Max Financial & Aavas Financiers Q2 2025 Results: Profit, Revenue, and Key Highlights

Max Financial Services and Aavas Financiers delivered their Q2 FY26 results, reflecting mixed performance across revenue and profits. Both firms demonstrated resilience in their respective segments, with Max Financial navigating a challenging revenue environment while Aavas Financiers showed steady growth in profit and assets under management.

Market Performance

Max Financial Services reported a consolidated net profit of ₹4.12 crore for Q2FY26, down 96% YoY from ₹112.56 crore in the same quarter last year. Revenue from operations fell nearly 27% YoY to ₹9,792 crore, compared with ₹13,371.86 crore in Q2FY25.

Despite the sharp decline in profit and revenue, the value of new business (VNB) increased 27% YoY in H1 FY26 (April–September). This growth reflects a margin-accretive product mix, with:

• ULIP volumes declining
• Annuity and protection products are growing 122% and 34% YoY, respectively.
• Par and non-par business rising 41% and 17% YoY

EBITDA margins were positively impacted by product mix improvements and operational efficiency, helping offset revenue challenges.

Aavas Financiers posted a net profit of ₹163.93 crore, marking a 10.8% YoY increase from ₹147.90 crore in Q2FY25. Revenue from operations rose over 15% YoY to ₹667 crore.

Key operational highlights include:

• Assets under Management (AUM): ₹21,356.6 crore, up 16% YoY
• Net Interest Margin (NIM): improved 26 basis points to 8.04%
• Growth driven by higher fees, assignment income, and lower operating expenses

Aavas Financiers continues to show steady expansion and margin improvement, reinforcing its position in the housing finance sector.

Operational Insights

Both firms demonstrated resilience in their respective markets:

• Max Financial: Focused on strengthening non-ULIP products and expanding annuity and protection offerings. The VNB margin of 25.5% stood out as a positive highlight.
• Aavas Financiers: Growth was supported by better margins, increased fee income, and asset quality maintenance. The firm continues to scale its AUM efficiently.

The results reflect strategic focus and operational adaptability in evolving financial markets.

Summary

Q2FY26 results highlight contrasting trajectories:

Max Financial Services:

• Net Profit: ₹4.12 crore, down 96% YoY
• Revenue from operations: ₹9,792 crore, down 27% YoY
• Value of New Business (VNB): up 27% YoY in H1 FY26
• Growth led by protection, annuity, and non-par products

Aavas Financiers:

• Net Profit: ₹163.93 crore, up 10.8% YoY
• Revenue from operations: ₹667 crore, up 15% YoY
• AUM: ₹21,356.6 crore, up 16% YoY
• Net Interest Margin: 8.04%, up 26 bps

Both companies continue to strengthen their market presence and operational efficiency, with Aavas showing stable growth and Max Financial focusing on long-term product mix improvements.