Aye Finance Q2 FY27 Results (NSE: AYE)
Signal: Earnings grew
The read
The earnings inflection remains provision-led rather than margin-led: PAT rose 151.2% YoY to ₹86.72 crore as derived NII grew 40.1% and impairment fell 5.0% to ₹81.90 crore, but negative H1 operating cash flow of ₹112.35 crore and EPS growth lagging PAT growth remain the key quality checks.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹527.12 Cr | +18.4% | +7.7% |
| Net profit | ₹86.72 Cr | +151.2% | |
| EPS | ₹3.51 | +95.0% | |
| EBIT margin | 0% |
P&L walk
Total income rose 18.4% YoY to ₹527.12 crore and 7.7% QoQ, while derived NII increased 40.1% YoY to ₹334.58 crore; PAT reached ₹86.72 crore, up 151.2% YoY, helped by lower impairment of ₹81.90 crore and a moderate 9.2% rise in finance cost.
Key positives
- Total income reached ₹527.12 crore, up 18.4% YoY and 7.7% QoQ, while interest income increased 29.0% YoY to ₹479.26 crore.
- Derived NII increased 40.1% YoY to ₹334.58 crore as finance cost rose only 9.2% to ₹144.68 crore.
- Impairment on financial instruments declined 5.0% YoY to ₹81.90 crore, supporting PAT growth to ₹86.72 crore from ₹34.53 crore.
- Employee costs increased 13.5% YoY to ₹135.74 crore, slower than the 18.4% increase in total income.
- The company utilised the full ₹672.24 crore net fresh-issue proceeds for augmenting its capital base by September 30, 2026.
Key concerns
- H1 operating cash flow remained negative at ₹112.35 crore despite H1 PAT of ₹161.22 crore, with ₹746.94 crore absorbed by the loan portfolio.
- EPS rose 95.0% YoY to ₹3.51, materially below the 151.2% PAT growth, indicating dilution effects.
- Net debt increased by ₹510.10 crore from March 31, 2026 to ₹4,516.66 crore as loans rose to ₹6,849.85 crore.
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