Aye Finance reported a robust financial performance for the quarter ended June 30, 2026 (Q1FY27), with net profit rising 144% year-on-year to ₹74.5 crore from ₹30.6 crore in the same period last year. The surge in profitability was driven by lower credit costs, which stood at 4.01%, and stronger operating leverage. Assets under management (AUM) grew 28% YoY to ₹7,324 crore — tracking within the company's FY27 guidance range of 25-30% — supported by a 38% increase in new customer onboarding, signalling strong demand for credit across the micro-enterprise segment.

Financial Performance Highlights

The company's annualised earnings per share (EPS) for the quarter was ₹12.08. The return on assets under management (RoAUM) was recorded at 4.2%, while the return on equity (RoE) stood at 11.7%. Aye Finance's net worth was reported at ₹2,603 crore. Disbursement growth came in at 22% YoY, slightly below the targeted growth range of 25-30%. The following table summarizes the key financial metrics for Q1FY27:

Asset Quality and Capital Adequacy

Aye Finance reported an improvement in asset quality on a quarter-on-quarter basis. The Gross Non-Performing Assets (GNPA) ratio declined to 4.49% from the previous quarter, while the Net Non-Performing Assets (NNPA) ratio eased to 1.67%. The provision coverage ratio (PCR) was enhanced by 14 basis points to 63.80% as a measure of prudence. The company also noted a credit rating upgrade to IND A+ with a Stable Outlook from India Rating & Research in June 2026.

The table below captures the asset quality movement:

Management Commentary

Sanjay Sharma, Managing Director of Aye Finance, stated that the Q1FY27 performance reflects the robustness of the cluster-based underwriting model. He highlighted the 144% improvement in PAT and 28% growth in AUM YoY, alongside a 29 basis points reduction in credit costs. The improvement in asset quality alongside strong profitable growth demonstrates the management's philosophy of scaling up with good credit discipline.

Aye Finance has revised the proposed size of its Non-Convertible Debentures (NCD) issuance to ₹220 Crores via private placement. The company's Working Committee of Asset and Liabilities Committee (WALCO) is scheduled to meet on Thursday, July 23, 2026, to consider and approve the revised proposal. The debentures will be rated, senior, listed, secured, transferable, and redeemable.

The updated proposal includes a green shoe option of up to ₹20 Crores. This mechanism allows the company to retain oversubscription, effectively increasing the total issue size if demand warrants it. The funds raised through this debt instrument will contribute to the company's capital structure, though specific utilization plans were not disclosed in the corrigendum.

The meeting is being convened pursuant to Regulations 29 and 50 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These regulations mandate timely disclosure of material events and decisions made by the board or its committees to ensure transparency for shareholders and the market.

Key Details of the Proposed NCD Issuance

Aye Finance Limited has informed BSE Limited and the National Stock Exchange of India Limited regarding the revision. The intimation was signed by Gaurav Seth, Chief Financial Officer of the company.