Aye Finance’s Q2 Profit Slumps 26% YoY To INR 34.5 Cr

SUMMARY

Aye Finance’s net profit for the second quarter (Q2) of FY26 declined almost 26% to INR 34.5 Cr from INR 46.9 Cr in the same quarter last year

The company's operating revenue for the period under review increased more than 22% YoY and 7% QoQ to INR 436.6 Cr

The company’s total expenditure increased 33% to INR 405.2 Cr in Q2 FY26 from INR 303.8 Cr in the year-ago period

IPO-bound NBFC Aye Finance’s net profit for the second quarter (Q2) of FY26 declined almost 26% to INR 34.5 Cr from INR 46.9 Cr in the same quarter last year. On a sequential basis, the NBFC’s net profit increased 12% from INR 30.9 Cr PAT reported in the June quarter.

Aye’s operating revenue for the period under review increased more than 22% YoY and 7% QoQ to INR 436.6 Cr. Including an other income of INR 10.3 Cr, Aye’s total income for the period stood at INR 446.9 Cr.

Interest income was the major contributor to Aye’s top line, raking in INR 372 Cr in the quarter under review. This income made up almost 85% of the total operating revenue of the company for the period under review.

Important to mention that Aye Finance is in the process of going public, having received the SEBI’s go-ahead for its DRHP in April this year. The company is yet to file its red herring prospectus (RHP).

As per its DRHP, Aye’s proposed IPO would comprise a fresh issue of equity shares worth up to INR 885 Cr and an offer for sale (OFS) of up to INR 565 Cr. Investors like LGT Capital, CapitalG, A91 Fund, MAJ Invest, Alpha Wave, among others, will offload their shares via the OFS.

The company plans to deploy the fresh issue proceeds from the IPO to meet its future capital requirements, arising out of the business and assets growth.

Founded in 2014 by Sanjay Sharma and Vikram Jetley, Aye Finance offers affordable business loans to microenterprises in the country. It uses cluster-based credit assessment with AI algorithms to assess risk in the absence of traditional business documents.

Aye Finance’s Q2 Profit Slumps 26% YoY To INR 34.5 Cr

A Closer Look At Aye Finance’s Expenses

The company’s total expenditure increased 33% to INR 405.2 Cr in Q2 FY26 from INR 303.8 Cr in the year-ago period.

Finance Cost: The cost under this head, which includes interest on borrowings increased 9% to INR 132.5 Cr in Q2 FY26 from INR 121.1 Cr in the previous period.

Employee Benefits Cost: The cost under this head jumped 32% to INR 121.2 Cr in Q2 FY26 from INR 91.5 Cr incurred during the same period last year.

Impairment Loss: The company’s loss on impairment of financial instruments jumped sharply by 63% to INR 86.2 Cr in the period under review from INR 52.8 Cr in Q2 FY25.