MSME-focused lender Aye Finance’s net profit surged 111% to ₹85.9 Cr in Q4 FY26 from ₹40.7 Cr in the year-ago period. On a sequential basis, profit rose 102% from ₹42.6 Cr.

Operating revenue grew 29% YoY and 19% QoQ to ₹528.4 Cr. In this, interest income rose 26% YoY to ₹440.2 Cr and net gain on fair value changes surged 6X to ₹48 Cr. The company registered a gain of ₹20 Cr on derecognition of financial instruments, a decline of 42% YoY from the year-ago quarter. 

Including other income of ₹16.8 Cr, total income for the quarter stood at ₹545.3 Cr.

Meanwhile, total expenses increased 18% YoY to ₹434.4 Cr. The company said that the credit cost for the quarter reduced by 186 basis points (bps) YoY to 4.3% on the back of consistent reductions in each of the previous five quarters.  

For the full fiscal year FY26, the NBFC’s PAT increased 13% to ₹193.6 Cr from ₹171.3 Cr. Operating revenue for the fiscal jumped 24% YoY to ₹1,814.7 Cr. 

In a statement, the NBFC claimed that its AUM grew 27% YoY to ₹7,044 Cr. Besides, quarterly disbursements grew 25% YoY with the addition of 70,841 new borrowers during the quarter. 

“Alongside, we have reached collection efficiencies across our geographies, at levels that herald a good year ahead. Along with delivering top and bottom line growth, we continue to focus on maintaining the effectiveness of our underwriting of the micro enterprise sector and ensuring resilience in outcomes through the year,” Aye Finance MD Sanjay Sharma said.

Founded in 2014, Aye Finance provides business loans to micro-scale enterprises across 18 states and 3 union territories. It offers small-ticket hypothecation loans with an average ticket size of ₹1.5 Lakh and mortgage-based loans with an average ticket size of ₹5 Lakh for businesses. 

Shares of Aye Finance surged following the announcement of results and were trading 13.15% higher at ₹152.45 on the BSE at 14:20 IST.

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