Aye Finance Q3FY26 Results: PAT Surges 87% to ₹43 Cr, AUM Grows 23.5% YoY

Aye Finance Limited announced its unaudited financial results for Q3FY26 ended December 31, 2025, showcasing exceptional growth across key performance metrics. The leading NBFC specializing in micro-enterprise lending demonstrated strong momentum following its recent successful IPO, with robust year-over-year expansion driven by deep penetration into India's underserved MSME segment. Strong Financial Performance The company delivered impressive profitability growth with Profit After Tax surging 87.1% year-over-year to ₹42.60 crore from ₹22.77 crore in Q3FY25. This strong performance resulted in Return on Assets of 2.40% and Return on Equity of 9.74%, reflecting enhanced operational efficiency and strategic execution. Financial Metric: Q3FY26 Q3FY25 Growth (%) Profit After Tax: ₹42.60 crore ₹22.77 crore 87.10% Total Income: ₹454.95 crore ₹370.47 crore 22.80% Revenue from Operations: ₹442.78 crore ₹360.99 crore 22.60% Interest Income: ₹393.44 crore ₹337.06 crore 16.70% Business Growth and Expansion Aye Finance demonstrated strong business momentum with Assets Under Management growing 23.5% year-over-year to ₹6,356 crore from ₹5,145 crore. Disbursements showed robust growth of 35% YoY, increasing to ₹1,310 crore from ₹973 crore, indicating strong market demand and effective business execution. Business Metric: Q3FY26 Q3FY25 Growth (%) AUM: ₹6,356 crore ₹5,145 crore 23.50% Disbursements: ₹1,310 crore ₹973 crore 35.00% New Borrowers Added: 41,015 - - Branch Network: 571 523 9.00% Asset Quality and Credit Management The company maintained disciplined credit management with Gross NPA at 4.94% and Net NPA at 1.98%. Notably, Aye Finance achieved four consecutive quarters of credit cost reduction, with credit cost standing at 4.67% in Q3FY26, demonstrating improved underwriting standards and risk management capabilities. Nine-Month Performance and Regulatory Updates For the nine months ended December 31, 2025, total income increased 21.30% year-over-year to ₹1,317.97 crore, with Profit After Tax reaching ₹107.72 crore. The Board of Directors approved these results at their meeting held on March 6, 2026, with the trading window remaining closed until March 8, 2026. The company's equity shares were listed on NSE and BSE on February 16, 2026, following its successful IPO of 78,294,571 equity shares at ₹129 per share, raising net proceeds of ₹672.24 crore from the fresh issue. The company maintains strong credit ratings of A (Stable) from both ICRA and India Ratings, reflecting its robust financial position and operational capabilities in serving India's micro-enterprise segment across 18 states and 3 union territories. Source: None/Company/INE501X01029/9d45029d-e35d-46d2-a25f-5eb477ee1102.pdf Aye Finance Limited has successfully completed a pilot program that leverages Generative AI technology for image-based underwriting of trading businesses, marking a significant advancement in micro-enterprise lending. The innovation targets the underserved micro-scale MSME segment in tier 2 and beyond cities, addressing traditional barriers to formal credit access. Technology Innovation and Implementation The cutting-edge solution, developed in-house, represents a breakthrough in financial technology application. The system utilizes advanced technological components to transform unstructured data into actionable financial insights: Technology Component: Application Generative AI Models: Sales estimation from store images Machine Learning Models: Predictive analysis and data processing Multimodal Large Language Model: Integration of visual and financial data Proprietary ML Models: Monthly sales estimation for specific store types The system specifically targets garment stores and grocery stores, using store images as primary input to generate reliable monthly sales estimates. This approach significantly reduces the "cost-to-serve" for the micro-enterprise segment while maintaining high levels of accuracy and consistency. Company Background and AI Journey Aye Finance's technological advancement builds on a strong foundation of innovation and investment. The company achieved a notable milestone as the first NBFC to receive equity investment from Google Capital in 2018. Subsequently, it established its Data Science and Artificial Intelligence Unit in 2019, successfully deploying multiple customized ML models across key processes throughout the customer lifecycle. This systematic approach to technology integration has enabled the optimization of unit economics while facilitating the inclusion of a larger population of grassroots businesses in the formal credit ecosystem. Operational Impact and Benefits The newly developed system addresses critical challenges in the micro-enterprise lending sector. By transforming store images into financial insights, the solution provides several operational advantages: Standardization: Reduces reliance on subjective individual judgment Speed: Enables unprecedented application processing speed Consistency: Ensures uniform underwriting standards across applications Scalability: Opens possibilities for extension to other sectors beyond trading The system is built on Aye Finance's extensive internal datasets and has undergone rigorous testing for consistency, ensuring reliability in real-world applications. Leadership Perspective and Market Context "Our leadership in lending to the underserved segment of micro MSMEs has been rooted in superior operational efficiency," said Mr Sanjay Sharma, Managing Director, Aye Finance Ltd. "This GenAI integration builds on our established efficiency. By automating income estimation through Generative AI, we will substantially reduce manual fieldwork with an accelerated, data-driven system that increases both the speed and the reliability of our credit decisions." The innovation addresses a fundamental challenge facing 60 million micro-entrepreneurs in India's Tier 2 cities and beyond, where the lack of formal accounting records and "paper trails" has traditionally created barriers to credit access. As a Middle-Layer Non-Banking Financial Company (NBFC-ML), Aye Finance has been successfully addressing these credit challenges since 2014, offering tailored working capital and expansion loans typically secured against working assets or property. Recent Financial Developments The company recently strengthened its financial position through a successful Initial Public Offering, raising INR 1,010 crores. This capital infusion further enhances the company's ability to expand its technology-driven lending solutions and reach a broader segment of underserved micro-enterprises across India's growing tier 2 and beyond markets. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. 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