Aye Finance Limited — Investor Meet, 06-05-2026: Analysts/Institutional Investor Meet/Con. Call Updates

Aye Finance Limited held an earnings conference call to discuss its business strategy and outlook. The call covered the company's financial performance, product mix evolution, technology innovations, liability management, and the broader market environment. Management provided guidance for FY27, focusing on growth, credit costs, and operational efficiency.

The company reported strong Q4 FY26 performance with Assets Under Management (AUM) at INR7,044 Cr, up 27% YoY. Disbursements grew 26% sequentially to INR1,655 Cr in Q4. Profit for the quarter was INR86 Cr, up 110% YoY. Net interest margins (NIMs) were stable at 16.4% due to a favorable borrowing cost. Asset quality improved with non-OD collection efficiency at 99.5% and GNPA at 4.77%, down 17 bps QoQ. For the full year FY26, profit grew 13% to INR194 Cr.

Management highlighted a strategic shift towards mortgage loans, now comprising 23% of the portfolio, aiming for enhanced stability. Technology adoption, including a generative AI tool for underwriting, was emphasized. The IPO strengthened capital adequacy to 42.2%. Borrowing costs are expected to moderate. The company expects FY27 growth of 25-30% with credit costs normalizing to 3.5-4%. Operational efficiency is targeted through an improved operating expense ratio of 8.25-8.75%.

The discussion also touched on potential new product launches, including gold loans and solar-based lending. Management expressed confidence in navigating the market environment, with micro-MSMEs showing steady recovery and insulation from broader geopolitical issues. The tone was cautiously optimistic about future performance and growth.