Key Takeaways
- • CVC Capital's vehicle Aquilo House holds Aavas Financiers shares worth approximately Rs 4,411 crore at the November 12 close of Rs 1,138.20, against an acquisition consideration of Rs 6,587 crore, a mark-to-market loss of roughly Rs 2,176 crore (about 33 percent) roughly 16 months after CVC took control in June 2025.
- • National Housing Bank scrutiny of loans worth Rs 400-500 crore suspected of misclassification, plus leadership departures including the CEO, CFO and chief risk officer, have pressured Aavas, according to India Ratings' November 4 report.
- • Aavas continued to grow, with first-half FY27 net profit up 16.4 percent to Rs 352.8 crore and assets under management up 16.1 percent, though these gains have not restored CVC's entry valuation.
- • Cohizon Life Sciences (formerly Sajjan India) reported FY26 operating revenue of Rs 954.37 crore, about 40 percent below FY22 levels, and net profit of Rs 76.78 crore, an 80 percent decline from Rs 391.10 crore, amid a prolonged agrochemical downturn and Chinese competition.
- • CVC's wider India record includes monetisations, notably the 2025 sale of 67 percent of Gujarat Titans to Torrent Group for a reported over Rs 5,000 crore and the agreed sale of up to 54 percent of Healthcare Global Enterprises to KKR for up to $400 million.
Summary
Private equity firm CVC Capital Partners, which manages approximately $266 billion in assets, faces a difficult test in India, where two of its three active investments are under pressure from regulatory and industry headwinds, according to Moneycontrol.
The largest mark-to-market setback is at Aavas Financiers, a housing finance NBFC. At the November 12 closing price of Rs 1,138.20, the stake held by CVC's vehicle Aquilo House was worth approximately Rs 4,411 crore against an acquisition consideration of Rs 6,587 crore, a loss of roughly Rs 2,176 crore. Aavas shares are down 22.3 percent in calendar 2026. Moneycontrol first reported that the National Housing Bank had raised concerns about loans worth Rs 400-500 crore on the ground they may have been misclassified. In September, the regulator directed Aavas to pay Rs 1.09 crore in penal charges and repay approximately Rs 12.24 crore of refinancing linked to certain loan pools. In a November 4 report, India Ratings considered the direct financial impact modest but flagged extensive leadership changes, including the CEO, CFO, chief risk officer and other senior executives, along with the departure of two independent directors and a CVC nominee director from the board.
The company's operating performance has held up in parts. First-half FY27 net profit rose 16.4 percent to Rs 352.8 crore and assets under management increased 16.1 percent. Management says it has revamped processes, strengthened system-driven controls and improved accountability. A person aware of CVC's strategy, speaking on condition of anonymity, said the firm views the lender's underwriting and asset quality as enduring strengths and that the regulatory lapses relate to periods before CVC's acquisition. CVC did not respond to an email seeking comment before publication.
CVC's second challenge is Cohizon Life Sciences, formerly Sajjan India, a specialty chemicals maker. Based on regulatory filings and credit rating reports reviewed by Moneycontrol, FY26 operating revenue of Rs 954.37 crore compares with Rs 1,604.05 crore in FY22, a contraction of roughly 40 percent. Net profit fell from Rs 391.10 crore to Rs 76.78 crore over the same period. Profits were Rs 276.04 crore in FY23, Rs 106.15 crore in FY24 and Rs 45.29 crore in FY25, and FY26 saw a 70 percent rebound from that low. CARE Ratings attributes the revenue decline to an agrochemical industry downturn that began in the second half of FY23, when excess distribution inventory weakened export demand and Chinese competition pressured selling prices. CARE also said project delays and pricing pressure have kept utilisation of new capacity subdued. Cohizon management, in its FY26 annual report, said demand and volumes improved but lower realisations constrained revenue, with a better product mix, a growing specialty-chemicals contribution and efficiency measures supporting profit recovery. A source cited in the article said the company has retained key customers and is diversifying into specialty chemicals, though restoring earnings to previous levels would take time.
Against these setbacks, CVC's Indian record includes profitable exits. It invested in cancer-care chain Healthcare Global Enterprises in 2020 and agreed in 2025 to sell up to 54 percent to KKR for up to $400 million (approximately Rs 3,466 crore). It also sold 67 percent of the Gujarat Titans IPL franchise to Torrent Group in 2025 for a reported consideration of over Rs 5,000 crore, retaining 33 percent. The franchise won the IPL in its first season in 2022.
The largest mark-to-market setback is at Aavas Financiers, a housing finance NBFC. At the November 12 closing price of Rs 1,138.20, the stake held by CVC's vehicle Aquilo House was worth approximately Rs 4,411 crore against an acquisition consideration of Rs 6,587 crore, a loss of roughly Rs 2,176 crore. Aavas shares are down 22.3 percent in calendar 2026. Moneycontrol first reported that the National Housing Bank had raised concerns about loans worth Rs 400-500 crore on the ground they may have been misclassified. In September, the regulator directed Aavas to pay Rs 1.09 crore in penal charges and repay approximately Rs 12.24 crore of refinancing linked to certain loan pools. In a November 4 report, India Ratings considered the direct financial impact modest but flagged extensive leadership changes, including the CEO, CFO, chief risk officer and other senior executives, along with the departure of two independent directors and a CVC nominee director from the board.
The company's operating performance has held up in parts. First-half FY27 net profit rose 16.4 percent to Rs 352.8 crore and assets under management increased 16.1 percent. Management says it has revamped processes, strengthened system-driven controls and improved accountability. A person aware of CVC's strategy, speaking on condition of anonymity, said the firm views the lender's underwriting and asset quality as enduring strengths and that the regulatory lapses relate to periods before CVC's acquisition. CVC did not respond to an email seeking comment before publication.
CVC's second challenge is Cohizon Life Sciences, formerly Sajjan India, a specialty chemicals maker. Based on regulatory filings and credit rating reports reviewed by Moneycontrol, FY26 operating revenue of Rs 954.37 crore compares with Rs 1,604.05 crore in FY22, a contraction of roughly 40 percent. Net profit fell from Rs 391.10 crore to Rs 76.78 crore over the same period. Profits were Rs 276.04 crore in FY23, Rs 106.15 crore in FY24 and Rs 45.29 crore in FY25, and FY26 saw a 70 percent rebound from that low. CARE Ratings attributes the revenue decline to an agrochemical industry downturn that began in the second half of FY23, when excess distribution inventory weakened export demand and Chinese competition pressured selling prices. CARE also said project delays and pricing pressure have kept utilisation of new capacity subdued. Cohizon management, in its FY26 annual report, said demand and volumes improved but lower realisations constrained revenue, with a better product mix, a growing specialty-chemicals contribution and efficiency measures supporting profit recovery. A source cited in the article said the company has retained key customers and is diversifying into specialty chemicals, though restoring earnings to previous levels would take time.
Against these setbacks, CVC's Indian record includes profitable exits. It invested in cancer-care chain Healthcare Global Enterprises in 2020 and agreed in 2025 to sell up to 54 percent to KKR for up to $400 million (approximately Rs 3,466 crore). It also sold 67 percent of the Gujarat Titans IPL franchise to Torrent Group in 2025 for a reported consideration of over Rs 5,000 crore, retaining 33 percent. The franchise won the IPL in its first season in 2022.
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