Aye Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Aye Finance Ltd filed with BSE on 06 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Aye Finance reported Q4 FY26 assets under management of Rs 7,044 crores, up 6% sequentially and 27% year-on-year, with quarterly profit of Rs 86 crores, up 110% year-on-year. Collection efficiency and asset quality metrics improved through the quarter, with PAR 1 plus at 6.9%, GNPA at 4.77%, and credit costs declining to 4.3%. Management outlined guidance for FY27 including AUM growth of 25% to 30%, credit costs of 3.5% to 4%, an operating expense ratio of 8.25% to 8.75%, and a return on assets target of 4% to 4.5%.
Numbers mentioned
Assets under management: Rs 7,044 crores (Q4 FY26)
p. 4
“Our assets under management stood at INR7,044 crores, reflecting a sequential 6% growth quarter-on-quarter and an annual growth of 27%.”
Sanjay Sharma, page 4 of the filed PDF · View the filing
Disbursements: Rs 1,655 crores (Q4 FY26)
p. 4
“disbursements for quarter 4 grew at 26% sequentially to INR1,655 crores of disbursement in the quarter”
Sanjay Sharma, page 4 of the filed PDF · View the filing
Full year disbursements: Rs 5,169 crores (FY26)
p. 4
“For the full year, our disbursements stood at INR5,169 crores, reflecting a growth of 20% over the last year.”
Sanjay Sharma, page 4 of the filed PDF · View the filing
Profit: Rs 86 crores (Q4 FY26)
p. 4
“The main marker, profit for the quarter, stood at INR86 crores, recording a 110% year-on-year growth and a 100% growth quarter-on-quarter.”
Sanjay Sharma, page 4 of the filed PDF · View the filing
Net interest margin: 16.4% (Q4 FY26)
p. 4
“The net margins for the quarter stood at 16.4%, showing improvement despite an increasing share of mortgage loans in our portfolio mix.”
Sanjay Sharma, page 4 of the filed PDF · View the filing
Cost of borrowings: 10.87% (Q4 FY26)
p. 4
“During the quarter 4, our overall cost of borrowings moderated to 10.87%, whereas our incremental borrowing in quarter 4 were even lower at 10.13%.”
Sanjay Sharma, page 4 of the filed PDF · View the filing
Non-OD collection efficiency: 99.5% (March 2026)
p. 5
“Our non-OD collection efficiency, has improved from 99.1% in October '25 consistently to 99.5% in March '26.”
Sanjay Sharma, page 5 of the filed PDF · View the filing
PAR 1 plus: 6.9% (Q4 FY26)
p. 5
“Our PAR X or PAR 1 plus, whatever you want to call it, stood at 6.9%, improving from 7.6% in quarter 3 of FY26.”
Sanjay Sharma, page 5 of the filed PDF · View the filing
Credit costs: 4.3% (Q4 FY26)
p. 5
“Credit costs also reduced to 4.3% in quarter 4 compared to 4.67% in previous quarter, which is a 37 basis points reduction quarter-on-quarter.”
Sanjay Sharma, page 5 of the filed PDF · View the filing
GNPA: 4.77% (March 2026)
p. 5
“The GNPA for March '26 stood at 4.77% and it has declined by 17 basis points from 4.94% in the previous quarter.”
Sanjay Sharma, page 5 of the filed PDF · View the filing
Full year profit: Rs 194 crores (FY26)
p. 5
“our overall profitability improved significantly with profit growing by 13% to INR194 Crores in FY26, supported by reduction in credit costs and improving credit or asset quality”
Sanjay Sharma, page 5 of the filed PDF · View the filing
Total income: Rs 1,796 crores (FY26)
p. 5
“Our total income stood at INR1,796 crores with a year-on-year growth of 20%, and net interest margin for FY26 stood at 14.67%.”
Sanjay Sharma, page 5 of the filed PDF · View the filing
Mortgage loan share of portfolio: 23% (FY26)
p. 5
“Our mortgage loans now comprise 23% of our portfolio as compared to 12% in FY24, two years back.”
Sanjay Sharma, page 5 of the filed PDF · View the filing
Capital adequacy ratio: 42.2% (Q4 FY26)
p. 6
“the proceeds from our IPO have meaningfully strengthened our capital adequacy to 42.2%, providing a solid foundation to support our future growth”
Sanjay Sharma, page 6 of the filed PDF · View the filing
Quarterly ROE: 16% (Q4 FY26)
p. 7
“We have exited Quarter 4 of FY26 with a quarterly ROE of 16% and a quarterly ROA of 4.6%.”
Sanjay Sharma, page 7 of the filed PDF · View the filing
Provision coverage ratio: 64% (Q4 FY26)
p. 7
“we also are carrying a robust provisional coverage reserve or PCR of 64%”
Sanjay Sharma, page 7 of the filed PDF · View the filing
Mortgage PAR 90: 2.7% (Q4 FY26)
p. 15
“the PAR 90 for the mortgage today is about 2.7% of the total portfolio”
Sovan Satyaprakash, page 15 of the filed PDF · View the filing
Borrowings due for repayment: Rs 2,400 crores (next 12 months)
p. 16
“over the next 12 months, we are seeing a repayment of close to INR2,400 crores”
Gaurav Seth, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM growth — 25% to 30% · FY27
stated firmly by Sanjay Sharma
p. 7
“Our expectation is that for the guidance would be that for FY26, we will target a growth in the range of 25% to 30%.”
Sanjay Sharma, page 7 of the filed PDF · View the filing
Credit cost — 3.5% to 4% · FY27
stated conditionally by Sanjay Sharma
p. 7
“we expect to be guided in our workings on a 3.5% to 4% credit cost, supported by better portfolio quality and sustained collection efficiencies”
Sanjay Sharma, page 7 of the filed PDF · View the filing
Operating expense ratio — 8.25% to 8.75% · FY27
stated firmly by Sanjay Sharma
p. 7
“In FY27, we'll focus on sweating these assets to build productivity and bring operating expense ratio to the range of 8.25% to 8.75%.”
Sanjay Sharma, page 7 of the filed PDF · View the filing
Return on assets — 4% to 4.5% · FY27
stated firmly by Sanjay Sharma
p. 7
“these factors give us confidence that we should be able to target a ROA of 4% to 4.5% and deliver sustainable and responsible growth while continuing to strengthen our core business fundamentals”
Sanjay Sharma, page 7 of the filed PDF · View the filing
Cost of borrowing — 25 to 35 basis points reduction · FY27
stated conditionally by Sanjay Sharma
p. 6
“The net effect that we believe could be an upside of about 25 to 35 basis points in our borrowing costs, which mean that we do expect a borrowing cost to reduce by 25 to 35 basis points compared to FY27.”
Sanjay Sharma, page 6 of the filed PDF · View the filing
Mortgage loan share of portfolio — 30% to 35% · next two to three years
stated as an aspiration by Sanjay Sharma
p. 8
“we will continue to move the mortgage loan book up and today we are at 23%, we want to see it grow in the next let's say two to three years to about 30% to 35%”
Sanjay Sharma, page 8 of the filed PDF · View the filing
Three-year credit cost range — 3.25% to 3.75% · three-year forward guidance
stated as an aspiration by Sanjay Sharma
p. 9
“in the three-year forward guidance, we have given a number where we expect the asset quality to be in the 3.25% to 3.75% range”
Sanjay Sharma, page 9 of the filed PDF · View the filing
PAR X — 5.5% to 6.00% · FY27
stated conditionally by Sovan Satyaprakash
p. 15
“we during the complete year I think we want to bring down the PAR X to below 6%. So from the current 6.9% or so, we want to be in the 5.5% to about 6.00% or so.”
Sovan Satyaprakash, page 15 of the filed PDF · View the filing
Mortgage PAR 90 target — 2% to 2.5%
stated as an aspiration by Sovan Satyaprakash
p. 15
“Mortgage book, I think between 2% to 2.5% is what we would be targeting the mortgage PAR 90 levels.”
Sovan Satyaprakash, page 15 of the filed PDF · View the filing
Stage 3 provision coverage ratio — above 60% · next financial year
stated firmly by Sovan Satyaprakash
p. 13
“we intend to keep it above 60% in the next financial year also”
Sovan Satyaprakash, page 13 of the filed PDF · View the filing
Leverage — 4x to 4.5x
stated as an aspiration by Sanjay Sharma
p. 16
“we do see a leverage at the range of 4x to 4.5x is a range that we would like to operate at”
Sanjay Sharma, page 16 of the filed PDF · View the filing
New product launch — at least one new product · this year
stated firmly by Sanjay Sharma
p. 8
“we will this year focus on at least one product launch”
Sanjay Sharma, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said mortgage mix dilutes yield but this is offset by lower borrowing costs, and equity has already contributed to the jump from Q3 to Q4 NIM.
Answered by Gaurav Seth
Asked by Adarsh: Why is NIM guided flat despite equity raise and falling cost of funds?
p. 10
“Now if you see that from 14.2% in Quarter 3, we went up to 16.4% in Quarter 4 NIM.”
Gaurav Seth, page 10 of the filed PDF · View the filing
Management said April collection run rates are similar to Q4 with no worsening seen so far.
Answered by Sanjay Sharma
Asked by Adarsh: Are April collection trends different from Q4?
p. 11
“Adarsh, on April, our run rates of collection are not very different from what we have seen in the fourth quarter period.”
Sanjay Sharma, page 11 of the filed PDF · View the filing
Management said manpower growth will normalize to about 10% versus higher growth previously, supporting the lower opex ratio target.
Answered by Sovan Satyaprakash
Asked by Adarsh: How will opex growth compare with AUM growth to hit the FY27 opex guidance?
p. 12
“about 15% overall opex growth should be able to deliver the 25% to 30% total AUM growth that we are expecting”
Sovan Satyaprakash, page 12 of the filed PDF · View the filing
Management explained that while underwriting tightening and collection efficiency improved quickly, the NPA pool built up earlier during the crisis is still working through, delaying the credit cost decline.
Answered by Sovan Satyaprakash
Asked by Shalin: Why has credit cost improvement lagged collection efficiency improvement?
p. 12
“right now there is a bulge up with respect to the NPA portfolio, NPA pool that we have”
Sovan Satyaprakash, page 12 of the filed PDF · View the filing
Management attributed the gain to mutual fund income and a cross-currency swap impact, and said they plan to reclassify this to OCI from FY27.
Answered by Gaurav Seth
Asked by Shalin: What is driving the increase in non-interest income from fair value gains?
p. 14
“there was a there was a cross-currency swap impact that has been baked into the P&L”
Gaurav Seth, page 14 of the filed PDF · View the filing
Management said profits are typically skewed toward H2, and that PAR X should decline from 6.9% to the 5.5%-6% range over the year.
Answered by Sovan Satyaprakash
Asked by Ananga Rana: How will PAT be distributed across quarters in FY27, and what improvement is needed in PAR X and PAR 30 to hit credit cost guidance?
p. 14
“a typical skewness of the profits are in the first half we deliver 35% to 40% of the profit value and about 60% to 65% of the profits come in H2”
Sovan Satyaprakash, page 14 of the filed PDF · View the filing
Management said mortgage PAR 90 is about 2.7% of the portfolio, though PAR X has improved due to better collection efficiency.
Answered by Sovan Satyaprakash
Asked by Rudraksh Raheja: What are the current GNPAs in the mortgage segment?
p. 15
“the PAR 90 for the mortgage today is about 2.7% of the total portfolio”
Sovan Satyaprakash, page 15 of the filed PDF · View the filing
Management said about Rs 2,400 crores of relatively expensive borrowings are due for repayment over the next 12 months, at an average rate close to 11%.
Answered by Gaurav Seth
Asked by Ravi Mehta: What is the borrowing maturity profile for upcoming renewals?
p. 16
“so on an overall average basis, this is closer to 11%, 10.95% to be very precise”
Gaurav Seth, page 16 of the filed PDF · View the filing
Management clarified the coverage is under CGFMU rather than CGTMSE due to interest rate capping considerations, with about Rs 500 crores currently covered.
Answered by Sovan Satyaprakash
Asked by Prithviraj Patil: Is any portfolio covered under CGTMSE, and does it apply to hypothecation loans?
p. 17
“we have roughly around INR500 crores which is parked under CGFMU, not CGTMSE”
Sovan Satyaprakash, page 17 of the filed PDF · View the filing
Risks flagged
Elevated credit costs and tighter liquidity conditions during the first half of FY26
p. 4
“The first half of the year was marked by tighter liquidity conditions, elevated credit costs across the sector, and macro headwinds on small businesses.”
Sanjay Sharma, page 4 of the filed PDF · View the filing
Possible hardening of market interest rates increasing borrowing costs
p. 6
“The third big component is the hardening of interest rates in the market, which can bring the cost of borrowing or the rate of interest up.”
Sanjay Sharma, page 6 of the filed PDF · View the filing
NPA pool built up from earlier crisis period still weighing on credit costs
p. 12
“the early part of this entire crisis played where the slippages had happened from all the buckets, so right now there is a bulge up with respect to the NPA portfolio, NPA pool that we have”
Sovan Satyaprakash, page 12 of the filed PDF · View the filing
Geopolitical situation in West Asia and trade barriers as a factor being monitored
p. 7
“we believe that with the effect of looming war and heightened trade barriers, our customer segment of tiny-scale micro-enterprises is expected to continue to hold good business margins and continue to supply to their local markets without too much of disruption”
Sanjay Sharma, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.