Financial Performance Summary

Profitability Metrics:

  • Profit After Tax (PAT) grew 144% YoY from ₹30.6 crore to ₹74.5 crore
  • Annualized EPS for the quarter was ₹12.08 based on Net Worth of ₹2,603 crore
  • Return on AUM (RoAUM) stood at 4.2%
  • Return on Equity (RoE) was at 11.7%

Asset Quality Indicators:

  • Gross NPA (GNPA) was 4.49%, down 28 bps from previous quarter
  • Net NPA (NNPA) was 1.67%, down 12 bps from previous quarter
  • Credit Cost stood at 4.01% in Q1FY27, down from 4.30% in Q4FY26
  • Provision Coverage Ratio (PCR) enhanced by 14 bps QoQ to 63.80%
  • PAR for Bucket X was 7.01%

Business Growth Metrics:

  • Assets Under Management (AUM) grew 28% YoY from ₹5,721 crore to ₹7,324 crore
  • Disbursements grew 22% YoY from ₹1,001 crore to ₹1,219 crore
  • 44,736 new borrowers added in Q1FY27, representing 38% YoY improvement
  • Average Ticket Size (ATS) on disbursement is ₹0.17 million

Strategic Developments

Credit Rating Update:

  • Received credit rating upgrade to INDA + with Stable Outlook from India Rating & Research in June 2026
  • This upgrade is expected to help bring down the cost of borrowing

Growth Outlook:

  • Management maintains targeted growth of 25-30% for the year
  • Expects the trend of continuous reduction in credit costs to continue through FY2027
  • Company has demonstrated six quarters of continuous reduction in credit costs

Management Commentary

Mr. Sanjay Sharma, Managing Director, commented: "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."

Company Profile

Aye Finance is a non-banking financial company – middle layer (NBFC-ML) focused on providing loans to micro-scale MSMEs across India. The company offers:

  • Business loans for working capital and business expansion needs
  • Loans against hypothecation of working assets or against security of property
  • Services customers across manufacturing, trading, service and allied agriculture sectors
  • Operates across 18 states and 3 union territories in India
  • Uses cluster-based underwriting model for business cash flows

Prudence Measures

In light of geopolitical tensions and El Niño concerns, the company has enhanced its PCR by 14 bps QoQ to 63.80% as an abundant prudence measure.

#Tags: #AyeFinance #FinancialResults #NBFC #MicroenterpriseLending #CreditQuality