Aye Finance reported a robust financial performance for the quarter ended June 30, 2026 (Q1FY27), with net profit rising 144% year-on-year to ₹75 crore from ₹31 crore in the same period last year. The surge in profitability was driven by lower credit costs, which moderated to 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 healthy demand from both existing and new customers.

Financial Performance Highlights

The company's annualised earnings per share (EPS) for the quarter was ₹3.02. 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 to ₹1,219 crore, 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 Ratings & 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 secured board approval to raise up to ₹4,000 crore through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis. The capital raising initiative is intended to bolster the company's financial resources, with the issuance to be executed in one or more tranches over a period of one year following shareholder approval. This move is subject to the consent of shareholders at the ensuing Annual General Meeting, which is scheduled for September 1, 2026.

The Board of Directors approved the proposal during a meeting held on July 22, 2026. The decision aligns with the regulations outlined by the Securities and Exchange Board of India (SEBI) under the SEBI Listing Regulations and the relevant Master Circular. The funds will be mobilized via private placement, allowing the company to strategically time the issuances based on market conditions and requirements.

Key Details of the NCD Issuance

The specific terms for the debt instruments, including tenor, coupon rates, and security creation, will be determined by the Working Committee of the Board of Directors (WALCO) for each tranche. The table below outlines the broad parameters of the issuance as disclosed in the regulatory filing.

Shareholder Approval and AGM

The implementation of this fund-raising proposal is contingent upon approval from the shareholders. The 33rd Annual General Meeting (AGM) of Aye Finance Limited is slated to be held on Tuesday, September 1, 2026. The meeting will be conducted via Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The formal notice convening the AGM will be circulated to shareholders within the prescribed statutory timeline.

The board meeting, which commenced at 10:51 A.M. IST and concluded at 1:25 P.M. IST, also considered other routine matters. Gaurav Seth, Chief Financial Officer, signed the regulatory disclosure submitted to the exchanges.