On a sequential basis, the NBFC’s PAT increased 25% from ₹34.5 Cr
Operating revenue for the period surged 23% YoY and 1% QoQ to ₹442.8 Cr
Total expenses increased 18% YoY to ₹401.1 Cr
Recently listed NBFC Aye Finance reported a 87% jump in its net profit for Q3 FY26 to ₹42.6 Cr from ₹22.8 Cr reported in the year-ago period, on the back of strong business growth and reduction in credit cost. Sequentially, profit increased 25% from ₹34.5 Cr.
Operating revenue for the period zoomed 23% YoY and 1% QoQ to ₹442.8 Cr. Interest income, the biggest component of its top line, increased 17% YoY to ₹393.4 Cr.
Including other income of ₹12.2 Cr, Aye Finance’s total income for the December quarter stood at ₹455 Cr. Meanwhile, total expenses increased 18% YoY to ₹401.1 Cr.
The NBFC, which focuses on micro-enterprises, saw its loan disbursements surge 35% YoY to ₹1,310 Cr. This led to a 24% rise in assets under management to ₹6,356 Cr. Aye Finance added 41,015 new borrowers during the quarter under review and increased its branch network 9% YoY to 571.
Meanwhile, its credit cost declined 10% to ₹83 Cr in Q3 FY26 from 86Cr in the preceding September quarter and ₹92 Cr in Q3 FY25. Net interest margin was largely stable, rising to 14.21% during the quarter from 13.96% in Q2 FY26.
However, gross non-performing assets ratio jumped 115 basis points (bps) YoY and 9 bps QoQ to 4.94%.
“Disbursals are accelerating, and we remain firmly on track to deliver the 29-30% AUM growth in FY26 and beyond. With asset quality improved to normalised levels, we have cleared the runway for a sharp, sustained uptick in profitability over the coming quarters. Our focus remains on sustaining this trajectory through disciplined underwriting and a customer-centric approach enabled by technology & data science,” Aye Finance MD Sanjay Sharma said.
Founded in 2014 by Sharma and Vikram Jetley, Aye Finance provides customised business loans to underserved MSMEs. The company targets borrowers in the MSME segment with a turnover in the range of ₹30 Lakh to ₹1 Cr per annum and an average income of ₹5-15 Lakh.
Aye Finance’s AUM is spread across three categories – mortgage-backed loans, secured hypothecation loans and unsecured hypothecation loans. Hypothecation loans, which are partly secured against business assets pledged by the borrower, accounted for 87.5% of its total AUM as of December 2025.
The company made its public markets debut last month after seeing a subpar interest in its IPO. The public issue, which comprised a fresh issue of ₹710 Cr and an offer-for-sale (OFS) component of ₹300 Cr, was subscribed 97%.
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