Aye Finance Q1 FY27: Growth holds, credit trends improve

AUM was INR 7,324 crore (28% YoY), disbursements were INR 1,219 crore (22% YoY), and total income was INR 490 crore (22% YoY).

PAT was INR 75 crore versus INR 31 crore in Q1 FY26, a 144% YoY increase, supported by higher NII and lower credit cost versus last year.

AUM split was 76.7% hypothecation loans, 21.8% LAP, and 1.5% Saral property loans as of 30 June 2026.

FY27 guidance includes AUM growth of 25% to 30% YoY, NIM of 14.25% to 14.75%, opex cost of 8.25% to 8.75%, credit cost of 3.5% to 4.0%, and RoA on total assets of 4.0% to 4.5%.

GNPA was 4.49%, NNPA was 1.7%, PAR X was 7.01%, PAR 30 was 6.07%, and annualized credit cost was 4.01% for Q1 FY27.

Funding is diversified across banks, financial institutions and development financial institutions. Cost of borrowing was 10.78% in Q1 FY27 (10.87% in Q4 FY26) and India Ratings upgraded the long-term rating to IND A+ (Stable).

Management attributed the decline mainly to no direct assignment deal in the quarter (about INR 20 crore contribution in Q4 FY26) and moving foreign exchange movements into OCI, together impacting fee and other income by about INR 32 to 33 crore.