Aye Finance Q1 FY27 Results (NSE: AYE)
Signal: Earnings grew
The read
Aye Finance delivered a strong quarter with PAT surging 143.5% YoY to ₹74.5 Cr, powered by NII expansion (+38.3% YoY) and lower provisions. Asset quality remains healthy (Gross Stage 3 4.49%, PCR 63.8%), and capital adequacy is robust (CRAR 42.4%). However, EPS growth lagged PAT due to IPO dilution, and cost-to-income inched up. The sequential profit dip from Q4 is typical seasonal variation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Net profit | ₹74.5 Cr | 143.5% | |
| EPS | ₹3.02 | 88.8% |
P&L walk
PAT growth of 143.5% YoY to ₹74.5 Cr was driven by 38.3% NII expansion and a 6.1% decline in provisions, while cost-to-income edged up 102 bps to 36.86%.
Key positives
- PAT grew 143.5% YoY to ₹74.5 Cr, the highest in recent quarters.
- Net Interest Income expanded 38.3% YoY to ₹322.06 Cr, driven by strong interest income growth and contained finance costs.
- Impairment on financial instruments declined 6.1% YoY, reflecting improving asset quality.
- Capital adequacy remains strong with CRAR of 42.38% and LCR of 269.61%.
Key concerns
- Cost-to-income ratio increased 102 bps YoY to 36.86%, as employee and other expenses grew faster than total income.
- EPS growth of 88.8% lagged PAT growth of 143.5% due to equity dilution from the IPO.
- Sequential PAT declined 13.3% from Q4FY26, though part of seasonal pattern.
Research and educational content only. Not investment advice.