AAVAS Financiers Ltd

Overview

• Standalone BRSR FY2025-26 for Aavas Financiers Limited, NBFC-HFC.
• Primary business: home loans, MSME mortgages, and home equity lending; 100% turnover from these.
• Standalone boundary with 442 offices across 13 states/UTs; 9,471 employees.
• LEED Gold Head Office; 718 green homes financed; Go Green initiatives; 10,000+ trees planted.

Key ESG Risks & Opportunities

• Affordable housing lending to low/mid-income borrowers offers growth but entails undocumented income credit risk.
• Mitigation via conservative underwriting, risk scoring, internal models, and prudent LTV limits.
• Data privacy and cyber risk from digitization; mitigated by robust IT security and DPDP compliance.
• Climate change poses physical and transition risks; opportunities from green housing and Go Green.

Governance & Policy Highlights

• Board CSR & ESG Committee provides strategic oversight; quarterly ESG reviews.
• Management ESG Steering Committee and Risk Management Committee oversee implementation and governance.
• Anti-bribery, whistleblower, human rights, and equal opportunity policies; board-approved.
• Grant Thornton Bharat LLP provides reasonable assurance on BRSR Core; Churchgate Partners handles ESG reporting.

Social Responsibility & Workforce

• Total workforce: 9,471; 7,649 permanent; 1,822 others.
• Board women 37.5%; HO women 26.83%.
• Permanent employee turnover 51.32% overall; male 51.65%, female 45.52%.
• POSH training: 299 sessions; 6,409 employees; ICC training.
• LTIFR 0; no fatalities; safety initiatives under We Care.
• Creche facility; maternity/paternity leave; wellness programs; 100% training coverage.

Environmental Performance

• Scope 1 emissions 45.84 tCO2e; Scope 2 3,106.92 tCO2e; total 3,152.76 tCO2e.
• Emissions intensity 0.41 tCO2e per FTE.
• Non-renewable energy use 15,852.28 GJ; energy intensity 1.89 GJ/FTE.
• Groundwater withdrawal 129,709 kL; total water withdrawal 129,709 kL; water intensity 13.69 L/FTE.
• Waste total 11.24 MT; 10.97 MT recycled; 5.52 MT e-waste.
• 630 kWP solar; LEED Gold; 718 green homes; 10,000+ trees planted; 34k m3 water saved.

Stakeholder Engagement & Complaints

• Stakeholders: customers, employees, investors, regulators, community; multiple channels for engagement.
• Customer complaints: 614 filed FY2025-26; nil pending resolution.
• Grievance mechanism with three-step escalation to NHB via portals; policy publicly accessible.
• CSR engagement through Aavas Foundation and Green Samvaad; stakeholder feedback informs strategy.

Other Notable Metrics

• External ESG ratings include CRISIL ESG 64; Sustainalytics 23.9; NSE 71; S&P Global 35.
• 0 data breaches; zero-tolerance on data privacy; DPDP and related controls.
• RPTs: purchases from related parties 0.056%; loans to related parties 0.003%.
• Assurance: BRSR Core by Grant Thornton Bharat; ESG reporting by Churchgate Partners.

AGM and annual report disclosure

• 16th AGM scheduled for 16 Sep 2026 at 3:00 PM IST via VC/OAVM.
• Notice and Annual Report for FY2025-26 sent electronically to registered Members.
• Web-links provided to access Annual Report on company site and investor-relations page.
• E-voting window: Sep 11–15, 2026 with cut-off Sep 9, 2026.
• Speaker registration last date: Sep 9, 2026.
• AGM notice available on NSDL, BSE, and NSE websites.

Financial performance

• FY26 total income ₹2,684.83 crore.
• PAT ₹655.59 crore.
• AuM ₹23,452 crore.
• NIM 7.93%.

Asset quality and risk

• GNPA 1.05%.
• NNPA 0.68%.
• 1+ DPD 3.17%.

Growth and geographic presence

• 435 branches across 13 states and 2 UTs.
• 80% of AUM from Tier-3 geographies.

Capital structure and governance

• Promoter Aquilo holds 48.88%.

Meeting Details

• Aug 17, 2026, 11:00 AM-12:00 PM IST, Pune, physical one-on-one investor meeting.
• Aug 19, 2026, 9:00 AM-5:00 PM IST, Mumbai, Motilal Oswal Investor Conference (physical, group/one-on-one).

Participants

• Company management to participate in meetings.

Purpose

• Purpose is investor/analyst interaction; discussion based on public information.

Additional Notes

• Investor presentation available on the company website.
• Schedule subject to change due to unforeseen exigencies.

Meeting Details

• Date and time: Aug 12, 2026, 9:00 AM–5:00 PM IST.
• Type/Mode: Physical – One-on-One Meeting.
• Place: Chennai.
• Organizer: Company management.
• Key participants: Company management representatives (e.g., CEO, CFO).
• Purpose: Investor/analyst interaction and discussion on operations.
• Presentation: Investor presentation already uploaded on the company's website.

Appointment details

• Aavas appoints Mr. Vellur Gopalaraghavan Kannan as Chairperson and Independent Director, effective Aug 1, 2026.
• Independent Director term: five years from Aug 1, 2026 to July 31, 2031, subject to approval.
• Kannan to serve as Chairperson for one year.
• Kannan succeeds Sandeep Tandon as Chairperson; board thanks Tandon for leadership.

Candidate background

• Kannan is a seasoned BFSI executive with over 40 years of leadership experience.
• Joined SBI as Probationary Officer and rose to Managing Director by 2016.
• Previously MD & CEO of SBI Capital Markets Ltd.
• Post-retirement, led Indian Banks' Association as Chief Executive (2016-2019).
• Has chaired RBI committees and served as External Expert at NSE oversight.

Resignation: Sandeep Tandon

• Resignation of Sandeep Tandon as Chairperson and Non-Executive Independent Director, effective July 31, 2026.
• Reason: personal and professional commitments; no other material reasons stated.
• Ceases to be member and chair of all committees.

Appointment: Kannan as Independent Director & Chair

• Appointed Additional Non-Executive Independent Director for five years (Aug 1, 2026–Jul 31, 2031).
• Also appointed Chairperson of the Board with effect Aug 1, 2026 for one year.
• Not liable to retire by rotation.
• Profile: 40+ years BFSI leadership; ex-SBI MD; ex-SBI Capital Markets CEO; risk and strategy expertise.
• Disclosures: Not related to any director.

Committee Reconstitution

• Reconstituted Stakeholders Relationship, IT Strategy, Nomination & Remuneration, and Audit Committees, effective Aug 1, 2026.
• Kannan appointed Chairperson of Stakeholders Relationship and IT Strategy Committees.
• Nomination & Remuneration: Soumya Rajan Chair; Kannan Member; Siddharth Tapaswin Patel Member.
• Audit: Vivek Anant Karve Chair; Kannan Member; Soumya Rajan Member; Nikhil Omprakash Gahrotra Member.