1.At a Glance🏡💸

Aavas Financiers is what happens when you mix housing dreams, NBFC margins, and the risk appetite of a small-town tailor. ₹13,673 Cr market cap, ₹587 Cr PAT TTM, and a business model riding on India’s Bharat-belt credit boom. But oh boy — promoter pledge is at 54% and interest coverage whispers “please sir, may I breathe”.

2.Introduction

Picture this: you’re in semi-urban Rajasthan, where WiFi is spotty but EMI dreams are strong. That’s where Aavas Financiers thrives. Incorporated in 2011, Aavas made a name bynotlending to salaried software engineers — instead choosing to bet on the self-employed, the gig workers, and the real economy of India that’s never heard of CIBIL until it’s too late.

Now it’s 2025, and Aavas just clocked ₹628 Cr in Q1FY26 revenue (+16% YoY AUM), and ₹139 Cr in PAT. Sounds dreamy, right? Except when you zoom in — you’ll find ballooning liabilities, 0% dividend payout history, and a P/E multiple that says “I’m expensive because I can be”.

3.Business Model (WTF Do They Even Do?)

Let’s break it down for the lazy-but-curious investor:

• Core Business:Affordable housing finance for low-income and self-employed folks.
• Products:
  • Home Purchase/Construction Loans
  • Extension & Repair Loans
  • Loan Against Property (LAP)
  • MSME Business Loans
• Geography:Deep Bharat — semi-urban & rural India.
• Average Ticket Size:Small. Their clients won’t be in NIFTY WhatsApp groups.

This isn’t HDFC for rich uncles. This isEMIs for the real India. And guess what? Those EMIs get paid — slowly, surely, sometimes via UPI, sometimes via goat sales.

4.Financials Overview

TTM Revenue:₹2,440 CrTTM PAT:₹587 CrEPS (FY25):₹72.5Recalculated P/E:₹1,728 / ₹72.5 =23.8xAUM Growth:16% YoYGross NPA:1.22%Net NPA:0.84%

Margins are solid, NPAs are low, and ROE is consistent at 14%. The profit story is clean, but the cash flow is messy — as is common