1. Opening Hook
While most housing finance companies are busy explaining why margins might compress someday, Aavas just reported 8%+ NIMs and moved on like it’s business as usual. CARE upgraded the outlook, asset quality behaved better than most NBFC peers, and management calmly talked about ₹55,000 crore AUM dreams like it’s already on their Excel.
Q2 FY26 was supposed to be a “normalization” quarter after accounting changes. Instead, disbursements bounced hard, spreads widened, and ROA quietly climbed to 3.4%. Meanwhile, management kept repeating one word—prudence—like a mantra, even as analysts poked about tariffs, MFI spillovers, and BT-outs.
Nothing flashy. Nothing reckless. Just steady compounding with ambition hiding under the table.
Read on. The headline looks calm, but the long-term plan just got louder.
2. At a Glance
- AUM up 16% YoY – Crossed ₹214 bn; FY26 growth guidance raised to ~18%.
- Disbursements up 36% QoQ – Q1 hangover officially cured.
- NIM at 8.04% – Expanded 56 bps QoQ; peers quietly jealous.
- PAT ₹1.64 bn (+11% YoY) – Profits stayed disciplined, not flashy.
- GNPA at 1.24% – Still cleaner than most affordable housing peers.
- CRAR at 46.4% – Capital so high, dividends politely told to wait.
3. Management’s Key Commentary
“CARE has revised our outlook from Stable to Positive.”
(Translation: AA+ loading… cheaper money soon.) 😏
“Disbursements grew 36% QoQ as operations normalized.”
(Translation: Q1 noise is done, stop worrying.)
“We expect full-year AUM growth of around 18%.”
(Translation: Earlier caution phase officially over.)
“We remain cautious despite steady asset quality.”
(Translation: We don’t chase growth just because others are bleeding.)
“Credit costs will remain below 25 bps sustainably.”
(Translation: Risk team still runs the show.)
“Incremental yields are lower, but risk-adjusted returns are better.”
(Translation: We’re okay earning slightly less to sleep better.) 😌
“Dividend payout will come once growth and ROE stabilize.”
(Translation:
