Aye Finance Limited Earnings Summary — Q1 FY2027
Aye Finance Reports Explosive 144% YoY Profit Growth in Q1 FY2027
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 7.3% sequentially in Q1 FY2027.
- Revenue of ₹477 Cr is 17.7% higher year-on-year.
- Revenue has compounded at 20.5% annualised over the last 10 quarters.
- Net profit of ₹75 Cr is 143.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 120.4% annualised across the period.
- Operating margin stands at 46.4% in Q1 FY2027.
- Operating margin expanded by 619 bps year-on-year.
- PBT margin is 20.4%.
- Expense growth of 5.5% remained below revenue growth of 17.7%.
- Operating profit of ₹222 Cr is 35.9% higher year-on-year.
- Operating leverage continues to improve.
- 3 of the last 3 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 78/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2019 | Q1 FY2019 | Q4 FY2018 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 477 | 515 | 443 | 437 | 405 | 409 | 361 | — | — | — |
| Expenses | Stable | 256 | 279 | 253 | 266 | 242 | 240 | 219 | — | — | — |
| Operating Profit | Improving | 222 | 237 | 189 | 170 | 163 | 169 | 142 | — | — | — |
| Operating Margin | Stable | 46.4% | 45.9% | 42.8% | 39.0% | 40.2% | 41.4% | 39.4% | — | — | — |
| Other Income | Improving | 12 | 17 | 12 | 10 | 9 | 11 | 9 | — | — | — |
| Interest | Stable | 131 | 135 | 141 | 133 | 126 | 123 | 115 | — | — | — |
| Depreciation | Stable | 6 | 8 | 7 | 6 | 5 | 6 | 6 | — | — | — |
| Profit Before Tax | Accelerating | 97 | 111 | 54 | 42 | 41 | 50 | 30 | — | — | — |
| Tax | Accelerating | 23 | 25 | 11 | 7 | 10 | 10 | 8 | — | — | — |
| Net Profit | Improving | 75 | 86 | 43 | 35 | 31 | 41 | 23 | — | — | — |
| Net Margin | Accelerating | 15.6% | 16.7% | 9.6% | 7.9% | 7.5% | 9.9% | 6.3% | — | — | — |
Key Takeaways
- Net profit saw a massive year-on-year surge of 144% to ₹74.50 crore, supported by a healthy capital base post-IPO.
- Total Income reached ₹489.66 crore for the quarter, primarily driven by interest income of ₹452.67 crore.
- Gross Stage III ratio stood at 4.49% while Net Stage III remained controlled at 1.67%, reflecting stable asset quality.
- The Company maintains a strong Capital to Risk-Weighted Assets Ratio (CRAR) of 42.38%, significantly above regulatory requirements.
- A breach was noted in a specific debt covenant related to write-offs due to industry-wide stress in Micro Business and MFI loans, though a waiver was obtained.
- Operating leverage is beginning to manifest as employee benefit expenses were ₹138.64 crore against a total income of nearly ₹490 crore.
- Provision coverage ratio for Stage III assets is robust at 63.80%.
- Company completed full utilization of the IPO fresh issue proceeds (₹672.24 Cr) for augmenting its capital base.
Management Guidance
Management is focused on the 'missing middle' of Indian finance, utilizing a cluster-based underwriting model to manage risks in the informal micro-enterprise segment and drive expansion in under-served regions.
Sentiment Shift
Improving
The massive YoY profit jump and successful post-IPO capital deployment indicate strong execution, though qoq profit pressure and sectoral stress in MFI/Micro-business loans warrant monitoring.
Outlook
The outlook remains positive as the company leverages its strong capital position (42.38% CRAR) to scale AUM, despite external industry-wide headwinds in the micro-lending sector.
From the Annual Report (Key Quotes)
“Increase in write offs in this Financial year due to higher delinquencies, industry wide stress in Micro Business Loans and MFI Loans.”
“Aye Finance is a high-growth NBFC specializing in the micro-scale MSME segment in India with a unique data-led 'cluster-based' lending approach.”
“The Company has received net proceeds of Rs. 672.24 Crores from the fresh issue [utilised for] augmenting our capital base.”
Official Quarterly Documents
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This summary is AI-generated from Aye Finance Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.