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Results · Financial Services

Aye Finance Q1 profit jumps 144% YoY to ₹74.5 Cr

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Date
Company
Aye Finance
What it does
Non-banking financial company
Kind
Results
Sector
Financial Services

What they do

Aye Finance, a listed non-banking financial company (NBFC), reported a 144% year-on-year increase in net profit to ₹74.5 crore in the quarter ended June 2026

What happened

The company's assets under management (AUM) grew 28% YoY to ₹7,324 crore, and it added 44,736 new borrowers during the quarter

Why it matters

Aye Finance plans to raise up to ₹4,000 crore via non-convertible debentures (NCDs) on a private placement basis, subject to shareholder approval

The details

  • Aye Finance reported a 144% increase in net profit to ₹74.5 crore in Q1 FY27 compared to ₹30.6 crore in the same period last year.
  • The company's revenue from operations rose 17.7% to ₹477.4 crore from ₹405.5 crore a year ago, but declined 7.3% from ₹515.1 crore in Q4 FY26.
  • Interest income, the company's biggest revenue contributor, increased to ₹452.7 crore during the quarter from ₹359.3 crore a year earlier.
  • Total expenses rose 5% to ₹392.5 crore in Q1 FY27 from ₹373.7 crore a year ago, but declined 6.8% from ₹421 crore in Q4 FY26.
  • Assets under management (AUM) grew 28% YoY to ₹7,324 crore, and the company added 44,736 new borrowers during the quarter.
  • Loan disbursements increased 22% YoY to ₹1,219 crore during the quarter, but declined 26.3% sequentially from ₹1,655 crore in Q4 FY26.
  • Net worth of the company stood at ₹2,528 crore as of June 30, 2026, with a capital adequacy ratio of 42.38%.
  • Gross non-performing assets (GNPA) declined 28 basis points sequentially to 4.49%, while net non-performing assets (NNPA) decreased 12 basis points to 1.67%.
  • Credit cost declined to 4.01% in Q1 FY27 from 4.30% in Q4 FY26, marking the sixth consecutive quarter of improvement.
  • Aye Finance plans to raise up to ₹4,000 crore via non-convertible debentures (NCDs) on a private placement basis, subject to shareholders’ approval at the upcoming annual general meeting (AGM).

The bigger picture

  • The company's net profit surged 144% YoY, indicating strong performance in the non-banking financial services sector.
  • The decline in non-performing assets suggests improved loan quality and risk management.
  • The increase in AUM and new borrowers highlights the company's growing market presence and customer base.
  • The decline in credit cost to 4.01% reflects efficient operations and better risk management.
  • The planned NCD raise of ₹4,000 crore indicates the company's need for capital to support its growth and expansion plans.

About the business

  • Aye Finance is a non-banking financial company (NBFC) that provides quick, reliable, and flexible credit solutions for India's small businesses.
  • The company offers various loan products, including Secured Hypothecation Loan, Unsecured Hypothecation Loan, Mortgage Loan, Shakti Loan, and SwitchPe.
  • Aye Finance's assets under management (AUM) grew 28% YoY to ₹7,324 crore, indicating strong growth in its financial services portfolio.
  • The company has 6,70,372 customers, 571 active branches, and operates in 21 states across India.
  • Aye Finance's NPS score is 72.20, and its retention rate is 47.26%, indicating customer satisfaction and loyalty.

What happens next

  • Aye Finance expects its assets under management (AUM) to grow 25%-30% in FY27.
  • The company has guided for a return on assets of 4%-4.5%, credit cost of 3.5%-4%, operating expenses of 8.25%-8.75% of average assets, and a net interest margin of 14.25%-14.75% for FY27.

The deal

Type
results

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