Education-focused NBFC Avanse Financial Services posted a 31% year-on-year increase in net profit for the first quarter of fiscal year 2027, reaching ₹154.3 crore compared to ₹118 crore in Q1 FY26, according to inc42.com. However, its net profit declined 8% sequentially from ₹168.1 crore in the previous quarter. The company’s operating revenue rose 18% year-on-year to ₹760 crore but was flat quarter-on-quarter, dipping slightly by ₹6 crore from the last quarter.
Avanse’s revenue growth is primarily driven by interest income from education loans, which stood at ₹683.5 crore in Q1 FY27, up 18% year-on-year and 0.4% quarter-on-quarter. The company also earned ₹39.3 crore through fees and commissions during the quarter. Founded in 2013 by Amit Gainda, Avanse offers loans to students pursuing education in India and abroad and provides capital to educational institutions for infrastructure development. It has served over 73,000 students to date, with most loans catering to study abroad aspirants.
The lender’s assets under management reached ₹23,411 crore at the end of FY26, a 1.23 times increase from the previous year, with loan disbursements totaling ₹7,019 crore during FY26. Avanse filed its draft red herring prospectus for an initial public offering with SEBI in June 2024 and received regulatory approval in October 2024. The IPO aims to raise ₹3,500 crore through a fresh issue of shares worth ₹1,000 crore and an offer for sale component.
Avanse’s financial performance in Q1 FY27 reflects steady growth in the education loan sector, supported by its expanding loan book and fee income. The company’s IPO approval by SEBI in October 2024 positions it to raise significant capital to fuel further expansion in the education financing market.