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View Claim Ledger →Aye Finance Ltd — Q4 FY26
Aye Finance delivered a strong Q4 FY26, with AUM reaching ₹7,044 crore (up 27% YoY) and disbursements of ₹1,655 crore (up 26% QoQ).
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Aye Finance delivered a strong Q4 FY26, with AUM reaching ₹7,044 crore (up 27% YoY) and disbursements of ₹1,655 crore (up 26% QoQ). PAT grew 110% YoY to ₹86 crore, driven by improving asset quality and lower credit costs. The net interest margin expanded to 16.4% as cost of borrowings moderated to 10.87%. Management guided for FY27 AUM growth of 25-30%, credit cost of 3.5-4%, and operating expense ratio of 8.25-8.75%. The mortgage loan mix increased to 23% of portfolio, with a target of 30-35% over 2-3 years. Key risk: any sharp rise in interest rates could pressure NIMs despite the priority sector lending buffer.
Promises0 met · 2 missedRisks3 trackedTranscriptfull text
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0 delivered, 0 close, 2 missed.
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Risk Intelligence
Interest rate hardening could pressure NIMs
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Read Transcript →Quarter Snapshot
AUM
₹7,044 Cr
+27% YoY
Assets under management grew 27% year-on-year, driven by strong disbursement momentum.
Disbursements (Q4)
₹1,655 Cr
+26% QoQ
Quarterly disbursements rose 26% sequentially, reflecting sustained demand from micro-enterprises.
Collection Efficiency (non-OD)
99.5%
+40bps vs Oct'25
Collection efficiency improved from 99.1% in October 2025 to 99.5% in March 2026.
GNPA
4.77%
-17bps QoQ
Gross NPA declined 17 basis points sequentially to 4.77%, reflecting improving asset quality.
What Changed vs Last Quarter
NEW
AUM growth of 25-30% in FY27
Management expects assets under management to grow 25-30% in the current financial year.
NEW
Credit cost guidance of 3.5-4% for FY27
Credit cost is expected to normalize to 3.5-4% in FY27, supported by better portfolio quality.
NEW
Operating expense ratio target of 8.25-8.75% in FY27
Operating expense ratio is expected to decline from 9.6% to 8.25-8.75% by leveraging existing capacity.
NEW
ROA target of 4-4.5% in FY27
Return on assets is expected to be in the range of 4-4.5% for the current financial year.
DROPPED
FY26 AUM growth of 29-30%
Management expects full-year AUM growth of 29-30%, driven by strong Q4 disbursement momentum.
DROPPED
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%.
DROPPED
Q4 FY26 annualized credit cost below 4%
Management expects quarterly annualized credit cost to fall below 4% in Q4 FY26, setting up for FY27.
DROPPED
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.
NEW RISK
Interest rate hardening could pressure NIMs
Rising interest rates may increase borrowing costs, partially offsetting benefits from lower-cost debt replacement.
NEW RISK
Geopolitical risks from West Asia could impact micro-enterprises
Escalation in West Asia may disrupt local businesses, though management believes their customer segment is insulated.
RISK GONE
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.
RISK GONE
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.
RISK GONE
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.
Fast read
Guidance and risk preview
Management expects assets under management to grow 25-30% in the current financial year.
Rising interest rates may increase borrowing costs, partially offsetting benefits from lower-cost debt replacement.
View Risks →