Aye Finance Limited — Investor Meet, 13-03-2026: Analysts/Institutional Investor Meet/Con. Call Updates

Aye Finance Limited held its Q3 FY26 earnings conference call, discussing its business model focused on lending to unorganized micro-scale businesses and its financial performance.

**Financial Performance:**

* Disbursements grew 35% YoY to INR 1,310 Cr, adding 41,015 new borrowers.

* AUM increased 23.5% YoY and 5.5% QoQ.

* Total income was INR 449 Cr, up 21.3% YoY.

* NIMs remained strong at 14.21%, with cost of borrowing decreasing.

* PAT for Q3 was INR 43 Cr, an 87% YoY increase.

* Credit cost reduced to 4.67% of AUM.

**Management Commentary & Outlook:**

Management highlighted the robustness of their business model and customer segment, noting better credit resilience compared to consumption lending. They emphasized their unique lending approach to underserved micro-businesses, which form a significant employment engine. The company expects continued growth driven by increasing mortgage AUM and a reduction in credit costs.

**Operational Updates:**

* The mortgage loan portfolio reached 22% of the overall AUM.

* Technology and data science are key to optimizing operations from origination to collection.

* 60% of growth in December YoY came from increasing AUM per branch, not new branches.

* Repeat loans are a significant efficiency driver.

**Analyst Q&A Highlights:**

* Management targets a 30% mortgage AUM mix and 30% overall AUM CAGR over three years.

* Credit cost is expected to normalize to around 3.5% in the next financial year.

* The company anticipates improved profitability due to falling credit costs and operating leverage.

**Investor Angle:**

Management expressed confidence in their business model and growth trajectory, aiming for a 30% CAGR with controlled credit costs and operational expenses. The focus remains on building trust and delivering consistent performance.