Aye Finance Limited announced its Q2 FY27 financial results, showcasing robust performance with Assets Under Management (AUM) growing by 26% year-on-year to INR7,597 crores. The company reported a significant increase in profit after tax, which more than doubled, driven by a 23% rise in gross total income and a decrease in credit costs to 3.82%. The operating expense ratio also declined to 8.6%.
Aye Finance Reports Strong Q2 FY27 Performance
Aye Finance Limited has released its financial results for the second quarter of Fiscal Year 2027 (Q2 FY27), highlighting a period of steady and encouraging progress. The company’s Assets Under Management (AUM) saw a substantial year-on-year increase of 26%, reaching INR7,597 crores. This growth positions Aye Finance well within its full-year guidance of 25% to 30%.
Key Financial Highlights
Gross total income for Q2 FY27 grew by 23% year-on-year to INR527 crores. The credit cost continued its downward trend, decreasing to 3.82%, marking the seventh consecutive quarterly improvement and falling within the guided range of 3.5% to 4%. The operating expense ratio also saw a reduction, declining to 8.6%, a 32 basis points improvement from the previous quarter. These operational efficiencies contributed to a more than doubling of the profit after tax for the quarter.
Operational Efficiency and Asset Quality
The company demonstrated strong improvements in operational efficiency, with AUM per employee increasing by nearly 18% year-on-year. Asset quality also improved, with Gross Non-Performing Assets (GNPA) declining for the seventh consecutive quarter to 4.20% as of September 2026. The PAR X ratio stood at 6.94%, reflecting progress in portfolio quality. The company is targeting a PAR X below 6.5% by the end of the fiscal year.
Funding and Outlook
Aye Finance maintains a strong capital adequacy of 41%, with sufficient capital to support growth for the next two years without needing fresh equity. The cost of borrowing has eased, with the incremental cost declining to 10.04% and the blended cost to 10.63%. The company remains on track to achieve its FY27 guidance across key metrics, including AUM growth, credit cost, net interest margin, and operating expenses.
Future Plans
Looking ahead, Aye Finance aims to build on its momentum in the seasonally stronger second half of the year. The company is exploring new product offerings, including gold loans, and plans to expand its branch network. The focus remains on strengthening its lending franchise, achieving a 28% to 33% AUM growth CAGR, and a return on assets of 4% to 4.5% over the next three years.
Source: BSE
