Aye Finance Limited – Investor Presentation Summary

Key Operational Highlights

  • Disbursements increased 15% quarter-on-quarter to ₹1,403 crore in Q2 FY27
  • H1 FY27 disbursements reached ₹2,622 crore
  • Assets Under Management stood at ₹7,597 crore, registering growth of 26% YoY and 4% QoQ
  • Active borrower base reached 6.9 lakh customers, adding approximately 49,000 new borrowers in Q2 FY27
  • AUM per employee increased to ₹0.67 crore from ₹0.57 crore in Q2 FY26
  • Opex ratio declined to 8.61%, its lowest level in the last eight quarters
  • Disbursements were moderated in drought-affected regions of Maharashtra, Karnataka and Madhya Pradesh

Key drivers of operational performance: Disciplined and sustainable growth approach, calibrated lending in affected regions, improved productivity metrics

Financial Highlights

Revenue (Gross Total Income): ₹527 crore in Q2 FY27 (24% YoY growth, 8% QoQ growth)

EBITDA: Not explicitly specified in presentation

PAT: ₹87 crore in Q2 FY27 (151% YoY growth, 16% QoQ growth)

EPS: Basic EPS of ₹3.51 and Diluted EPS of ₹3.48 for Q2 FY27

Margins: Net Interest Margin stood at 15.6% in Q2 FY27

YoY/QoQ comparison: Q2 FY27 PAT increased 151% YoY and 16% QoQ; Gross Total Income grew 24% YoY and 8% QoQ

Drivers of financial performance: Higher revenue growth, improved operational efficiency, better asset quality

H1 FY27 Performance: Gross Total Income grew 23% YoY to ₹1,017 crore; Pre-Provision Operating Profit increased 47% YoY to ₹377 crore; PAT rose to ₹161 crore from ₹65 crore in H1 FY26 (148% growth)

Return Metrics: Return on Assets and Return on Equity for H1 FY27 stood at 3.90% and 12.34% respectively

Asset Quality Highlights

GNPA: 4.20% in Q2 FY27 (improvement of 29 bps sequentially)

PAR 30: 6.94% in Q2 FY27 (improvement of 7 bps QoQ and 109 bps from 8.03% in Q2 FY26)

Credit Cost: 3.82% for the quarter (within guided range of 3.5–4.0%)

Collection Efficiency: Non-OD collection efficiency at 99.2%; Bucket 1 collection efficiency at 52.8%

Provision Coverage: PCR as of 30th September 2026 is 62.42%

Stage 3 Loans: ₹299 crore gross outstanding with ₹186 crore ECL provision

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not explicitly specified in presentation

Balance Sheet Snapshot

Total Assets: ₹8,774 crore as of 30th September 2026

Loans: ₹6,850 crore as of 30th September 2026

Borrowings: ₹5,858 crore as of 30th September 2026

Total Equity: ₹2,695 crore as of 30th September 2026

Net Debt/Equity: Closing D/E is 2.17x

Leverage: 3.24x as of Q2 FY27

Capex & Cash Flow Health

Capital Expenditure: Not explicitly specified in presentation

Cash Position: Cash & Bank balance of ₹1,342 crore as of 30th September 2026

Strategic & R&D Initiatives

Technology Platform: Enhanced by Data Science & Visualization; 100% paperless loan origination; 100% in-house underwriting; 100% cashless disbursements; 96.21% customers activated on NACH; 86.16% collection through digital modes

Cluster-Based Lending: Proprietary underwriting methodology for 70+ unique clusters in Tier 2 & Tier 3 cities

Mortgage Business Expansion: Deployed 1,020 dedicated staff in "Primary ML Channel" in 180 branches between FY24 and FY26

Repeat Business Program: Machine Learning models to target quality customers; Tele-calling productivity of ₹1.56 Crores per month per Tele-caller in H1FY27

Industry Trends & Business Environment

Macro/Industry Trends: Deficient monsoon rainfall and localized drought conditions; steady business activity reflecting underlying economic strength; healthy loan demand and resilient asset quality through seasonally weaker September quarter; early signs of festive demand

Impact on Company: Moderated disbursements in drought-affected regions of Maharashtra, Karnataka and Madhya Pradesh; sustained credit demand from MSME sector

Management Commentary & Growth Outlook

Strategic Outlook: Focus on building on progress, sustaining improvements in productivity and asset quality, and delivering on FY27 guidance

FY27 Guidance: AUM 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%

Three Year Vision: Targeting 28%-33% AUM CAGR; Maintaining credit cost of 3.25%-3.75%; RoA of 4.0%-4.5% and RoE of 17.0%-20.0%; Opex between 7.0%-7.5%; Increasing mortgage loan shares and deepening AI/ML integration

Company Overview

Founded: 2014

Business: RBI-registered NBFC-ML focused on enabling credit access for underserved MSMEs across India

Customer Base: ~6.9 lakh active customers

Distribution: 500+ branches with phygital approach

Average Ticket Size: ₹1.7 Lakhs

Investors: Elevation Capital, Temasek Trust Asset Management, Google Capital, A91 Investments, British International Investment, Lightrock, Alpha Wave

CSR Activities

FAME (Foundation for Advancement of Micro Enterprises) programs: Healthcare & doorstep veterinary services; Milk collection & Dairy Input Aggregation Model; Partnership with HUL, AMUL & Mother Dairy; Women artisans programs; Q2 FY27 update: Extended partnership with HUL receiving additional ₹50 lakh donation; 111 milk collection centres for over 6,000 dairy farmers; ₹3 crore milk deposited in the quarter; 90 Dairy aggregation shops sold ₹50 lacs of dairy inputs