AAVAS Financiers Q2 FY27 Results (NSE: AAVAS)
Signal: Earnings grew
The read
The key inflection is decelerating growth: total income grew 10.4% YoY and PAT 10.7% YoY in Q2FY27 versus Q1FY27 revenue growth of 16.8% and PAT growth of 23.0%; impairment rose 68.5% YoY to ₹1,343.63 lakh, while asset quality remained at 1.11% GNPA, 0.70% NNPA and 70.24% provision coverage.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹736.77 Cr | +10.4% | +3.9% |
| Net profit | ₹181.52 Cr | +10.7% | |
| EPS | ₹22.89 | +10.5% | |
| EBIT margin | 0% |
P&L walk
Standalone total income rose 10.4% YoY and 3.9% QoQ, while PAT rose 10.7% YoY and 6.0% QoQ; higher impairment at ₹1,343.63 lakh, up 68.5% YoY, absorbed part of the operating growth.
Key positives
- Total income reached ₹73,677.40 lakh, up 10.4% YoY and 3.9% QoQ, with interest income up 11.8% YoY to ₹62,992.06 lakh.
- Basic EPS rose 10.5% YoY to ₹22.89 and broadly tracked the 10.7% PAT growth, indicating no material dilution impact.
- Asset quality remained disclosed at 1.11% GNPA and 0.70% NNPA, with provision coverage of 70.24% and CRAR of 43.77%.
- Employee costs increased 7.3% YoY to ₹12,119.47 lakh, below the 10.4% total-income growth.
Key concerns
- PAT growth slowed to 10.7% YoY from 23.0% in Q1FY27, while total-income growth slowed to 10.4% from 16.8%.
- Impairment on financial instruments rose 68.5% YoY to ₹1,343.63 lakh, materially faster than the 10.4% total-income growth.
- H1 operating cash flow was negative at ₹64,734.50 lakh versus negative ₹12,665.24 lakh YoY, primarily because the increase in loans consumed ₹97,380.06 lakh.
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