Aye Finance posts 144% profit jump in Q1 FY27
AI Summary
Aye Finance Limited reported a remarkable 144% year-on-year increase in profit after tax to ₹75 crore for Q1 FY27, despite a sharp decline in share price by 6.30% to ₹177.22. The company also saw significant growth in total income and net interest income, alongside improved asset quality, which led to an upgrade in its long-term rating by India Ratings & Research. Management projects continued growth in assets under management and stable credit costs for the fiscal year.
Micro-enterprise lender Aye Finance Limited reported a 144 per cent year-on-year surge in profit after tax to ₹75 crore for the quarter ended June 30, 2026, up from ₹31 crore in the same period last year, the company announced.
Despite the strong earnings, shares of the NSE-listed company (AYE) fell sharply on the day, closing at ₹177.22, down 6.30 per cent from Tuesday’s close of ₹189.13, on heavy traded volumes of 60.40 lakh shares worth ₹109.60 crore.
JSW Energy Q1 profit falls 36% to ₹533 cr on higher depreciation, finance costs
Total income for the quarter rose 22 per cent year-on-year to ₹490 crore, while net interest income grew 38 per cent to ₹322 crore. Assets under management climbed 28 per cent year-on-year and 4 per cent sequentially to ₹7,324 crore. Disbursements for the quarter stood at ₹1,219 crore, up 22 per cent from the year-ago period, though they moderated sequentially — a pattern the company attributed to typical Q1 seasonality.
Asset quality continued to improve for the sixth straight quarter. Gross NPA stood at 4.49 per cent, down 28 basis points sequentially, while annualised credit costs eased to 4.01 per cent from 4.30 per cent in Q4FY26. Net interest margin improved 20 basis points quarter-on-quarter to 15.9 per cent.
During the quarter, India Ratings & Research upgraded Aye Finance’s long-term rating from IND A to IND A+ with a Stable Outlook, and its commercial paper rating to IND A1+.
The company operates 571 branches across 18 states serving approximately 6.7 lakh active micro-enterprise borrowers. For FY27, management has guided for AUM growth of 25–30 per cent, credit costs of 3.5–4.0 per cent, and return on assets of 4.0–4.5 per cent. The stock’s 52-week high of ₹197.29 was recorded just one day prior, on July 21.
Original Article
Published on Hindu BusinessLine