Transcript of the earnings call for the Quarter ended June 30, 2026

Ref. No. AAVAS/SEC/2026-27/2969 Date: July 27, 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, Sub: Transcript of the Earnings Call for the Quarter ended June 30, 2026. Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and with respect to our letter dated July 14, 2026 bearing Ref. No. AAVAS/SEC/2026-27/2897 please find enclosed the transcript of the Earnings Call on the Financial and Operational performance of the Company for the Quarter ended June 30, 2026 held on Tuesday, July 21, 2026. The above information is also available on the website of the Company and can be accessed at https://www.aavas.in/investor-relations/investor-intimation. We request you to take the same on your record. Date and time of occurrence of event/information: July 21, 2026 and Earnings Call commenced at 06:45 P.M. (IST). Thanking You, For AAVAS FINANCIERS LIMITED SAURABH SHARMA COMPANY SECRETARY & COMPLIANCE OFFICER (ACS-60350) LANRETNI “Aavas Financiers Limited Q1FY27 Earnings Conference Call” July 21, 2026 Management: Mr. Manu Singh – Managing Director* and Chief Executive Officer Mr. Ghanshyam Gupta – Interim, Chief Financial Officer Mr. Rakesh Shinde – Head of Investor Relations *Subject to RBI approval This document is a transcription of the conference call conducted on 21-July-2026. Click here to listen to the original audio Disclaimer: This transcript is edited for factual errors and does not for imply to be verbatim recordings of the proceedings. The reader is also requested to refer to audio recordings of the call uploaded on the company website. In case of discrepancy, the audio recordings will prevail. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Aavas Financiers Limited. Moderator: Ladies and gentlemen, good evening and welcome to the Aavas Financiers Limited Q1FY27 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 guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Please note that the conference is being recorded. I now hand the conference over to Mr. Rakesh Shinde, Head of Investor Relations of Aavas Financiers Limited. Thank you and over to you, sir. Rakesh Shinde: Thank you, Swapnil. Good evening, everyone, and a very warm welcome to all participants joining us today to discuss the financial and operating performance of Aavas Financiers Limited for Q1FY27. The results and the investor presentation have been uploaded on the stock exchanges and are also available on our website. I hope you have had a chance to review them. We have also uploaded an excel fact sheet containing historical data on our website for your easy reference. Joining me today is the entire management team of Aavas. We will begin this call with an opening remark from our CEO, Manu Singh and interim CFO, Ghanshyam Gupta. This will be followed by a Q&A session. With that, let me now hand over the call to Manu. Over to you, Manu. Manu Singh: Thank you, Rakesh. And a very good evening to everyone joining us today. We appreciate you being here. Q1FY27 has been a strong quarter for Aavas and marks an important milestone in our growth journey. The strong performance during the quarter reflects a business that is becoming faster, fitter, more productive, with greater accountability and sharper execution across our organization. We have started the year on a very strong note. During the quarter, we disbursed loans worth Rs.16.1 billion, delivering a robust growth of 41% Y-o-Y albeit on a lower base. This performance was broad-based and driven by a strong pickup in volumes, meaningful improvement in resource productivity, and healthy 38% Y-o-Y growth in the home loan segment. The quarter reflects the early benefits of our focused execution strategy, stronger field level accountability and continued emphasis on customer acquisition. The momentum witnessed during the quarter strengthens our confidence in our strategic initiatives which are underway and provide a solid foundation for the rest of the year. Our AUM grew by 15.4% Y-o-Y to Rs. 239.3 billion as of June end. Encouragingly, our monthly AUM addition improved by nearly 50% Y-o-Y during the quarter, enabling us to achieve in three months what previously took close to five months. This reflects the positive impact of our efforts around customer acquisition, productivity and execution sharpness. It is a long journey ahead. These improvements give us confidence that Aavas is well positioned to accelerate growth and deliver sustainable 20% growth over the medium term. We deliver 23% Y-o- Y growth in net profits, driven by a healthy 18% Y-o-Y growth in NII, supported by robust business growth. In addition, improved operating efficiencies reflected a 254 bps Y-o-Y improvement in our cost-to-income ratio, which further strengthened profitability during the quarter. As we move ahead, our focus remains on unlocking the full potential of our franchise and translating it into superior operating performance. Our priorities are accelerating customer acquisition, improving productivity, driving higher revenue per resource, enhancing our branch profitability, and getting our product and sourcing mix right with increased operating leverage. We are also leveraging data and technology to strengthen decision making, improving conversion across the login to disbursement funnel, strengthening governance, processes, and delivering superior customer experiences across our lifecycle. Importantly, our first credit approach continues to underpin our best-in-class asset quality. Our 1+DPD improved by 39 bps Y-o-Y, reflecting the strength of our underwriting as well as collections. As a result, our gross NPAs improved by 11 bps Y-o-Y, further reinforcing the resilience of our portfolio. During the quarter, we expanded our branch network to 440 across 15 states. We will continue to invest in branch expansion to further deepen and diversify our presence. At the same time, our focus firmly remains on ensuring faster branch-level break-evens and closely monitoring performance of newly opened branches to drive better productivity and profitability both. With clear accountability across functions and a strong alignment throughout the organization, we are embedding greater execution, discipline and rigor at every layer of the business, underpinned by an unwavering commitment to compliance and governance. Our collective ambition is anchored in a simple philosophy, people, performance, perseverance. With that preamble, I would now take you through our quarterly performance. Our net profit for Q1FY27 grew by 23% Y-o-Y to Rs. 1.71 billion led by a robust 18% Y-o-Y growth in NII on account of healthy improvement in our NIMS. Our net worth continues to compound steadily, growing at 16% Y-o-Y with the strength of our capital position driven by consistent compounding internal accruals. Our NIMs expanded by 22 bps Y-o-Y to 7.70% during the quarter, supported by improvement in cost of borrowing coupled with our continued focus on risk adjustment pricing. Our cost-to-income ratio improved by 254 bps Y-o-Y to 43.7% in Q1FY27, driven by better cost efficiencies. As a result, our operating cost-to-assets ratio improved by 9 bps Y-o-Y to 3.37%. We continue to deliver industry-leading asset quality with all key indicators trending positively and remaining we [Showing first 8,000 characters — download PDF for full document]