Avanse Financial Services reports 31% rise in Q1 FY27 net profit
Education-focused NBFC Avanse Financial Services announced a 31% year-over-year increase in net profit for the first quarter of fiscal year 2027. The net profit reached ₹154.3 crore.
Avanse Financial Services, a non-banking financial company specializing in education loans, reported a 31% year-over-year increase in its net profit for the first quarter of fiscal year 2027, reaching ₹154.3 crore. This marks a significant rise from ₹118 crore in the same period last year.
The company's operating revenue also saw an 18% growth, amounting to ₹760 crore for the quarter. The primary driver of revenue remains interest income from loans, which grew 18% year-over-year to ₹683.5 crore. Fees and commissions contributed an additional ₹39.3 crore.
As of the end of fiscal year 2026, Avanse managed assets worth ₹23,411 crore, a 1.23x increase from the previous year, with disbursements of ₹7,019 crore during that fiscal year. The company offers loans for students pursuing studies in India and abroad, and also provides capital to educational institutions for infrastructure development.
Despite the positive quarterly results, Avanse has placed its initial public offering (IPO) plans on hold. The company cited the evolving geopolitical situation and changes in immigration policies in countries like the US as reasons for delaying the listing. Avanse intends to refile its draft red herring prospectus (DRHP) when market conditions become more favourable.
Loans for studying abroad continue to be Avanse's largest segment, accounting for a significant portion of its assets under management and disbursements. Loans to educational institutions and domestic education loans also form part of its business portfolio.