AAVAS Financiers (AAVAS IN) – Q3FY26 Result Update – Growth picking up; opex to improve – BUY
Published on 06 Feb 2026
3Q disbursements/ AUM grew 8%/ 15% YoY. Commentary indicated a pick-up in disbursements post the festive season and expects the momentum to continue to FY27. We remain wary of high competitive intensity and build an AUM growth of 15%/16% in FY26/ FY27E. Expect FY26 spread to be in-line with guidance at 5.25% aided by a lower cost of borrowing. However, expect a moderation in FY27 as the book reprices with the PLR cut. Expect an improvement in opex as productivity benefits flow through; credit cost likely to be benign. We tweak our FY26/ FY27E estimates factoring recovery in growth and improved opex. We roll-forward to Dec-27E P/ABV with a multiple of 2.1x and an unchanged TP of Rs 1,700. Maintain BUY.
