AAVAS Financiers (AAVAS IN) – Q4FY26 Result Update – Execution in terms of growth is a key monitorable – Downgrade to ‘ACCUMULATE’
Published on 06 May 2026
4Q disbursements/ AUM grew 16%/ 15% YoY. Commentary indicated an aspiration for 20%+ growth; we remain conservative considering high competitive intensity and build an AUM growth of 18%/19% in FY27/ FY28E. Expect FY27/28E spreads to moderate as the book reprices with PLR cut and cost of borrowing inches up due to hardening of bond yields. Expect an improvement in opex as productivity benefits flow through and company does not anticipate further material spend on tech. Credit cost is likely to be benign. We slightly tweak our FY27/ FY28E estimates factoring pick-up in growth and improved opex. We tweak our multiple slightly to 1.9x (earlier 1.8x) with a TP of Rs 1,585. Downgrade to ACCUMULATE as the stock has run up by 29% in the past month.
