Aye Finance LimitedQ2 FY27 Results & Financial Update
Aye Finance Limited: Q2 FY27 standalone results and company financials – revenue ₹514.39 Cr, PAT ₹86.72 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Aye Finance Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Aye Finance delivered its highest-ever quarterly profit after tax of INR 86.70 crore for the quarter ended September 30, 2026, marking a 16.40% sequential increase from INR 74.50 crore in Q1 FY27.
Total revenue from operations reached INR 514.39 crore during Q2 FY27, compared to INR 477.37 crore in the preceding quarter, representing a top-line quarter-on-quarter growth of 7.75%.
Total income for the quarter stood at INR 527.12 crore, up from INR 489.66 crore in Q1 FY27, supported by interest income of INR 479.26 crore.
Profit before tax (PBT) expanded to INR 115.80 crore for the quarter, reflecting a 19.20% increase over the INR 97.15 crore reported in the June 2026 quarter.
Asset quality metrics improved alongside profitability, with gross non-performing assets (GNPA) and net non-performing assets (NNPA) moderating to 4.2% and 1.6% respectively as of September 30, 2026, compared to 4.5% and 1.7% in Q1 FY27.
Operating efficiency improved as the operating expense ratio declined to 8.6%, marking its lowest level in eight quarters, helped by disciplined cost scaling against business expansion.
01 · Business model
What does Aye Finance do?
Aye Finance Limited operates as a middle-layer non-banking financial company (NBFC-ML) in India, specializing in small-ticket business loans directed toward micro-scale micro, small, and medium enterprises (MSMEs).
The company provides working capital and business expansion loans secured against working assets or property hypothecation, serving customers across manufacturing, trading, service, and allied agriculture sectors.
Operating across 18 states and 3 union territories, Aye Finance deploys a cluster-based credit underwriting approach designed to assess the cash flows of underserved micro enterprises.
The institution derives its lending resources from institutional borrowings, leveraging capital raised through its initial public offering in February 2026.
02 · Historical context
What shaped the business before this quarter
The company completed its initial public offering in February 2026, expanding its net worth and providing capital to support ongoing leverage and portfolio growth through FY27.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Total income | ₹527.12 Cr | ₹489.66 Cr |
| Interest income | ₹479.26 Cr | ₹452.67 Cr |
| Other income | ₹12.73 Cr | ₹12.29 Cr |
| Provisions | ₹58.68 Cr | — |
| Profit before tax | ₹115.80 Cr | ₹97.15 Cr |
| Profit after tax | ₹86.72 Cr | ₹74.50 Cr |
| EPS | ₹3.51 | ₹3.00 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Interest income grew to INR 479.26 crore in Q2 FY27 from INR 452.67 crore in Q1 FY27, driven by expansion in the asset under management base.
Other income contributed INR 12.73 crore during the quarter, showing a modest rise from INR 12.29 crore in the previous quarter.
NIM, spread, funding cost and credit cost
Incremental cost of borrowing reduced to 10.04%, representing a 16 basis point reduction compared to Q1 FY27 and a 72 basis point decrease year-on-year.
The operating expense ratio improved to 8.6% in Q2 FY27, down from 8.9% in Q1 FY27 and 9.6% in Q2 FY26, reflecting operating leverage across the branch and customer network.
Net interest margin (NIM) stood at 15.6% for the quarter, representing a 34 basis point moderation compared to Q1 FY27 while remaining higher by 173 basis points year-on-year.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Assets under management (AUM) reached INR 7,597 crore as of September 30, 2026, registering a 26% year-on-year expansion and a 4% sequential rise over Q1 FY27.
Total loan disbursements for Q2 FY27 aggregated to INR 1,403 crore, representing a 10% year-on-year and 15% quarter-on-quarter increase.
Active customers rose to 6.94 lakh, up 18% year-on-year and 4% over the preceding quarter.
The company added 49,150 new borrowers during Q2 FY27, representing a 26% growth compared to 38,845 in Q2 FY26 and a 10% increase from 44,736 in Q1 FY27.
The average ticket size on disbursement stood at INR 0.17 million per micro enterprise borrower.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
The lending portfolio spans micro enterprises engaged in manufacturing, trading, services, and allied agriculture sectors across 18 states and 3 union territories.
Geography and market mix
Operations extend across 18 states and 3 union territories in India, targeting underserved micro-enterprise clusters.
07 · Reported developments
What changed operationally
Reported the highest-ever quarterly profit after tax of INR 86.70 crore for Q2 FY27, backed by operational scaling and credit cost moderation.
Credit cost declined for the seventh consecutive quarter to 3.8% in Q2 FY27, down from 5.0% in Q2 FY26 and 4.0% in Q1 FY27.
08 · Items worth noticing
The line items that can distort a quick read
Provisions for the quarter stood at INR 58.68 crore, reflecting ongoing provisioning policies applied against the loan portfolio.
09 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Net worth stood at INR 2,695 crore as of September 30, 2026, resulting in a book value per share of INR 110.
10 · Management guidance & targets
What management is targeting from here
Management stated that the company remains firmly on track to deliver its FY27 growth and earnings guidance while absorbing the expected effects of increased cost of borrowing.
11 · Beyond the numbers
What changed beyond the numbers
Reported update
Return on Metrics
Return on AUM (RoAUM) for the quarter reached 4.7%, compared to 2.4% in Q2 FY26 and 4.2% in Q1 FY27, while Return on Equity (RoE) improved to 13.1% from 8.1% in Q2 FY26 and 11.6% in Q1 FY27.
12 · Previous-quarter changes
What changed since the previous quarter
Disbursements accelerated by 15% sequentially to INR 1,403 crore in Q2 FY27 compared to Q1 FY27, lifting total AUM by 4% to INR 7,597 crore.
13 · Key Q&A
The quarter, answered directly
What does Aye Finance do?
Aye Finance Limited operates as a middle-layer non-banking financial company (NBFC-ML) in India, specializing in small-ticket business loans directed toward micro-scale micro, small, and medium enterprises (MSMEs).
What is the clearest takeaway from Q2 FY27?
Aye Finance delivered its highest-ever quarterly profit after tax of INR 86.70 crore for the quarter ended September 30, 2026, marking a 16.40% sequential increase from INR 74.50 crore in Q1 FY27.
What drove earnings or loan-book movement?
Interest income grew to INR 479.26 crore in Q2 FY27 from INR 452.67 crore in Q1 FY27, driven by expansion in the asset under management base.
What mattered most for margins, funding or credit cost?
Incremental cost of borrowing reduced to 10.04%, representing a 16 basis point reduction compared to Q1 FY27 and a 72 basis point decrease year-on-year.
What changed operationally beyond the headline numbers?
Return on AUM (RoAUM) for the quarter reached 4.7%, compared to 2.4% in Q2 FY26 and 4.2% in Q1 FY27, while Return on Equity (RoE) improved to 13.1% from 8.1% in Q2 FY26 and 11.6% in Q1 FY27.
What is management guiding or targeting from here?
Management stated that the company remains firmly on track to deliver its FY27 growth and earnings guidance while absorbing the expected effects of increased cost of borrowing.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Return on Equity Trajectory: Monitor the progression of Return on Equity (RoE) as the company increases leverage against capital raised in its February 2026 IPO.
- 02
Asset Quality and Credit Cost Stability: Track whether credit costs sustain their downward trajectory beyond the seventh consecutive quarterly decline of 3.8% alongside GNPA and NNPA ratios.
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