AAVAS Financiers (AAVAS IN) – Management Meet Update – Scaling lending through technology and AI – Upgrade to ‘BUY’
Published on 16 Sep 2026
We attended AAVAS Financiers’ (AAVAS) management meet, which focused on technology and analytics. The management highlighted the company’s scalable technology architecture and increasing use of AI across the lending lifecycle. A platform has been designed to support multi-fold growth without the need for major tech changes and operates largely on a pay-per-use model, limiting the need for incremental opex as the business scales. AI/analytics initiatives are already showing benefits through lower TAT, higher FTR and pre-delinquency identification, while the management remains focused on improving productivity. Technology remains a key enabler of operating leverage for AAVAS, with further benefits likely from AI-led underwriting, collections, cross-sell and pricing initiatives. We roll forward our estimates to Sep’28E and upgrade to ‘BUY’ rating (from ‘Accumulate’) with TP of INR1,685 (2.0x Sep’28 P/ABV vs. 2.1x earlier).
