Aye Finance Limited — Investor Meet, 30-07-2026: Analysts/Institutional Investor Meet/Con. Call Updates

Aye Finance Limited hosted an earnings conference call to discuss its Q1 FY27 business strategy and outlook. Management provided an overview of the operating market environment and the company's performance.

The company reported robust Q1 FY27 results, with disbursements growing 22% YoY to ₹1,219 Cr. Assets Under Management (AUM) reached ₹7,324 Cr, up 28% YoY. Customer acquisition was strong, adding over 44,000 new borrowers, bringing the active base to 6.7 lakhs. Asset quality showed improvement, with Gross NPAs at 4.49%. Credit cost declined to 4.01%, within the guided range. Net total income increased 38% YoY to ₹322 Cr, and Profit After Tax (PAT) surged 144% YoY to ₹75 Cr.

Management expressed optimism about future growth, driven by the under-penetrated micro-enterprise segment and Aye Finance's differentiated business model. Key priorities include responsible growth with underwriting discipline, targeting AUM growth of 25-30%, continued credit cost normalization, and increasing the share of mortgage loans. Investments in technology and analytics will continue. The company sees a significant long-term opportunity in the micro-enterprise lending space, with plans to potentially expand into affordable and gold loan segments.

Investor queries focused on credit cost guidance, portfolio yield across business verticals, reasons for decreased fee income, customer acquisition strategies despite tighter underwriting, the impact of mortgage mix on margins, long-term loss rates, the rationale behind maintaining a conservative credit cost guidance, and the company's strategy for direct assignments. The discussion also covered branch expansion plans, Opex trends, and the difference between hypothecation loans and merchant loans.

The overall sentiment was positive, with management expressing confidence in the company's ability to capture market opportunities and deliver sustainable growth.