Aye Finance Reports Robust Financial Results, Achieving 16% Quarterly ROE

Aye Finance Reports Robust Financial Results, Achieving 16% Quarterly ROE​

Aye Finance, a leading technology-driven lender focused on the micro enterprise sector, today announced its audited financial results for the fiscal year ended March 31, 2026. The company reported an annual Profit After Tax (PAT) of INR 194 Crores and total revenue of INR 1,797 Crores. These results provide a comprehensive view of the company's performance since its successful listing on the Indian stock exchanges in February 2026.

Quarterly Highlights (Q4 FY26)​

For the fourth quarter of FY26, Aye Finance achieved an PAT increase of 110% Year-over-Year (YoY). The company also reported an Return on Equity (ROE) of 16% for the quarter, based on the enlarged net worth following the IPO infusion of INR 710 Crores in February 2026.

The company's Assets Under Management (AUM) demonstrated strong growth, increasing by 27% YoY to INR 7044 Crores. This growth was supported by a 25% YoY expansion in quarterly disbursements. In the quarter, 70,841 new borrowers were added.

Credit quality metrics showed consistent improvement. The Credit Cost stood at 4.3%, representing a reduction of 186 basis points (bps) YoY, marking the consistent reduction in each of the previous five quarters. Net Non-Performing Assets (NNPA) declined by 19 bps, and Gross Non-Performing Assets (GNPA) decreased by 17 bps, compared to the preceding quarter. The Return on Assets (ROA) for the quarter was 4.6%.

Full Year Performance (FY26)​

Reviewing the full fiscal year, the Annual PAT stood at INR 194 crores, marking a 13% YoY increase after factoring in the cost impact of new labor rules. The annual disbursement volume grew by 20%, bringing the total number of new borrowers added in the year to 2,06,833.

The company maintained a credit cost of 4.76% for the year. The Return on Assets (ROA) for FY26 was 2.8%, while the Return on Equity (ROE) was 9.3%.

For a comparative overview of the performance metrics:

Management Commentary​

Mr Sanjay Sharma, Managing Director of Aye Finance Ltd, commented on the company's resilience. He highlighted that in FY26, Aye Finance improved both profits and credit quality, standing out in an industry year marked by over-lending and market corrections. He noted that the quarter closed with an PAT of INR 86 Crores and an ROE of 16%.

Sharma also stated that the company has reduced its credit costs for five consecutive quarters and maintained a robust credit Provision Coverage Ratio (PCR) of 64%. He affirmed the focus on maintaining underwriting effectiveness within the micro-enterprise sector while prioritizing prudent risk management to ensure long term returns for all stakeholders.

About Aye Finance Ltd​

Aye Finance operates as a non-banking financial company (NBFC-ML) providing loans to micro-scale MSMEs across India. The company offers various business loans to meet working capital and business expansion needs. These loans are secured against hypothecation of working assets or property security across manufacturing, trading, service, and allied agriculture sectors.

Aye Finance is among the leading NBFCs providing business loans to the largely underserved micro-scale enterprises in India, operating across 18 states and 3 union territories. The company provides small-ticket hypothecation loans (average ticket INR 1.5 lakhs) and mortgage-based loans (average ticket INR 5 lakhs). Its expertise lies in utilizing customized data science approaches to underwrite business cash flows for various business clusters, which has enabled stable credit costs and profitable scaling.

AYE Stock Price Movement​

Shares of Aye Finance Limited are surging in live trading, jumping 7.01% to reach ₹144.33 as of 12:25 PM today. The equity is seeing significant momentum, trading on a volume of 1.87 million shares and pushing closer to its 52-week high of ₹149.69.