Aye Finance Q1FY27 Profit Surges 144% YoY to ₹74.5 Cr; AUM Grows 28%
Aye Finance reported a 144% YoY surge in Q1FY27 PAT to ₹74.5 Cr. AUM grew 28% YoY to ₹7,324 Cr, with disbursements up 22% YoY to ₹1,219 Cr. GNPA improved to 4.49% and NNPA to 1.67%. Credit costs reduced to 4.01%. The company received a credit rating upgrade to INDA+.
The substantial increase in profitability, strong AUM growth, and credit rating upgrade are material developments that are likely to have a significant positive impact on the company's market perception and financial standing.
The company reported significant year-on-year growth in profit and assets under management, along with improvements in asset quality and credit costs. A credit rating upgrade further bolsters the positive sentiment.
Aye Finance Limited announced its unaudited financial results for the first quarter of fiscal year 2026-27 (ended June 30, 2026). The company reported a significant 144% year-on-year (YoY) increase in Profit After Tax (PAT), reaching ₹74.5 Crores, up from ₹30.6 Crores in the same quarter last year. This growth was attributed to the compounding benefits of scale and tighter risk discipline.
The Gross Non-Performing Asset (GNPA) ratio stood at 4.49%, and the Net Non-Performing Asset (NNPA) ratio was 1.67%, showing a reduction of 28 basis points and 12 basis points, respectively, from the previous quarter. Credit costs continued their downward trend for the sixth consecutive quarter, standing at 4.01% in Q1FY27, a decrease from 4.30% in Q4FY26, with expectations of this trend continuing through FY2027. The company also saw its credit rating upgraded to INDA+ (Stable Outlook) by India Rating & Research in June 2026, which is anticipated to lower borrowing costs.
Return on Assets Under Management (RoAUM) was 4.2%, and Return on Equity (RoE) was 11.7%. The annualised Earnings Per Share (EPS) for the quarter was ₹12.08 on a Net Worth of ₹2,603 Crores. In a measure of prudence amidst geopolitical tensions and El Niño concerns, the company enhanced its Provision Coverage Ratio (PCR) by 14 basis points to 63.80% quarter-on-quarter.
On the business front, Assets Under Management (AUM) grew by 28% YoY to ₹7,324 Crores, driven by a 38% increase in new customer onboarding. Disbursements saw a 22% YoY growth, reaching ₹1,219 Crores, positioning the company on track for its annual growth target of 25-30%. Aye Finance added 44,736 new borrowers in Q1FY27, a 38% YoY improvement. The PAR for Bucket X was reported at 7.01% despite the quarter's seasonal softness.
Mr. Sanjay Sharma, Managing Director of Aye Finance Ltd, commented on the performance, stating, “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.”
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