Press Release

Ref. No. AAVAS/SEC/2026-27/2926 Date: July 21, 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: Investor Release on the Financial and Operational Performance of the Company for Quarter ended June 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 ended June 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: July 21, 2026 and Board Meeting concluded at 04:34 P.M. Thanking You, For AAVAS FINANCIERS LIMITED SAURABH SHARMA COMPANY SECRETARY & COMPLIANCE OFFICER (ACS-60350) Enclosed: a/a Aavas Financiers Limited Q1FY27 Results ➢ AUM of Rs. 239 bn; Growth of 15.4% YoY ➢ PAT at Rs. 1.71bn; Growth of 23% YoY ➢ NIM at 7.70% and Cost to Income at 43.7% ➢ Net NPA at 0.71%; 1+ DPD at 3.76% ➢ Positive ALM & Strong Capital Base Press Release: 21st July 2026, Jaipur Aavas Financiers Limited has declared unaudited Financial Results for the quarter ending 30th June 2026. Key Performance Metrics for Q1FY27: Particulars (Rs. mn) Q1FY27 Q1FY26 Y-o-Y Assets under Management (AuM) 2,39,306 2,07,397 15.4% Net Interest Income (Rs.) 3,383 2,862 18.2% Net Interest Margin (Rs.) 4,139 3,543 16.8% Net Profit (Rs.) 1,713 1,392 23.0% Net Worth (Rs.) 52,196 45,098 15.7% Cost to Income 43.7% 46.3% Improved by 254 bps Net Interest Margin 7.70% 7.48% Improved by 22 bps 1+ DPD 3.76% 4.15% Improved by 39 bps Active Loan Accounts (No.) 2,75,869 2,50,694 Increased by 10% Performance Highlights: • Assets under Management (AuM) of the company registered a growth of 15.4% to reach Rs. 239 bn as on 30th June 26. • During Q1FY26, we disbursed loans worth Rs 16.1 bn, delivering robust 41% YoY growth, while maintaining our strong focus on quality origination and prudent underwriting. • Our Net profit for Q1 FY27 grew by 23% YoY to Rs 1.71 bn led by robust 18% YoY growth in NII. • Net Total Income (NIM) in absolute terms grew by 17% YoY in Q1 FY26, while NIM as a percentage of total assets expanded by 22-bps YoY to 7.70%. • In line with our customer centric approach, we took an additional 10-bps reduction in PLR. Consequently, our spread moderated by 5-bps YoY to 5.06%, as borrowing costs remained stable at 7.64% sequentially. • Our cost-to-income ratio improved by 254 bps YoY to 43.7% in Q1 FY27, driven by better cost efficiency. As a result, our operating expense-to-assets ratio improved by 9 bps YoY to 3.37%. • Our asset quality remains pristine, with our 1+ DPD improving by 39 bps YoY to 3.76% in Q1 FY27, remaining comfortably below 5%. Gross NPA improved by 11 bps YoY to 1.11%, while Net NPA improved by 13 bps YoY to 0.71% • Supported by our disciplined underwriting and strong collection framework, credit costs for Q1 FY27 stood at 24 bps, remaining well within our guided range. • Our Net Worth continues to compound steadily, growing at 16% YoY, with the strength of our capital position driven by consistently compounding internal accruals. • Our ROA improved by 25 bps YoY to 3.19% and ROE improving by 78 bps YoY to 13.34% in Q1 FY27. Commenting on the performance, Mr. Manu Singh, Chief Executive Officer, said: “Dear All, Q1 FY27 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, and more productive, with greater accountability and sharper execution across the organization. During the quarter, we disbursed loans worth ₹16.1 bn, delivering robust growth of 41% YoY. This performance was broad-based and driven by a strong pickup in volumes, meaningful improvement in resource productivity, and healthy 38% YoY growth in the Home Loan segment. Our AUM grew by 15.4% YoY to ₹239.3 bn as of 30th June 2026. Encouragingly, our monthly AUM addition improved by nearly 50% YoY 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. 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 the strategic initiatives underway and provides a solid foundation for the rest of the year. During the quarter, we expanded our branch network to 440 across 15 states. We will continue to invest in branch expansion to further strengthen and diversify our presence. Our NIMs expanded by 22-bps YoY to 7.70% during the quarter, supported by improvement in cost of borrowing coupled with our continued focus on risk-adjusted pricing. Despite a volatile interest rate environment and uncertain geo-political backdrop, Aavas managed its cost of borrowings efficiently. This underscores the strength of our diversified liability franchise and strong lender relationships. We continue to enjoy broad-based lender support, providing us with access to diversified, long-term, and cost-effective funding to support future growth. We delivered 23% YoY growth in Net profit, driven by a healthy 18% YoY growth in Net Interest Income, supported by robust business growth. Our disciplined cost management approach, coupled with a continued focus on profitable growth, has started yielding encouraging results, reflected in a 254-bps YoY improvement in our cost-to-income ratio to 43.7% in Q1 FY27. 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 39 bps YoY to 3.76% in Q1 FY27, remaining comfortably below 5%. Gross NPA improved to 1.11%, while Net NPA to 0.71%, underscoring the resilience of our portfolio and the effectiveness of our credit-first approach. With clear accountability across functions and strong alignment throughout the organization, we are 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 execution model leading to superior business outcomes. Safe Harbor Statement This document may contain forward-looking statements about the Company, which are based on the beliefs, opinions and expectations of the Company’s management as the date of this press release and the companies do not assume any obligation to update their forward looking statements if those beliefs, opinions, expectations, or other circumstances should change, These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Consequently, readers should not place any undue reliance on such forward-looking statements. For more Information, please contact: Aavas Financiers Limited CIN: L65922RJ2011PLC034297 Mr. Rakesh Shind [Showing first 8,000 characters — download PDF for full document]