Aye Finance Reports Q1 FY27 Results: Net Profit Surges 144% YoY to ₹74.5 Crore; AUM Reaches ₹7,324 Crore

Technology-driven micro-enterprise lender Aye Finance Limited has announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27).

The Non-Banking Financial Company (NBFC) registered a 144% year-on-year surge in Net Profit After Tax (PAT), supported by a continuous decline in credit costs, strengthening operating leverage, and robust loan disbursements.

Financial Highlights for Q1 FY27

(All financial figures in ₹ crore, unless otherwise specified)

Net Profit After Tax (PAT): Rose 143.9% year-on-year to ₹74.50 crore for Q1 FY27, compared to ₹30.59 crore in Q1 FY26 (and ₹85.91 crore in Q4 FY26).

Total Revenue from Operations: Grew 17.7% year-on-year to ₹477.37 crore, compared to ₹405.46 crore in Q1 FY26. Interest income stood at ₹452.67 crore (vs. ₹359.28 crore in Q1 FY26).

Total Income: Advanced 18.1% year-on-year to ₹489.66 crore (inclusive of ₹12.29 crore in other income), compared to ₹414.63 crore in Q1 FY26.

Profit Before Tax (PBT): Expanded 137.6% year-on-year to ₹97.15 crore, up from ₹40.89 crore in Q1 FY26.

Net Profit Margin: Stood at 15.22% for the quarter.

Return Metrics: Return on AUM (RoAUM) stood at 4.2%, while Return on Equity (RoE) came in at 11.7%, reflecting the expanding capital base following its primary equity raise in Q4 FY26.

Earnings Per Share (EPS): Basic EPS for the quarter stood at ₹3.02 per share (face value ₹2/- each, not annualized), with an annualized EPS of ₹12.08.

Business & Asset Quality Performance

Assets Under Management (AUM): Reached ₹7,324 crore as of June 30, 2026, marking a 28% year-on-year growth from ₹5,721 crore in Q1 FY26.

Disbursements: Grew 22% year-on-year to ₹1,219 crore compared to ₹1,001 crore in Q1 FY26.

Borrower Addition: Added 44,736 new borrowers in Q1 FY27-a 38% YoY increase in customer onboarding.

Gross & Net NPA: Gross Stage III ratio (GNPA) improved to 4.49% (down 28 bps QoQ), while Net Stage III ratio (NNPA) stood at 1.67% (down 12 bps QoQ).

Provision Coverage Ratio (PCR): Enhanced by 14 bps quarter-on-quarter to 63.80%, reflecting prudent risk management against macro uncertainties.

Credit Cost: Reduced for the sixth consecutive quarter to 4.01% in Q1 FY27, down from 4.30% in Q4 FY26.

Credit Rating Upgrade: Upgraded to IND A+ (Stable Outlook) by India Ratings & Research in June 2026.

Expense Breakdown

Total expenses for Q1 FY27 stood at ₹392.51 crore, compared to ₹373.74 crore in Q1 FY26 and ₹421.03 crore in Q4 FY26:

Employee Benefits Expense: Stood at ₹138.64 crore (vs. ₹113.80 crore in Q1 FY26).

Finance Cost: Accounted for ₹130.61 crore (vs. ₹126.33 crore in Q1 FY26).

Impairment on Financial Instruments: Reduced to ₹81.41 crore (vs. ₹86.71 crore in Q1 FY26).

Other Expenses: Accounted for ₹35.68 crore (vs. ₹29.71 crore in Q1 FY26).

Depreciation & Amortization: Stood at ₹6.17 crore (vs. ₹5.10 crore in Q1 FY26).

Total Tax Expenses: Came in at ₹22.65 crore (comprising current tax of ₹27.20 crore and deferred tax credit of ₹4.55 crore).

Capital Structure & Balance Sheet Ratios

Net Worth: Reported at ₹2,528.01 crore as per regulatory notes (and ₹2,603 crore overall).

Capital to Risk-Weighted Assets Ratio (CRAR): Stood strong at 42.38%, well above regulatory requirements.

Liquidity Coverage Ratio (LCR): Comfortably placed at 269.61%.

Debt-Equity Ratio: Stood at 2.22 times.

Total Debt to Total Assets: Positioned at 66.77%.

Commenting on the performance, Mr Sanjay Sharma, Managing Director, Aye Finance Ltd, said, "Our Q1 FY27 performance reflects the robustness of our cluster-based underwriting model in serving India's micro-enterprise segment. We delivered 144% improvement in PAT and 28% growth in AUM YoY, with a 29bps reduction in our credit costs. The improvement in asset quality alongside strong profitable growth demonstrates the management's philosophy of scaling up with good credit discipline"

Shares of Aye Finance Limited was last trading in BSE at Rs. 189.60 as compared to the previous close of Rs. 171.25. The total number of shares traded during the day was 543922 in over 5927 trades.

The stock hit an intraday high of Rs. 197.95 and intraday low of 174.10. The net turnover during the day was Rs. 103883691.00.

Source : Equity Bulls

Keywords

AyeFinance INE501X01029 NBFC Q1FY27 Q1FY2027 ResultUpdate