Aye Finance reported a 151.2% year on year rise in net profit to Rs 86.72 Cr in the September quarter of FY27, supported by higher interest income, lower impairment costs and improved operating efficiency.
The listed non banking financial company (NBFC), which lends to India’s micro enterprises, recorded revenue from operations of Rs 514.39 Cr in Q2 FY27, up 18.3% from Rs 434.89 Cr in the year-ago quarter. Net profit also increased 16.4% sequentially from Rs 74.50 Cr in Q1 FY27.
For the six months ended September 30, 2026, Aye Finance’s profit after tax (PAT) rose 147.6% to Rs 161.22 Cr from Rs 65.12 Cr in the corresponding period last year. Total income for the half year reached Rs 1,016.78 Cr.
The results point to stronger earnings at a time when lenders focused on small businesses must balance loan growth with borrowing costs and credit risk.
Interest Income and Assets Under Management Grow
Aye Finance’s interest income increased 29% year on year to Rs 479.26 Cr in Q2 FY27, compared with Rs 371.39 Cr a year earlier. Profit before tax rose to Rs 115.80 Cr from Rs 41.69 Cr.
The lender’s assets under management (AUM) reached Rs 7,597 Cr, up 26% year on year and 4% sequentially. Disbursements rose 10% year on year to Rs 1,403 Cr, while its active customer base grew 18% to 6.94 lakh.
The company added 49,150 new borrowers during the quarter, a 26% increase from the 38,845 added in Q2 FY26. These figures indicate that the earnings improvement came alongside continued expansion of its lending business.
Credit Costs Fall for the Seventh Consecutive Quarter
Aye Finance reported a credit cost ratio of 3.8% in Q2 FY27, down from 5% a year earlier and 4% in the previous quarter. Its operating expense ratio improved to 8.6%, compared with 9.6% in Q2 FY26, which the company described as its lowest level in eight quarters.
Net interest margin (NIM) stood at 15.6%, up 173 basis points year on year, though down 34 basis points sequentially. Return on equity improved to 13.1% from 8.1% a year earlier.
Gross non performing assets (GNPA) stood at 4.2%, while net non-performing assets (NNPA) were 1.6% at the end of September, compared with 4.5% and 1.7%, respectively, in the previous quarter.
These trends suggest improving credit and cost metrics alongside earnings growth. However, asset quality will remain important as the lender expands its loan book among small businesses, where borrower cash flows can be sensitive to changes in economic conditions.
Founder Sanjay Sharma Says Business Remains on Track
Sanjay Sharma, founder and managing director of Aye Finance, said the lender had recorded its highest-ever quarterly profit and remained on track to meet its FY27 growth and earnings guidance. He also said the company expects return on equity to improve over the coming quarters as it deploys the capital raised through its February 2026 IPO.
Aye Finance was established to provide formal credit to micro and small businesses that may not have easy access to traditional bank loans. Its latest results highlight the opportunity in this segment, while showing that sustained growth will depend on keeping borrowing costs, credit losses and operating expenses under control.
