Disbursements
₹1,310 Cr
+35% YoY
Disbursements grew 35% year-on-year, driven by strong demand in the unorganized micro-enterprise segment.
AYEFINANCE
Financial Services
2026-02-??
Aye Finance Ltd — Q3 FY26
Aye Finance delivered a strong Q3 FY26 with PAT surging 87% YoY to ₹43 crore, driven by improving credit quality and operating leverage.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Aye Finance delivered a strong Q3 FY26 with PAT surging 87% YoY to ₹43 crore, driven by improving credit quality and operating leverage. Disbursements grew 35% YoY to ₹1,310 crore, while AUM expanded 23.5% YoY to ₹5,232 crore. Credit cost fell to 4.69% of AUM, the fourth consecutive quarterly decline, with collection efficiency on non-overdue loans at 99.3%. Management guided for 29-30% AUM growth in FY26 and a three-year vision of 30% CAGR, credit cost of 3.25-3.75%, and ROA of 4-4.5%. The mortgage book (21% of AUM) is scaling, and repeat loans (39% of growth) enhance efficiency. Key risk: elevated credit costs may normalize slower than expected if macroeconomic stress persists.
Key Numbers
AUM
₹5,232 Cr
+23.5% YoY
Assets under management grew 23.5% YoY, with 60% of growth from higher per-branch productivity.
Collection Efficiency (Non-OD)
99.3%
+0.1pp MoM
Collection efficiency on non-overdue loans improved to 99.3% in Dec, signaling strong asset quality.
Mortgage Portfolio Share
21%
+2pp YoY
Mortgage loans now constitute 21% of AUM, up from ~19% last year, with a target of 30% over 3 years.
Management Guidance
FY26 AUM growth of 29-30%
Management expects full-year AUM growth of 29-30%, driven by strong Q4 disbursement momentum.
Management guidance growthThree-year vision: 30% CAGR, credit cost 3.25-3.75%, ROA 4-4.5%
Over the next three years, the company targets consistent 30% AUM growth, credit cost between 3.25% and 3.75%, and ROA of 4-4.5%.
Management guidance growthQ4 FY26 annualized credit cost below 4%
Management expects quarterly annualized credit cost to fall below 4% in Q4 FY26, setting up for FY27.
Management guidance marginsMortgage portfolio to reach 30% of AUM over 3 years
The mortgage loan share is targeted to increase from current 21% to 30% of total AUM over the next three years.
Management guidance expansionKey Risks
Bihar regulatory risk from microfinance ordinance
A new Bihar ordinance on microfinance could impact collections, though management believes business loans are less affected and similar past state regulations had minimal impact.
medium · analyst_questionElevated credit cost normalization may be slower than expected
Credit cost at 4.69% remains above the target range of 3.25-3.75%; any delay in normalization could pressure profitability.
medium · data_observationMortgage team costs weighing on opex
The addition of 1,300-1,400 mortgage staff has increased operating expenses; profitability improvement depends on mortgage book scaling to absorb these costs.
medium · management_commentaryCompetition in mortgage lending may pressure yields
Increased supply in the mortgage segment could lead to pricing pressure, potentially offsetting benefits from lower credit costs.
low · analyst_questionNotable Quotes
Our performance in quarter three clearly demonstrates the robustness of our business model and indeed the robustness of our customer segment.
We are targeting to start the new financial year at a normal level of credit cost for a business segment.
We believe that the mortgage share of the overall portfolio should increase to about 30% which is the ideal mix.
Frequently Asked Questions
What was Aye Finance's revenue in Q3 FY26?
Aye Finance reported revenue of ₹449 Cr in Q3 FY26, representing a +21.3% change compared to the same quarter last year.
What guidance did Aye Finance management give for FY27?
FY26 AUM growth of 29-30%: Management expects full-year AUM growth of 29-30%, driven by strong Q4 disbursement momentum. Three-year vision: 30% CAGR, credit cost 3.25-3.75%, ROA 4-4.5%: Over the next three years, the company targets consistent 30% AUM growth, credit cost between 3.25% and 3.75%, and ROA of 4-4.5%. Q4 FY26 annualized credit cost below 4%: Management expects quarterly annualized credit cost to fall below 4% in Q4 FY26, setting up for FY27. Mortgage portfolio to reach 30% of AUM over 3 years: The mortgage loan share is targeted to increase from current 21% to 30% of total AUM over the next three years.
What are the key risks for Aye Finance in FY27?
Key risks include Bihar regulatory risk from microfinance ordinance — A new Bihar ordinance on microfinance could impact collections, though management believes business loans are less affected and similar past state regulations had minimal impact.; Elevated credit cost normalization may be slower than expected — Credit cost at 4.69% remains above the target range of 3.25-3.75%; any delay in normalization could pressure profitability.; Mortgage team costs weighing on opex — The addition of 1,300-1,400 mortgage staff has increased operating expenses; profitability improvement depends on mortgage book scaling to absorb these costs.; Competition in mortgage lending may pressure yields — Increased supply in the mortgage segment could lead to pricing pressure, potentially offsetting benefits from lower credit costs..
Did Aye Finance meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Aye Finance Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.