AAVAS Financiers hits 52-week low, stock slips 7% post Q3 results

AAVAS Financiers stock quoted lower for the eight straight trading day, and has plunged 14 per cent during this period.

AAVAS Financiers share price today

 

Share price of AAVAS Financiers hit a 52-week low of ₹1,283, falling 7 per cent on the BSE in Friday’s intra-day trade after the housing finance company (HFC) announced its December 2025 quarter (Q3FY26) results. The company had declared Q3 results on Thursday after market hours. 

Today the stock fell below its previous low of ₹1,352 touched on January 21, 2026. It quoted lower for the eight straight trading days, plunging 14 per cent during the period, and has declined 43 per cent from its 52-week high of ₹2,238.35 hit on April 23, 2025. 

 

AAVAS Financiers is a retail, affordable housing finance company, primarily serving low- and middle-income self-employed customers in semi-urban and rural areas in India. The company’s product offering consists of home loans for the purchase or construction of residential properties, and for the extension and repair of existing housing units, loan against property and MSME loans.  CATCH STOCK MARKET UPDATES TODAY LIVE

Brokerages view on AAVAS Financiers post Q3 results

The affordable housing sector was already experiencing heightened competition from public sector undertaking (PSU) banks, and now with large HFCs also entering this segment, the competitive intensity might remain elevated for slightly longer. Given AAVAS’ relative underperformance on disbursements for the last few quarters, analysts at Motilal Oswal Financial Services (MOFSL) believe that investors will now demand better execution on business volumes from the company management for any rerating in valuation multiples. 

While Q3FY26 delivered stable profitability, margin resilience, and healthy asset quality, the change in business processes in H1 and subsequent moderation in disbursements have resulted in below-expected asset under management (AUM) growth outcomes, underscoring the need for stronger traction across distribution expansion and digital channels. 

AAVAS is a structurally sound franchise with earnings resilience and asset quality as core positives. However, near-term valuation upside remains capped until execution on growth initiatives demonstrates tangible results, the brokerage firm said. 

For a meaningful re-rating, analysts believe that management must translate its growth aspirations into consistent AUM and disbursement momentum, particularly in the context of heightened competition in the affordable housing segment. MOFSL reiterated 'Neutral' rating on AAVAS as the company navigates a period of subdued business momentum, with execution on growth initiatives now paramount for valuation re-rating, it added.  ALSO READ | ITC jumps over 5%, may log biggest single-day in 5 years; Godfrey zooms 12% 

AUM growth moderated to 15 per cent YoY (vs. 16 per cent in Q2), led by muted disbursements of 8 per cent/10 per cent YoY/QoQ. While the management expects a seasonal pickup in Q4 disbursements, supported by the addition of ~20–25 new branches, achieving the earlier guided 17–18 per cent AUM growth appears challenging at the current run-rate, analysts at JM Financial Institutional Securities said. 

The management targets 17–18 per cent AUM growth in FY27 and sustainable credit costs <25bps. The company targets 25 per cent disbursement growth in FY27, supported by branch expansion over the past 24 months, plans to add 50 branches in FY27, and increased digital channel utilization. 

The brokerage firm expects performance to remain steady, supported by stable spreads, improving operating leverage, and controlled credit costs, though recent growth moderation and subdued disbursements remain key monitorables.  ================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.