Aye Finance Limited Reports 27% AUM Growth and Improved Asset Quality in FY26
Aye Finance Limited reported strong FY26 performance with 27% AUM growth to ₹7,044 crore and 20% disbursement growth to ₹5,169 crore. The company achieved significant asset quality improvements with PAR X declining 115 bps to 6.88% and collection efficiency reaching record levels of 99.5% for Non-OD category. The diversified portfolio across 18 states and 3 UTs demonstrated resilience against regional stress factors.
*this image is generated using AI for illustrative purposes only.
Aye Finance Limited has delivered robust business performance in FY26, demonstrating strong growth momentum coupled with enhanced asset quality metrics. The company submitted its business update for the quarter and year ended March 31, 2026, under SEBI regulations, highlighting significant improvements across key operational parameters.
Strong Portfolio Growth Performance
The company achieved substantial growth in its loan portfolio during FY26, with key metrics showing consistent improvement across quarters.
| Metric | FY26 | FY25 | Annual Growth | Q4FY26 | Q3FY26 | QoQ Growth |
|---|---|---|---|---|---|---|
| AUM (₹ Cr) | 7,044 | 5,534 | 27% | 7,044 | 6,356 | 11% |
| Disbursement (₹ Cr) | 5,169 | 4,291 | 20% | 1,655 | 1,310 | 26% |
The Assets Under Management grew from ₹5,534 crore in FY25 to ₹7,044 crore in FY26, representing a 27% annual increase. Quarterly performance remained strong with 11% quarter-on-quarter growth in Q4FY26. Disbursements showed consistent momentum with 20% annual growth and an impressive 26% quarter-on-quarter increase in Q4FY26.
Significant Asset Quality Improvement
Aye Finance demonstrated marked improvement in asset quality metrics throughout FY26, with consistent month-over-month enhancement across all key indicators.
| Parameter | Oct 25 | Nov 25 | Dec 25 | Jan 26 | Feb 26 | Mar 26 |
|---|---|---|---|---|---|---|
| PAR X | 8.03% | 7.93% | 7.64% | 7.49% | 7.25% | 6.88% |
| 1-90 DPD (₹ Cr) | 175 | 165 | 157 | 148 | 143 | 132 |
| 1-90 DPD (%) | 2.87% | 2.65% | 2.48% | 2.27% | 2.12% | 1.87% |
| GNPA | - | - | 4.94% | - | - | 4.77% |
The PAR X metric, representing total overdue across all DPD buckets, reduced by 115 basis points from 8.03% in October 2025 to 6.88% in March 2026. The 1-90 DPD category showed improvement both in absolute terms, declining from ₹175 crore to ₹132 crore, and as a percentage, dropping to 1.87% by March 2026. GNPA reduced by 17 basis points to 4.77% in Q4FY26.
Enhanced Collection Efficiency
Collection efficiency metrics reached record levels during FY26, supporting the overall improvement in asset quality. The company maintained consistent month-over-month improvement across collection parameters.
| Collection Metric | Oct 25 | Nov 25 | Dec 25 | Jan 26 | Feb 26 | Mar 26 |
|---|---|---|---|---|---|---|
| Non-OD CE% | 99.1% | 99.2% | 99.3% | 99.3% | 99.4% | 99.5% |
| Bucket 1 CE% | 51.8% | 55.0% | 58.0% | 57.1% | 59.8% | 62.5% |
March 2026 collection efficiency registered the highest levels for FY26, reaching 99.5% for Non-OD and 62.5% for Bucket 1 categories. Bucket 1 refers to overdue cases below 30 DPD, showing significant improvement throughout the year.
Regional Performance Stability
The company's top three states, contributing 43% of AUM, demonstrated consistent collection efficiency improvements. Bihar, Uttar Pradesh, and Rajasthan all achieved collection efficiency levels above 99.5% by March 2026, with Rajasthan leading at 99.7%. This regional stability supports the company's diversified portfolio strategy across 18 states and 3 union territories.
Management Outlook
According to management commentary, the company's diversified portfolio across 70+ business clusters has remained insulated from recent market challenges. The DPD (1-90) level of 1.87% as of March 31, 2026, reflects improving market conditions for fresh loans in the company's business segment. Management noted that the well-diversified geographical presence has minimized the impact of regional stress factors on the overall portfolio performance during FY26.
Historical Stock Returns for Aye Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.62% | -18.66% | -23.54% | -29.39% | -29.39% | -29.39% |
How will Aye Finance sustain its 27% AUM growth rate amid potential economic headwinds and increasing competition in the MSME lending space?
What impact could RBI's evolving regulatory framework for NBFCs have on Aye Finance's operational model and profitability targets for FY27?
Will the company's expansion strategy focus on deepening penetration in existing 18 states or exploring new geographical markets to maintain growth momentum?
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