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Aye Finance Posts ₹193 Cr FY26 Profit, Revenue Up 23.8% Post-IPO
Aye Finance reported a standalone profit of ₹193.63 crores for the fiscal year ended March 31, 2026, with an annual Earnings Per Share (EPS) of ₹9.73. Total revenue for FY26 reached ₹1,863.24 crores, marking a 23.80% increase from ₹1,504.99 crores in the previous fiscal year. The company also posted a standalone profit of ₹85.91 crores for the fourth quarter (Q4) of FY26, with Q4 revenue climbing 29.79% year-on-year to ₹545.27 crores.
IPO Capital Boosts Equity, But Loan Stress Emerges
These strong financial results follow the company's successful listing on the NSE and BSE in February 2026, where it raised ₹672.24 crores from a fresh issue. This capital infusion has strengthened its equity base. However, Aye Finance has highlighted significant concerns regarding its loan portfolio. The company disclosed breaches of debt covenants tied to specific Non-Convertible Debenture (NCD) tranches, relating to Gross Non-Performing Asset (NPA) and 90-day overdue (PAR 90) ratios. These breaches affect NCDs with ISINs INE501X07570 and INE501X07588.
Write-offs Rise Amid Sector-Wide Delinquencies
Management acknowledged an increase in loan write-offs, attributing this to rising delinquencies and broader stress within the micro-business and Micro Finance Institution (MFI) lending segments. Aye Finance operates as a Non-Banking Financial Company (NBFC) focused on serving micro and small enterprises. The company's expanding balance sheet, with total assets reaching ₹7,772.94 crores and borrowings (excluding debt securities) climbing to ₹3,947.73 crores, necessitates careful asset-liability management. This growth phase also brings increased scrutiny concerning compliance with debt obligations.
Peer Comparison Highlights Specific Risks
Compared to sector peers like CreditAccess Grameen Ltd, Ujjivan Small Finance Bank, and Bandhan Bank, Aye Finance's revenue growth of 23.80% for FY26 appears robust. However, the disclosed covenant breaches and rising delinquencies are specific risk factors that investors will closely monitor against peer performance metrics, where Gross NPA ratios typically range between 3-7% for the sector.
Investors Monitor Asset Quality and Strategy
Investors will be keen to see how Aye Finance addresses these covenant breaches and rising delinquencies. Key areas to watch include management's strategy for improving asset quality, the trajectory of Gross NPA and PAR 90 ratios, the effective deployment of IPO proceeds for growth and risk mitigation, and recovery performance in its loan portfolios.