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Aye Finance Ltd (NSE: AYE, BSE: 544699), India’s leading technology-driven NBFC specialising in micro-enterprise lending, today announced its unaudited financial results for the first quarter of the fiscal year 2026-27. Aye reported robust year-on-year (YoY) growth across its key performance indicators, reinforcing its position as one of India's fastest-scaling micro-enterprise lenders.

Financial Highlights Q1FY27

* Profit After Tax (PAT) grew 144% YoY from INR 30.6 Crore to INR 74.5 Crores, reflecting the compounding benefits of scale and tighter risk discipline

* GNPA was 4.49%, and NNPA was 1.67%, down 28bps and 12bps, respectively, from the previous quarter, indicating a healthier portfolio

* Six quarters of continuous reduction in Credit Cost, which stood at 4.01% in Q1FY27, down from 4.30% in Q4FY26. We expect this trend to continue through FY2027

* Credit Rating upgrade to INDA + (Stable Outlook) from India Rating & Research in June 2026, which will help bring down the cost of borrowing

* RoAUM (Return on AUM) was at 4.2%, while RoE was at 11.7% due to the full impact of the primary raise through the IPO in Q4

* On a Net Worth of INR 2,603 crores, the annualised EPS in the quarter was Rs. 12.08

* In light of the geopolitical tensions and El Niño concerns, as abundant prudence we have enhanced our PCR by 14bps to 63.80% QoQ

Business Highlights Q1FY27

* 28% YoY Growth in AUM from INR 5,721 Crores to INR 7,324 Crores. This was driven by a 38% increase in new customer onboarding, signalling strong demand for credit across our target segment

* 22% YoY Growth in Disbursement from INR 1,001 Crores to INR 1,219 Crores, keeping us on track for our targeted growth of 25-30% for the year

* 44,736 new borrowers added in Q1FY27, a 38% YoY improvement

* PAR for Bucket X was 7.01% despite the typical effects of a seasonally softer quarter

Management Commentary

Commenting on the performance, Mr Sanjay Sharma, Managing Director, Aye Finance Ltd, said, “Our Q1 FY27 performance reflects the robustness of our cluster-based underwriting model in serving India's micro-enterprise segment.  We delivered 144% improvement in PAT and 28% growth in AUM YoY, with a 29bps reduction in our credit costs. The improvement in asset quality alongside strong profitable growth demonstrates the management’s philosophy of scaling up with good credit discipline”

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