Aye Finance AUM jumps 27% to ₹7,044 crore in FY26; asset quality improves

Aye Finance Ltd. reported a strong operational performance for FY26, with assets under management (AUM) rising 27% year-on-year to ₹7,044 crore, driven by robust disbursements and improving asset quality.

In an exchange filing on Monday, April 6, the non-banking financial company (NBFC), which focuses on lending to micro-enterprises, said total disbursements for the year grew 20% to ₹5,169 crore.

Sequentially, disbursements increased 26% to ₹1,655 crore in the March quarter, and AUM grew 11% in Q4FY26 from ₹6,356 crore in the December quarter.

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The company also reported improvement in asset quality metrics. Gross non-performing assets (GNPA) declined to 4.77% in Q4FY26, while PAR X improved by 115 basis points between October 2025 and March 2026.

Managing Director of Aye Finance, Sanjay Sharma, said the company closed FY26 on a strong note, supported by growth in AUM and disbursements alongside improved asset quality.

"We will continue to use technology and data to reach more micro-enterprises and support their growth, while building a strong and sustainable business," he added.

The 1–90 days past due (DPD) ratio stood at 1.87%, reflecting better repayment behaviour.

Collection efficiency remained strong, with non-overdue collection efficiency at 99.5% in March 2026. Early-stage delinquencies also improved, with Bucket 1 collections (under 30 days overdue) rising to 62.5%, supported by steady monthly gains.

"Better collection efficiency and lower delinquencies show the strength
of our customers as well as our disciplined approach to lending and risk management," Sharma said.

Aye Finance said its geographically diversified portfolio, spread across 18 states and 3 union territories and over 70 business clusters, has helped maintain stability amid evolving market conditions.

Shares of the company were trading 0.66% down at ₹90.42 as of 12.11 pm following the business update. The stock has declined almost 22% in the last month, delivering a negative 30% return over the past year.