Ladies and gentlemen, good day and welcome to the Aavas Financiers Limited Q2 FY2026 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on the touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rakesh Shinde, Head Investor Relations of Aavas Financiers Limited. Thank you, and over to you, sir. Thank you, Rutuja. Good evening, everyone. I extend a very warm welcome to all participants, and thank you for joining us on today's earnings call to discuss the financial and operational performance of our company for H1 and Q2 FY2026, along with the business outlook going forward. The results and the investor presentation have been uploaded on the stock exchanges and are also available on our company website. I hope you had a chance to review them. Joining me today is the entire management team of Aavas. We will begin this call with the opening remarks from our MD and CEO, Sachinder Bhinder, CFO, Kanchan Rawat, and CRO, Ashutosh Atre. This will be followed by a Q&A session. With that, let me now hand over the call to Sachinder. Thank you, Rakesh. Good evening to all. I thank you all for joining us on this earnings call. I hope you had a joyous Diwali and have a prosperous Samvat 2082. I am pleased to share that CARE Ratings has revised its long-term rating outlook on Aavas from stable to positive. This represents an important step towards a potential rating upgrade to AA+, which will further enhance our ability to diversify liability profile in a cost-efficient manner. The outlook revision reflects Aavas's strong fundamentals, quality growth, robust asset quality, sustained profitability, a solid capital position, and stability of our management team. As highlighted during our last quarter's commentary, we are pleased to share that we have made our entry into Tamil Nadu with the opening of eight new branches, and we plan to add another eight in H2, taking our network to 405 branches across 14 states. We will continue to expand in a contiguous cluster-based manner, adding 20-25 branches in H2 to deepen our penetration in the existing markets. As our Tamil Nadu base strengthens, Andhra Pradesh and Telangana become natural next expansion opportunities under the same disciplined approach. On the business front, after the transition to the new disbursement recognition framework in Q1, operations have now normalized, resulting in a strong 36% Q-o-Q and 21% year-on-year growth in disbursement during Q2. Our sanction-to-disbursement ratio, which was impacted in Q1, has recovered and now stands at over 80%, demonstrating improved conversion efficiency. Entering the second half of the year, traditionally a strong period for us, we expect this momentum to sustain and further strengthen. On the credit front, we continue to maintain a cautiously optimistic stance in our underwriting approach. While our asset quality continues to show steady improvement, we remain vigilant and are closely monitoring developments across specific customer segments, geographies, and risk profiles, especially in light of cautionary signals observed among some industry peers. Our calibrated risk strategy remains firmly anchored in prudence and discipline, guided by sound underwriting principles rather than any perceived weakness in demand. Our AUM grew by 16% year-on-year to INR 213.6 billion. Given the current momentum and positive market environment, we now anticipate full-year AUM growth of around 18%. The broad economic backdrop remains supportive. The government's continued trust on retail consumption, along with structural reforms such as GST rate reduction and income tax rationalization, is expected to further strengthen housing demand in the coming quarters. Additionally, a conducive interest rate scenario continues to support affordability and demand momentum in our core segments. Furthermore, government initiatives like the Interest Subsidy Scheme (ISS) under PMAY 2.0, coupled with a stable interest environment, continue to support home buyer sentiment and affordability. We are pleased to report that over 2,300 Aavas customers have already benefited from these schemes, receiving subsidies amounting to more than INR 75 million. As we look ahead, our long-term strategic priorities remain clear: to fully leverage our strong digital platforms, distribution network, further strengthen governance, drive scale efficiently, optimize cost, and enhance productivity across the organization. With that preamble, I will now take you through our quarterly performance. After crossing the INR 200 billion milestone earlier this year, our AUM has now reached INR 214 billion. During Q2 FY2025, we disbursed loans worth INR 15.6 billion, registering a 36% sequential and 21% year-on-year growth, while maintaining our strong focus on quality origination and prudent underwriting. Our net profit for Q2 FY2026 grew by 11% year-on-year to INR 1.64 billion, led by robust 18% year-on-year growth in NII on account of healthy improvement in spread. Our net worth continues to compound steadily, growing at 16% year-on-year with the strength of our capital position driven by consistent compounding internal accruals. Our NIMs expanded by 56 basis points, sequentially to 8.04% during the quarter. This improvement was supported by significant improvement in the spread, coupled with our continuous focus on risk-adjusted pricing, which resulted in a 10 basis points increase in the incremental business yields over H1 FY2025. Our OPEX to asset ratio saw a marginal increase of 5 basis points, sequentially to 3.51%, while cost-to-income ratio declined by 260 basis points quarter-on-quarter to 43.7%, reflecting the improved efficiency gains. Our asset quality remains pristine, with 1+ DPD below 5%, improved by 16 basis points sequentially to 3.99% as of September 2025, while GNPA levels remain stable at 1.24%. Credit costs improved sharply by 8 basis points sequentially to 16 basis points, driven by lower 1+ DPD flow and improvement in stage two buckets. We continue to maintain our guidance of keeping the credit cost below 25 basis points on a sustainable basis. Our ROA improved significantly by 46 basis points sequentially to 3.4%, and ROE improving by 175 basis points quarter-on-quarter to 14.31%. We remain committed to delivering quality, profitable, and sustainable growth powered by tech-led efficiency and cost optimization. With a robust risk management framework, deep and diversified distribution network, and the strong execution capabilities of our experienced team, we are confident of achieving our strategic milestones and delivering long-term value to all stakeholders. With that, ladies and gentlemen, I would now hand over to our CFO, Kanchan Rawat, to discuss the financial in detail. Thank you, Sachinder. Good evening, everyone, and a warm welcome to our earnings call. To provide an update on borrowing first. Our liability to improve the cost of fund continues to underscore the strength and resilience of Aavas Wealth Diversified Liability Franchise with many long-term partners linked to various benchmarks. In line with our strategy of innovation in liability sourcing, we proactively anticipated a potential softening in interest rates and strategically shifted a sizable portion of our borrowings to ABLR-linked instruments and a short-term NCLR structure. This forward-looking approach has continued to yield tangible benefit in Q2, as our liabilities are repricing faster than those of many peers. This positions us well to maintain a competitive cost of fund while supporting sustainable quality growth. As a result, we have seen an additional 17 basis point improvement sequentially in our cost of fund on overall cost of borrowing. Our spread improved sharply by 34 basis points year-on-year to 5.23% in Q2, while the calculated spread increased by 59 basis points year-on-year to 6.27% in Q2 FY2026. We continued to borrow, judiciously raising around INR 13.96 billion at a competitive rate at 7.83% in Q2 FY2026. Our average tenure of borrowing continued to be longer than that of our assets, ensuring a positive ALM across all time buckets. As of 30th September 2025, total outstanding borrowing stood at INR 186.87 billion. The borrowing mix, as of 30 September 2025, comprised of 50% from loans from various banks and institutions, 25% from assignments, 14% from National Housing Bank refinancing, and 11% from debt capital market. We have an optimum mix of various benchmarks of interest rates, such as 36% borrowing linked to external benchmarks such as RAPO, T-Bill, MIBOR, and 25% linked to sub-three-month NCLRs, enabling faster repricing of nearly 61% of our borrowings in line with the interest rate movements. Lender support remains strong as Aavas continues to evolve. We maintain access to diversified and cost-effective long-term funding. Our relationship with development fund institutions remains robust, supporting our strategic fundraising goals. As of 30th September 2025, we maintain ample liquidity, including cash and cash equivalent, an unavailed cash credit limit of INR 18.94 billion, and a documented unavailed sanction of INR 21.51 billion. Profitability and capital position: Our net total income in absolute terms grew by 18% year-on-year in Q2 FY2026. Net interest margin, as a percentage of total assets, expanded by 26 basis points year-on-year to 8.04% in Q2 FY2026. We remain well-capitalized, with a net worth of INR 46.8 billion and a capital-to-risk-weighted average assets ratio of INR 45.9%, significantly above regulatory requirement. Now, I would like to hand over the line to CRO, Mr. Ashutosh Atre, to discuss the asset quality. Thank you, Kanchan. Good evening, everyone. I am pleased to share the key portfolio risk parameters with you: asset quality and provisioning. Aavas is strongly positioned to continue delivering industry-leading asset quality. Our asset quality remains within the guided range, with one day past due well below 5%, at 3.99% in Q2 FY2026, and gross stage three and net stage three under 1.25% stood at 1.2524% and 0.84%, respectively. From a geographic perspective, asset quality in our home state continues to remain healthy. The average 1+ DPD and GNPA stood well below 4% and 1.25% of AUM. Similarly, in our emerging market, we are observing healthy credit performance, with 1+ DPD and GNPA levels remaining comfortably within 3.5% and 1% of AUM, respectively. Our ECL provisioning, including that for COVID-19 impact as well as resolution framework 2.0, stood at INR 1.21 billion as of 30th September 2025. Our disciplined underwriting standards, coupled with proactive risk management framework, have enabled us to stay ahead of emerging microeconomic challenges. While several peers have reported asset quality pressure due to sectoral or regional headwinds, our portfolio has remained resilient. We continue to follow a rigorous credit assessment process, stress-tested across multiple economic scenarios, and remain selectively calibrated in our exposure to higher risk segments. This approach has helped us preserve asset quality, which continues to rank among the best in the industry. With this, I open the floor for Q&A. Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Renish from ICICI. Please go ahead. Yeah, hi sir. Congrats on a good set of numbers. Sir, my first question is on basically yields. Right? So while our spread expanded for the last two quarters, but it is largely driven by cost of fund benefit, and yield continues to fall. You know, so what explains the drop in yields on a sequential basis? Where do you see yields settling in near term? Because at some point in time, we also have to review our PLR, and given that we have some reduction in cost of fund, we might have to lower our PLR maybe in the next couple of quarters. Where do you see the yields settling and ultimately spread? Thanks, Renish. I think, as highlighted earlier, our incremental business yield is still lower than our existing portfolio yield, which naturally pulls down the blended portfolio yield. This has been the key driver of the five basis points compression during the quarter. Additionally, in the current environment of heightened asset quality concerns and tighter credit conditions, we believe it is prudent to underwrite better quality, lower-risk customers, even if there is a spark compression in the disbursement yields and cite lower pricing. The intent is to protect portfolio quality and maintain long-term risk-adjusted returns. This said, positive momentum on placement yields with 10 basis points year-on-year improvement in H1 FY2026, and gap between incremental yield and portfolio yield has narrowed meaningfully. Again, just to elaborate that we've taken some structural actions to support the yield sustainability, sharper focus on the lower ticket size and new-to-credit customers, where yields are structurally higher, deeper penetration in some of the underserved geographies, and high-yielding product segments, along with deviation matrices and system-based guardrails to ensure pricing discipline is there on the ground. I think this all will really help us to do. I think the positive part on the Renish is that we have had momentum continue on the yield side as we speak. The second question on fuels was on the PLR. We are closely monitoring the rate environment. So far, we have not seen a meaningful reduction in MCLR from the banks, and therefore the full transmission of lower rate has not yet taken place on the liability side. That said, our incremental disbursements are already being priced competitively, which means our incremental spreads are still lower than the reported portfolio spread. In fact, our effective yields are already lower than most peers. We are also addressing customer-level retention selectively, and I think we will continue to evaluate the cost of funds, Renish. Based on how the MCLR transmission plays out in the coming quarter, the LCOO will review and take a considered view on revising the PLR. Okay. So basically, let's say till September 2025, whatever benefit we got on the borrowing side, let's say there is no further benefit on the cost of borrowing, we'll keep PLR where it is currently. Is that the presumption? I think at LCOO, we will review and take a considered call based on the scenarios that emerge in the coming months. Okay. Okay. Got it, sir. Sir, my second question is on the cost side, right? So we've been highlighting that we have taken many initiatives to improve productivity and bring down cost ratios. But somehow our cost-to-income is still right around 41%-42%, even if adjusted for reserve cost. Versus peers, we are below 35%, so there is a gap. When do you see this cost-to-income ratio converging towards industry average? Renish, the movement in OPEX to asset ratio this quarter is largely operational and timing-related rather than structural. This reflects the employee decisions which were made as a part of our branch and distribution expansion plan. However, since disbursement was relatively softer, the cost-to-asset ratio appears temporarily elevated. If you look at it, there is a 14% year-on-year increase in the number of employees. This includes 1,150 employees we added. We still have the monetization of that to happen. I think that is one part. This is as a part of investment which we look at as we speak. We have added branches in Tamil Nadu. Still, they have to come to a level where it starts being productive as we speak in the coming quarters. Now, if you exclude the ESOP expense, the year-on-year increase in the OPEX ratio would have been 16 basis points since Q2 of last year had ESOP reversals, which created a base effect. This all being a denominator effect with muted asset growth in the quarter, the benefit of operating leverage has still not flowed in. On the positive side, as I reflected, the cost-to-income ratio has improved by 262 basis points sequentially, indicating that the cost structure is already beginning to stabilize. Okay. So this trend will continue going forward? I mean, that's what you are trying to highlight? No. We have actually guided that we are committed to bringing the OPEX to asset ratio below 3% over the medium term. As disbursement scale, AUM growth normalizes, and technology and branch productive benefits continue to accrue, we expect operating leverage to further steadily improve. Okay. Okay. That's it, sir. Thank you and best of luck. Thanks, Renish. Thank you. The next question is from the line of Kunal Shah from Citigroup. Please go ahead. Yeah. Hi. Thanks for taking the question. Firstly, on assignment income, overall, when we look at it compared to the assignments which were done, in fact, the run rate used to be quite high. Is there anything, maybe is it more of a demand-supply thing, or is there anything in the? Hi, Kunal. If you see assignment volume perspective, we are, I think, what we do every quarter, every H1, it is not much change as our AUM growing. We generally keep between 15-20% growth in the assignment in the volume. More particularly, now this year, our assignment we used to do last year roughly 8.5% or plus. Now we are doing 7.5% plus, basically. Almost 100 basis points saving, which is giving us a better, let's say, spread and better income generation on that assignment if we do same transition during this year. That is a positive impact is coming on the income side. Okay. This was not there in first quarter, or it was there in first quarter as well? First quarter is right. Compared to the first quarter, it seems to be high. Yeah. First quarter's rate started to falling. So we got some benefit. But quarter two, we got a very good amount of benefit in the spreads. Okay. This will continue. Now incrementally, we will be doing it at this spread only? Yeah. Incrementally till any, we see reversal, interested scenario till we hope that this trend will continue. Sure. Got it. Secondly, on the disbursement side, the entire impact of maybe the change in the recognition which was there, has it played out in Q2 itself, the entire rollover effect, or will there be something which will flow through in Q3 too? Kunal, we've regained healthy momentum, delivering 36% Q-o-Q and 21% Y-o-Y growth in disbursement. Over the last five months, our monthly disbursement run rate has remained above INR 500 crore. With H2 being seasonally strong for us, we are working towards taking this run rate to the INR 650 crore-700 crore kind of range. On the demand side, monthly login volumes have remained robust at 15,000+, reflecting about 23% Y-o-Y growth. In that sense, we work towards achieving our AUM growth aspiration. We want to be clear that the portfolio quality remains good. I think whatever was on the Q1, it has played out in Q2, and we do not see any of that really coming in the coming quarter, so to say. As I stated, we have stabilized and we are there on a normal pace, which is required at a normal steady state. Got it. Got it. Lastly, on repayment rate and BT out. BT out is now 5.7%. If you look at across the product segment, it seems like it has gone up a bit on the home loan, while maybe I think the mortgages and all have almost remained steady. In fact, mortgages also, it is up a slight bit. Maybe any pressures in any particular states or with any particular customer profile, if you can highlight that. Yeah. Thanks. Kunal, our BT out rate for H1 stands at about 5.3%, which is around 10 basis points higher than the same period last year. Specifically in Q2, BT out was at around 5.7% compared to 4.9% in Q1. If you are comparing that, it is indicating a normal seasonal variation. We have actually deployed predictive analytics to ensure that we engage with potential BT out customers. That is what we really continue to do. We will continue our retention measures. At this period of time, we do not see anything which is on the alarming side. What we have seen, other than the BT, was the repayment rate, which increased by around 200 basis points, actually. These are part repayments at around this was driven by more higher repayments, and this was incrementally higher outflow which happened this quarter. Perfect. Yeah. Note, Kunal, if I were to look at it, there is increase in the part repayment is also reflective of improved credit behavior and liquidity at a borrower end, which continues to be a positive indicator on asset quality. Got it. Thanks. All the best. Thanks, Kunal. Thank you. The next question is from the line of Abhijit Tibrewal from Motilal Oswal. Please go ahead. Yes. Good evening, sir. Thank you for taking my question. Firstly, on asset quality, while our 1+ DPD has improved by about 15 basis points in Q2, which is appreciable. In your opening remarks and Sachinder's opening remarks, I remember hearing you speaking about what has helped us achieve this asset quality. At the same time, you also acknowledged in your opening remarks that you remain cautious because of what you are seeing in some of the industry peers. Some of the industry peers have called out localized pain in various pockets, right? Some calling it some spillover from MFI, MicroLab into affordable housing. Some saying it is more to do with U.S. tariffs, which has impacted a few industries, right? Whether it be diamond, gems, jewelry, textiles, leather, right? Is there anything that we are seeing at our end, right, which you are monitoring now, right, while your asset quality is holding up well? Something that you are monitoring at your end? Thanks, Abhijit. I think overall, as you were talking about the tariff impacted, I think if you look at the entire portfolio level, less than 1.8% of AUM would be impacted by those tariff-related items because we are in an unassessed and those segments of customers which are there. We are seeing pockets of stress, but not material at the portfolio level in certain geographies, and we have taken corrective actions. This is where typically states like Karnataka, Madhya Pradesh had seen, and Gujarat had some part of tariff industry-related disruptions in Surat. We have a limited impact on that as far as this is concerned. In Karnataka, the MFI-related disruption, because of the ordinance, we acted early by tightening the credit filters, slowing down disbursement in affected micro markets, and strengthened field verification. The situation is stabilizing, and we continue to operate with the rightful cautious mode in these specific pockets. As far as Madhya Pradesh is concerned, there is a stress which is localized to the eastern belt of MP. We have selectively tightened our underwriting and adopting a stance which is with sharper credits and income assessment standards. As highlighted, the 1+ DPD continues to remain contained at less than at around 4%, which is encouraging and reflects a low opening flow of new cases. We have also seen an improvement in stage two, indicating better stability in early delinquency buckets, Abhijit. Got it. Got it. Thank you for that. Sir, the second question I had is, I mean, this quarter, this first half, right, I mean, the AUM growth is starting around 16% year-on-year. And I mean, what we've started seeing in the last two quarters is in your presentation, you started sharing your aspiration of where you want to scale up your AUM by FY2030, which is about INR 55,000 crore. And this then kind of translates into almost a 23% kind of an AUM target from now to FY2030. So I'm just trying to understand now that CVC is clearly working along with you. In addition to expansion in Southern India and the digital transformation now complete, what are the other changes that you are making, right, which kind of makes you put out that aspirational target of getting to INR 55,000 crore by FY2030? See, on a 20%+ annual growth over the next five years is driven by a combination of following factors. If I were to really point out, one is the geographic expansion. Second is the employee productivity enhancement and investment in technology and sourcing channels. I'll give you a broad breakup. 8% will be driven by branch expansion in our existing footprint and the new states. 7%-8% comes from our productivity enhancement, and 5% is expected from an inflation-led increase in the ticket size. As we enter, as we speak, Abhijit, we have, as I spoke, that Tamil Nadu, Andhra Pradesh, and Telangana, these are the three open states which are available for us to really venture in and bring our footprint available. That is the open landscape available. Plus, as I said, that from a digital sourcing perspective, we have diversified our mix by having digital channel like CSC, Mitra, and others. That volume also we started seeing a steady increase in the volumes month-on-month and quarter-on-quarter basis. We are optimistic with these implementations and with some of the projects which we have worked across to really get that in motion. We are confident as a management team that we will be able to deliver on the guided level of 20%+ annual growth over the next five years. Got it, sir. I mean, one other question I had is, I mean, while you said, right, the BT outs are still calibrated 5.3% for 1H, somewhere around 5.7% for the second quarter. I mean, there are other peers who've kind of now started calling out that, hey, the BT outs or the portfolio efficient is elevated, primarily because, in addition to banks being aggressive, now there are a lot of balance transfers which are happening to other peer affordable HFCs as well. Is that not something which is kind of worrying us? I think we were very proactive. Abhijit, if you look at ours, we have deployed predictive analytics to really identify and engage with the potential BT out customers proactively. The other part, Abhijit, is that in-house sourcing model, unlike the others where it is either a channel-led or led by the partners, I think our in-house sourcing model also enables us that we have deeper customer relationships and stronger retention. I think these are the two parts which really flew out for help us in this scenario. For strong credit customers, we offer selective rate rationalizations or top-up wherever we feel. Again, if you really look at it, the customer behavior, wherever there is a BT out performance, we let the customer exit. Other one, historically, the portfolio we let go performs 3x worse than that was in our books. Validating that the disciplined approach to the portfolio quality over volume is what we really embark upon, actually. I think when there is a possibility of holding the customer rightfully so on his cash flow-based underwriting stuff, we continue to hold. Wherever we let go, the performance really deteriorates. Historically, that is what we've seen. We are mindful of the fact that whatever our predictive, our efforts will continue to hold this in coming times. Got it. Thank you. I wanted to sneak in one last question. While I do not feel too good asking you this, right, but somewhere during the quarter, right, it has had an impact on the stock price. As you will appreciate, right, there have been speculations and media articles, right? Just trying to understand, I mean, is everything okay when it comes to our promoter, everything going in the right direction? Yeah. So Abhijit, let's not mull over on the pure market speculations. All I can say is I'm here and fully committed to Aavas and its performance. And so is the Aavas board and the promoter group. Got it, sir. This is useful. Thank you so much. Thank you. The next question is from the line of Vishal Ghelani from ASK Investments. Please go ahead. Yeah. Hi team. Congrats on a good set of numbers. Sir, I have two questions. First is, I want you to understand your thoughts on dividend payout, given you are well capitalized and the change in ownership is happening. The second question was with regards to you told that eastern belt of Madhya Pradesh is facing problems. Can you please highlight why they are facing such problems, sir? Thank you. Yeah. Obviously, your question is valid to ask from a shareholder side, and what is about the dividend. You know, affordable housing, all stack, whether we are or all peer group, is growing at a good pace. As Sachinder mentioned, I think we are embarking 20%-25% growth rate in the next five years. Keeping that thing in mind, I think we will need whatever we have excess capital as of now to meet our growth plans. Once we reach at a level where ROE versus growth is a good, let's say, crossing to at a good level, a steady state basis, we will start to pay back the dividend to shareholders. As regard to MP, I think Ashutosh is, I think he's right to answer your question. Vishal, this is regarding, see, we have a process of understanding the portfolio based on various cuts, geographically, ticket size-wise, and various other cuts. In that comparative study within Madhya Pradesh, we found that in the eastern belt, we had few cases going bad. That is the reason Sachinder mentioned that within Madhya Pradesh, one belt was showing some kind of a stress in a few cases. We have taken corrective actions. We have brought senior people in credit and taken the learnings from this. It is a comparative statement when we were talking about statewide and then further zonal and further cuts on the state. That's it. Overall, I think as a company, we are very comfortable on assets quality, either bouncing rate or 1+ or 90+. Bouncing rate is steady state basis. I think we did not see any much change. 1+ is improved in last, but I think we gained back our momentum and touching less than 4% now. In next two quarters, it starts to show in the results in the 90+ also. Just to add on, there has been no meaningful increase in our bounce rate. They continue to remain stable at around a gross of 18% net at 13.5%, which is broadly in line with the level seen in quarter two and H1 of last year. Got it. Got it. Sir, I just had one more question. We keep hearing, we keep, what do you call, reading the self-fair report, which generally highlights that employee attrition challenge, given that we are very tight credit filters, which is very good in long term, but in near term, what do you call, if it affects the it increases the employee attrition. How would you like to address the challenge for employee attrition on all? See, attrition for FY 2025 has come down by 7 percentage points from FY 2024 level. During quarter two FY2026, it has further reduced by 100 basis points to 17% in Q2 versus 18% last year. What we have done is we are benefiting out of our regional HR strategy where we have ensured that HR person presence in every region to address ground employees' concerns, motivate them, engage them, and train them. All of this really helps us to maintain the levels at which we really are desirable. Got it. Wishing you all the best of future quarters. Thank you. Thank you. Thank you. The next question is from the line of Shreepal Doshi from Equirus Securities. Please go ahead. Hi sir. Thank you for giving me the opportunity. My question was pertaining to lending rate. What is our incremental lending rate in HL and MSME? At the overall mix level, as Sachinder mentioned, and we are almost 25 basis points lower than our overall portfolio yield at this moment, which is very much in line with our strategy because cost of borrowing is continuously falling. Our incremental cost of borrowing is almost 60 basis points plus better than the last year. So it is affordable to us in our growth as well as maintaining the spread strategy. Got it. And sir, so with the cost of fund benefit flowing in, what is our PLR strategy in the second half? We are, I think Sachinder addressed this question. Again, I will elaborate. We are, let's say, in the banks and all over my large lending quarter, the short-term MCLR got readjusted, but it's still six months and above MCLR yet to pass the benefit. We are closely watching the interest rate scenario. If we see steady state basis, our cost of borrowing is falling. So definitely, we will think to reduce our PLR, and we will consider this thing in the next ALCO. However, our new we are already passing a few benefits to the new acquisition of customers. So that we will remain in the competitive curve. Got it. Got it. Sorry for, I mean, asking this question again because I joined the call a little late. Thank you for answering my question. Thank you. Thanks. Thank you. Participants who wish to ask a question may press star and one. The next question is from the line of Nischint Chawathe from Kotak Securities. Please go ahead. Hi. Thanks for taking my question. This is actually just a follow-up. You mentioned that your incremental cost of funds is 60 basis points lower, and incremental spread is around 25 basis points lower. Does it mean that the incremental lending rate is around 100 basis points lower than the book rate? No, no, no. My incremental lending rate is 25 basis points lower than my total AUM rate. That is within our strategy because my incremental cost of borrowing is almost 60 basis points better than the last year. Your incremental spreads are, I mean, technically better than your book spreads. That is converting in the better spread. No, no. So what it means is that your incremental spreads are actually better than the book spreads. Yeah. Incremental, it's right. Incremental. Yes. No, no. I'm trying to say that the incremental spread is today higher than the book spread. It's right. You're right. Yeah. If I compare incremental, it's right. I think Nischint 's highlighted that the improvement in the spreads, what we in the kind of yields which we are doing, and we highlighted that the sequential improvement quarter- on- quarter and year- on- year. Yeah. Got it. Got it. Okay. Thank you very much. Thanks, Nischint. Thank you. Next question is from the line of Mona Khetan from Dalal Capital. Please go ahead. Yeah. Hi. Good evening, sir. Thanks for taking up my question. I have two questions. Firstly, in our sourcing mix, is there any contribution of DSA, if any? I think as a part of the alternate strategy, we have CAC, EMITRA, the others which really come across and build across. From a pure perspective of DSA, I think it is not meaningful at this period of time from our state. We continue to do it more from a direct source channel through an allied channel which are CAC, EMITRA, MITRA, and which are around our ecosystem, so to say. Okay. So it would be fair to say that it's sub 5%? Yeah. It is less than 10%. Less than 10%. Okay. Secondly, if you could share the AUM mix based on ticket size less than INR 0.5 billion, INR 0.5 billion-INR1.5 billion, and above INR 2.5 billion? That's there. If there. If you look at the presentation, it's available on the presentation in detail one. That's on the number of loans. I was looking for the AUM mix. That's based on the number of loans. Rakesh, our investor relations will come back to you on the specific data if you are really referring to on the value side. Yeah. Sure. Sure. Thank you. Just to give you a broad scope, around less than INR 25 lakh, we have around 76.7%. That's around 77% is below INR 25 lakh. Okay. So okay. About 23% of the AUM is above INR 25 lakh. Right. That's right. Anything on less than INR 5 lakh as well? Less than INR 5 lakh, it's around 11%. 11% of AUM. Yeah. Right. Okay. Do you also have between 5-15 or sub-15 will also work? Those are very finer details. I think these are business intelligence. I think we don't share all this much in detail. Sure. Thank you. And all the. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Sachinder Bhinder for closing comments. Ladies and gentlemen, as we conclude today's earning call, I would like to extend my sincere gratitude to each of you for your time, engagement, and continued support. The progress we've made is a testament to our unwavering dedication of our team, the trust placed in us by our shareholders, and the enduring loyalty of our customers. Looking ahead, we remain optimistic about the opportunities that lie before us. We are confident that our strategic initiatives underpinned by prudent risk management and a customer-centric approach will continue to deliver sustainable growth and long-term value for all our stakeholders. Should you have any further questions or require additional information, please feel free to reach out to Rakesh Shinde, our Head of Investor Relations. Thank you once again and wish you all the best in the days ahead. God bless. Thank you, everyone. Thank you. Ladies and gentlemen, on behalf of Aavas Financiers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.