPD and GNPA remained well below 4% and 1% of AUM. Our total

Kunal Shah

So, when you say like July disbursements are growing at 16-odd percent. So, what is the run rate now in terms of the absolute number?

Sachinder Bhinder

So, on a run rate, we are anywhere close to Rs. 600 crores, if I were to really put that in perspective, Rs. 550 crores to Rs. 600 crores is the current run rate, which is there.