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Aye Finance Records 28% Portfolio Growth to ₹7,329 Crore in Q1 FY27 with Improved Asset Quality

Posted On : 2026-07-06 22:26:31( TIMEZONE : IST )

Micro-enterprise lender Aye Finance Limited has released its provisional business highlights for the first quarter of the 2027 fiscal year, delivering strong year-on-year growth across its credit portfolio, substantial retail customer onboarding, and a sequential improvement in its non-performing asset metrics.

Robust Loan Portfolio Expansion and Customer Acquisition

Aye Finance expanded its total Assets Under Management (AUM) by 28% year-on-year, climbing to ₹7,329 crore for the quarter ended June 30, 2026, up from ₹5,721 crore during the same period in the previous fiscal year. This also marks a 4% sequential expansion when measured against the ₹7,044 crore closed out in Q4 FY26.

This portfolio momentum was heavily supported by a 38% year-on-year surge in the onboarding of new credit consumers, with the company adding 44,736 new borrowers during Q1 FY27 compared to 32,373 in Q1 FY26. Total active borrowers on the company's books rose 18% year-on-year to hit 6,70,570. Loan disbursements for the quarter stood at ₹1,219 crore, reflecting a 22% increase over the ₹1,001 crore disbursed in Q1 FY26, though compressing by 26% sequentially against the high-base quarter of Q4 FY26.

Employee Productivity and Operating Leverage

The company managed its operational footprint to drive internal efficiency gains. The total workforce grew by 14% year-on-year to 10,891 employees, remaining flat compared to the 10,894 staff members logged in the previous quarter.

By scaling the underlying loan portfolio at a faster trajectory than its headcount, the non-banking financial company (NBFC) extracted higher operating leverage. This led to a 12% year-on-year and 3% quarter-on-quarter expansion in employee output metrics, with the company's average AUM per employee advancing to ₹0.67 crore in Q1 FY27 from ₹0.60 crore in Q1 FY26.

Softening NPA Levels and Stable Collection Efficiencies

In terms of asset quality, the lender recorded a sequential reduction of 20 basis points in Gross Non-Performing Assets (GNPA). The GNPA ratio settled at 4.57% for the quarter ended June 30, 2026, improving from 4.77% in Q4 FY26 and 4.60% in Q1 FY26. The total Portfolio at Risk (PAR X), representing all overdue tranches across past-due-date buckets, stood at 7.08%, which is a structural reduction from the 7.96% recorded in Q1 FY26, despite a minor increase from the 6.88% registered in Q4 FY26.

The underlying collection efficiency matrices remained resilient through the quarter. The average Non-Overdue Collection Efficiency for Q1 FY27 was recorded at 99.2%, maintaining a stable month-on-month trend line of 99.1% in April, 99.3% in May, and 99.3% in June. For Bucket 1 cases-representing overdue accounts lingering below 30 days past due-the collection efficiency averaged 54.5% across the quarter, tracking at 57.1% in April, 51.2% in May, and 55.2% in June.

Management noted that the strong demand for credit across its target micro-enterprise segments continues to clear a strong path for growth, and expects the improving trends in underlying asset quality to accelerate through the remainder of the 2027 fiscal year. All highlighted metrics remain provisional subject to finalized reviews by statutory auditors and final clearance by the company's Audit Committee and Board of Directors.

Shares of Aye Finance Limited was last trading in BSE at Rs. 174.80 as compared to the previous close of Rs. 176.05. The total number of shares traded during the day was 39434 in over 492 trades.

The stock hit an intraday high of Rs. 175.90 and intraday low of 168.15. The net turnover during the day was Rs. 6807880.00.