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Listed NBFC Aye Finance's net profit for the September quarter surged 151% to ₹86.7 Cr from ₹34.5 Cr in the year-ago quarter. On a sequential basis, profit increased 16% from ₹74.5 Cr. Operating revenue grew 18% YoY and 8% QoQ to ₹514.4 Cr, led by a 29% YoY increase in interest income to ₹479.3 Cr. Fees and commission income rose 13% YoY to ₹20.5 Cr. The NBFC also recorded a ₹10.1 Cr gain on derecognition of financial instruments measured at amortised cost and ₹4.5 Cr in net gains from fair value changes. Including other income of ₹12.7 Cr, total income rose 18% YoY to ₹527.1 Cr. Meanwhile, total expenses increased just 2% YoY to ₹411.3 Cr. The company recorded no net loss on fair value changes under expenses, compared with ₹18.7 Cr in the year-ago quarter. Impairment expenses on financial instruments declined 5% YoY to ₹81.9 Cr. Tax expenses increased 306% YoY to ₹29.1 Cr. Loan Book Expands 26% On the operational front, Aye Finance’s assets under management (AUM) rose 26% YoY and 4% QoQ to ₹7,597 Cr. Loan disbursements increased 10% YoY and 15% QoQ to ₹1,403 Cr. Its active customer base expanded 18% YoY to 6.94 Lakh, with the lender adding 49,150 new borrowers during the quarter. The expansion was accompanied by an improvement in asset quality. Its gross non-performing assets ratio declined to 4.2% from 4.5% in the June quarter, while the net ratio eased to 1.6% from 1.7%. Credit costs fell to 3.8% from 5% a year earlier and 4% in the preceding quarter. Its operating expense ratio declined 100 basis points YoY to 8.6%, the lowest in eight quarters. “We remain firmly on track to deliver our FY27 growth and earnings guidance while absorbing the expected effects of increased cost of borrowing,” MD Sanjay Sharma said. He added that the company expects its return on equity to rise over subsequent quarters as it increases leverage against the capital raised through its IPO in February this year. Aye Finance provides working capital and business expansion loans to micro-enterprises across manufacturing, trading, services, and allied agriculture sectors. Shares of Aye Finance ended today’s trading session 2.2% lower at ₹139.95 on the BSE.
document fetched 2026-10-22 03:02 · canonical https://inc42.com/buzz/aye-finance-q2-profit-surges-151-yoy-to-%e2%82%b987-cr-revenue-crosses-%e2%82%b9500-cr-mark