Press Release

Ref. No. AAVAS/SEC/2026-27/3379 Date: October 26, 2026 To, To, The National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai – 400051 Mumbai – 400001 Scrip Symbol: AAVAS Scrip Code: 541988 Dear Sir/Madam, Subject: Investor Release on the Financial and Operational Performance of the Company for the quarter and half year ended September 30, 2026 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Investor Release on the Financial and Operational performance of the Company for the quarter and half year ended September 30, 2026. The above information will also be made available on the website of the Company and can be accessed https://www.aavas.in/investor-relations/investor-intimation. You are requested to take the above on record. Date and time of occurrence of event/information: October 26, 2026 and Board Meeting concluded at 05:41 P.M (IST). Thanking You, For AAVAS FINANCIERS LIMITED SAURABH SHARMA COMPANY SECRETARY & COMPLIANCE OFFICER (ACS-60350) Enclosed: a/a Aavas Financiers Limited H1FY27 Results ➢ AUM of Rs. 248 bn; Growth of 16.1% YoY ➢ PAT at Rs. 3.5 bn; Growth of 16.4% YoY ➢ NIM at 7.76% and Cost to Income at 42.9% ➢ Net NPA at 0.70%; 1+ DPD at 3.81% ➢ Positive ALM & Strong Capital Base Press Release: 26th Oct 2026, Jaipur Aavas Financiers Limited has declared unaudited Financial Results for the quarter and half year ending 30th September 2026. Key Performance Metrics for H1FY27: Particulars (Rs. mn) H1FY27 H1FY26 Y-o-Y Disbursements 35,051 27,053 29.6% Assets under Management (AuM) 2,48,011 2,13,566 16.1% Net Interest Income (Rs.) 6,825 5,851 16.7% Operating Profit (Rs.) 4,819 4,096 17.7% Net Profit (Rs.) 3,528 3,032 16.4% Net Worth (Rs.) 53,985 46,799 15.4% Cost to Income 42.95% 44.90% Improved by 195 bps GNPA 1.11% 1.24% Improved by 13 bps 1+ DPD 3.81% 3.99% Improved by 18 bps Active Loan Accounts (No.) 2,82,707 2,55,696 11% Performance Highlights: • Assets under Management (AuM) of the company registered a growth of 16.1% to reach Rs. 248 bn as on 30th Sep 26. • During H1FY27, we disbursed loans worth to Rs. 35.1 bn, delivering robust growth of 30% YoY, while maintaining our strong focus on quality origination and prudent underwriting. In Q2FY27, disbursements grew by 21% YoY at Rs. 18.9 bn. • Our Net profit for H1FY27 grew by 16.4% YoY to Rs 3.5 bn led by robust 17% YoY growth in NII and 18% YoY growth in Operating Profit. • During H1FY27, Net Total Income (NIM) grew by 14% YoY in absolute terms. NIM as a percentage of average total assets remained broadly stable at 7.76%, moderating marginally by 5 bps YoY. Whereas in Q2FY27 NIM improved by 11 bps QoQ to 7.81%. • Despite the volatile interest rate environment, borrowing costs remained stable at 7.64% sequentially. We strengthened and diversified our funding franchise with the addition of two new large relationships. • Our cost-to-income ratio improved by 195 bps YoY in H1FY27 to 42.9%, driven by better cost efficiency. As a result, our operating expense-to-assets ratio improved by 18 bps YoY to 3.33%. • Our asset quality remains pristine, with our 1+ DPD improved by 18 bps YoY to 3.76% in Q2 FY27, remaining comfortably below 5%. Gross NPA improved by 13 bps YoY to 1.11%, while Net NPA improved by 16 bps YoY to 0.70% • Supported by our disciplined underwriting and strong collection framework, credit costs for Q2 FY27 remained stable at 24 bps, remaining within our guided range. • Our Net Worth continues to compound steadily, growing at 15.4% YoY, with the strength of our capital position driven by consistently compounding internal accruals. • We continued to deliver a steady improvement in profitability during H1FY27, with RoA expanding by 4 bps YoY and RoE improving by 5 bps YoY. The momentum strengthened further in Q2FY27, as RoA improved by 9 bps QoQ to 3.28%, while RoE increased by 28 bps QoQ to 13.63%. Commenting on the performance, Mr. Manu Singh, Chief Executive Officer, said: “Dear All, It gives me immense pleasure and pride to share that Aavas will cross Rs. 250 bn in AUM this month, having served nearly 4.5 lakh customers. As we embark on the next phase of our journey, the significant opportunity in affordable housing, the depth of the underserved customer segment and our expanding distribution network gives us strong confidence in the long-term potential of the Aavas franchise and provide a credible path toward our next milestone of Rs. 500 bn in AUM. As we pursue this ambition, the quality of growth will remain as important as its pace, with sustainable profitability, prudent underwriting, strong governance and disciplined liability management at the core of our strategy. Technology will serve as a critical force multiplier in this journey, enabling us to scale with greater speed, efficiency and control, while building a more productive, resilient and future-ready Aavas that delivers lasting value to all our stakeholders. During H1FY27, we disbursed Rs. 35.1 bn, achieving robust growth of 30% YoY, primarily driven by higher volumes. The momentum continued in Q2FY27, with disbursements close to Rs. 19 bn, growing by 21% YoY, supported by improving productivity and healthy demand across our markets. Our AUM grew by 16.1% YoY to Rs. 248 bn, while the repayment rate normalized to around 17% and will remain in similar range. These trends reinforce our confidence in accelerating our growth trajectory and delivering more than 20% growth over the long term. During the quarter, we expanded our branch network to 443 across 15 states. We will continue to invest in branch expansion to further strengthen and diversify our presence. In H1FY27, we added 21,500+ new customers to the Aavas’ franchise. Our diversified liability franchise enabled us to maintain the cost of borrowing at 7.64% and spread above 5%, despite the volatile interest-rate environment. While the recent 25-bps repo-rate increase, we expect appropriate repricing of incremental lending should progressively support disbursement and AUM yields. During the quarter, NIM expanded by 11 bps QoQ to 7.81%, supported by stable borrowing costs and disciplined risk-adjusted pricing, giving us confidence in sustaining healthy spreads and margins. We delivered 16.4% YoY growth in Net profit for H1FY27, driven by a healthy 17% YoY growth in Net Interest Income and 18% YoY growth in Operating Profit, supported by robust business growth. In addition, improved operating efficiencies, reflected in a 153-bps QoQ improvement in our cost- to-income ratio, further strengthened profitability during the quarter. We continue to deliver industry-leading asset quality, with all key indicators trending positively and remaining well within our guided range. Our 1+ DPD improved by 18 bps YoY to 3.81% in Q2FY27, remaining comfortably below 5%. Gross NPA improved to 1.11%, while Net NPA to 0.70%, underscoring the resilience of our portfolio and the effectiveness of our credit-first approach. We expect the business momentum and strong performance to continue, as we aim to reach 20% AuM growth, while embedding greater execution discipline and rigor at every layer of the business, underpinned by a firm commitment to strong governance. Our collective ambition is anchored in a simple philosophy: People. Performance. Perseverance. About Aavas Financiers Limited Aavas Financiers Limited, incorporated in 2011 in Jaipur is a retail, affordable housing finance company, primarily serving low- and middle-income self-employed customers in semi-urban and rural areas in India. A majority of our customers have limited access to formal banking credit. The Company’s product offering consists of home loans for the purchase or construction of residential properties, and for the extension and repair of existing housing units, Loan against property and MSME loans. The Company has in-house e [Showing first 8,000 characters — download PDF for full document]