Aavas Financiers Reports Robust FY25 Results & Approves Major NCD Issue – Strong Growth Ahead!

About Aavas Financiers Limited:

• Incorporated: 2011

• CIN: L65922RJ2011PLC034297

• Headquarters: Jaipur, Rajasthan

• Sector: Housing Finance

• Services: Provides housing loans to low & middle-income self-employed customers

• Listing: NSE (Symbol: AAVAS) & BSE (Code: 541988)

✨ Report:

Aavas Financiers Limited has announced its audited financial results for the quarter and year ending March 31, 2025, showcasing remarkable growth in revenue, profit, and financial stability. The Board has approved the issuance of Non-Convertible Debentures (NCDs) worth up to ₹8,500 crore to be raised through private placements in multiple tranches, reflecting strong confidence in future expansion and liquidity. This major step, combined with a reappointment of Mr. Sandeep Tandon as Chairperson and a fresh 5-year term for secretarial auditors M/s Chandrasekaran Associates, indicates robust governance and long-term vision.

The company recorded a total income of ₹2,35,841.50 lakh for FY25, a notable rise from ₹2,02,029.64 lakh in FY24. Net profit surged to ₹57,410.82 lakh, up from ₹49,069.42 lakh last year. Operational excellence was underscored by a healthy capital adequacy ratio of 44.5%, a low GNPA of 1.08%, and a net NPA of 0.73%. Notably, all proceeds from NCDs were utilized as per their intended objectives, ensuring transparency and investor trust.

The impressive results are backed by sound fundamentals: ₹16,22,970.93 lakh in outstanding loans, a debt-equity ratio of 3.18, and ₹4,36,083.23 lakh in net worth. Aavas also reaffirmed its 100% security cover on secured NCDs and successfully assigned and co-lent thousands of home loans to NBFCs. For retail investors, this signals a financially healthy and operationally resilient housing finance institution with promising growth and returns.

📍 Highlights:

• 🗓️ Board Meeting Date: April 24, 2025

• 📈 Audited Financials Approved for FY25 (₹57,410.82 lakh net profit)

• 💸 Income Up: Total income grew to ₹2,35,841.50 lakh from ₹2,02,029.64 lakh

• 🏦 NCD Issue Approved: ₹8,500 Cr NCDs to be issued via private placements

• 🔁 Chairperson Reappointed: Mr. Sandeep Tandon reappointed till FY26 AGM

• 🛡️ New Auditor Appointed: M/s Chandrasekaran Associates for 5 years

• 💡 Strong Ratios:

  • Capital Adequacy: 44.5%

  • Debt-Equity: 3.18

  • GNPA: 1.08%, NNPA: 0.73%

• 🔐 100% Secured NCDs with adequate asset cover

• 📊 NPA & Security Data Published as per RBI guidelines

• 🧾 Clean Audit Opinion: No modification in auditors’ report

• 🌐 Subsidiary Liquidated: Aavas Finserv Ltd dissolved in Jan 2025

• 📌 Investor Safe: No deviation in NCD fund utilization

• 🧩 Segment: Housing finance only (no separate reportable segments)

📉 Market Effect Prediction:

🔍 Positive Sentiment Expected

• The strong financial performance and conservative asset management may attract more institutional and retail investors.

• Approval of large-scale NCD issuance could improve liquidity and support future lending, possibly leading to a short-term spike in stock prices.

👤 Benefits for Retail Traders:

• 📶 Strong financial base = low risk of capital loss

• 📊 Rising EPS (₹72.54 basic for FY25) = better long-term returns

• 🔁 Transparent operations with clear audit reports & regulatory compliance

• 📘 NCDs with strong cover can become a solid fixed-income investment option

• 📈 Stock price might appreciate due to positive results and investor confidence

💬 Suggested Chart for Post:

✨ Phrase:

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📉 Stock Market Disclaimer

Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.