Aye Finance Limited – Investor Presentation Summary

Key Operational Highlights

  • Disbursements for Q1FY27 stood at ₹1,219 Crore, with a growth of 22% year-on-year
  • Assets Under Management improved by 28% year-on-year and 4% quarter-on-quarter to ₹7,324 Crore
  • Serves ~6.7 lakh active customers through 500+ branches
  • Average ticket size of ₹1.7 Lakhs
  • 100% in-house origination model
  • Cluster-based underwriting methodology for 70+ unique clusters in Tier 2 & Tier 3 cities

Key drivers of operational performance: Healthy demand from both existing and new customers, continued focus on disciplined credit expansion, proprietary analytics and tech-driven credit assessment

Segment-wise Performance

Not Specified

Financial Highlights

Revenue: ₹490 Crore (Gross Total Income)

  • Interest Income: ₹453 Crore
  • Fee & Other Income: ₹37 Crore

EBITDA: Not explicitly specified

PAT: ₹75 Crore

EPS: Basic EPS ₹3.02, Diluted EPS ₹3.00

Margins:

  • Net Interest Margin on ATA: 15.94%
  • Operating Expense on ATA: 8.91%
  • PAT on ATA: 3.71%

YoY/QoQ comparison:

  • Total Income improved by 22% year-on-year to ₹490 Crore
  • PAT improved by 144% year-on-year to ₹75 Crore
  • PAT decreased 13% quarter-on-quarter from ₹86 Crore in Q4FY26

Drivers of financial performance: Reduction in average yield due to change in portfolio mix compensated by reduction in finance cost, improved credit environment leading to lower provisions

Comparison to market estimates: Not available

Key Risks: Not explicitly disclosed

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Closing D/E is 2.13x

Leverage (x): 3.15

Reserves: Not explicitly specified

Current Assets/Liabilities:

  • Cash & Bank balance: ₹1,351 Crore
  • Loans: ₹6,583 Crore
  • Investments: ₹196 Crore
  • Other financial assets: ₹94 Crore
  • Other non-financial assets: ₹167 Crore

Working Capital/Leverage Metrics: Total Assets ₹8,391 Crore, Total Equity ₹2,603 Crore

Financial Health Insights: Well positioned to increase the average tenor of assets, no ALM mismatch in cashflow in any tenor bucket

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not disclosed

Investment Rationale: Focus on serving micro-enterprise customers with competitive and sustainable credit solutions

Strategic & R&D Initiatives

Investments in Innovation: AI/ML at core for underwriting and collection models, technology platform enhanced by Data Science & Visualization, 100% paperless loan origination, 100% cashless disbursements

Expected impact on growth: Machine Learning models to target quality customers for repeat business

Strategic Rationale: Expanding access to formal credit for underserved MSMEs across India, deepening geographic reach with digital intelligence

Industry Trends & Business Environment

Macro/Industry Trends: India's micro-enterprises continue to demonstrate strong credit resilience, government-led financial inclusion initiatives, rapid digital adoption expanding access to formal credit

Impact on Company: Reinforcing the long-term structural opportunity in the micro-enterprise segment, Q1 is seasonally a weaker quarter characterized by lower business activity and softer credit demand

Management Commentary & Growth Outlook

Strategic Outlook: "India's micro-enterprises continue to demonstrate strong credit resilience, even as the broader macro environment remains uncertain. Government-led financial inclusion initiatives and rapid digital adoption are meaningfully expanding access to formal credit" - Sanjay Sharma, MD and Co-Founder

FY Guidance:

  • Assets Under Management Growth: 25.0% - 30.0%
  • Net Interest Margin: 14.25% - 14.75%
  • Opex Cost: 8.25% - 8.75%
  • Credit Cost: 3.5% - 4.0%
  • Return on Total Assets: 4.0% - 4.5%

Market Share Targets: Not available

Risks and Opportunities: Expect business momentum to further improve in Q2 FY27, supported by improving customer demand, stable collections, and a more favourable operating environment

Three Year Vision

  • Asset Quality: Maintaining industry-leading quality with normalized Credit Cost of 3.25% - 3.75%
  • Profitability: RoA of 4.0% - 4.5% and RoE of 17.0% - 20.0%
  • Growth Target: 28% - 33% AUM CAGR over next three years
  • Operational Efficiency: Maintaining Opex between 7.0% - 7.5% through branch maturation and digital automation
  • Increasing mortgage loan shares and deepening AI/ML integration in underwriting cycles

Rating Update

During Q1FY27, India Ratings & Research upgraded long-term rating from IND A to IND A+ with Stable Outlook, and commercial paper rating to IND A1+

CSR Activities

FAME (Foundation for Advancement of Micro Enterprises) programs:

  • 4L+ beneficiaries empowered since inception
  • Singapore-based trust grant secured to expand women-focused livelihood program
  • Dairy initiatives with Amul & Mother Dairy achieved 8 lakh litres milk collection
  • Women livelihood programs generated ₹48 lakh income in Q1FY27
  • Cumulative impact of ₹3 crore income opportunities created