Aye Finance Q2 Results, October 21, 2026: Record ₹86.7 Crore Profit as Credit Costs Fall

Aye Finance Q2 results landed a little before noon on Wednesday, October 21, 2026, and the headline is simple: the small-business lender made ₹86.7 crore in the September quarter, its highest quarterly profit so far. That’s up 151% from ₹34.5 crore a year ago and 16% from ₹74.5 crore in the June quarter.

Aye Finance is a middle-layer NBFC that lends to micro enterprises: small manufacturers, traders, service businesses and allied agriculture units, a segment the company describes as largely underserved. It listed on NSE and BSE after its February 2026 IPO, so this is one of its early quarters as a listed company.

Aye Finance Q2 results: the profit and return numbers

All figures below come from the company’s press release filed with NSE for Q2 FY27.

• Profit after tax: ₹86.7 crore, up 151% year-on-year and 16% quarter-on-quarter.
• Return on AUM: 4.7%, against 2.4% in Q2 FY26 and 4.2% in Q1 FY27.
• Return on equity: 13.1%, against 8.1% a year ago and 11.6% last quarter.
• Net interest margin: 15.6%, up 173 basis points from a year ago but down 34 basis points from the June quarter.
• Net worth: ₹2,695 crore as of September 30, 2026, which works out to a book value of ₹110 per share.

The margin dip is the one number that moved the wrong way. The company’s incremental cost of borrowing, meaning the rate on its newest borrowings, fell to 10.04%, which is 72 basis points lower than a year ago and 16 basis points lower than last quarter. Even so, managing director Sanjay Sharma said in the release that the company expects to absorb the effects of a higher cost of borrowing while staying on track for its FY27 guidance.

Credit costs keep falling

For a lender to tiny businesses, bad loans decide everything. Here Aye had a decent quarter. Credit cost dropped to 3.8%, the seventh quarter in a row that it has fallen, from 5.0% a year ago and 4.0% in Q1 FY27. Gross NPA eased to 4.2% and net NPA to 1.6%, from 4.5% and 1.7% at the end of June.

Costs are coming down too. The operating expense ratio was 8.6%, compared with 9.6% a year ago and 8.9% last quarter. The company says that’s its lowest level in eight quarters.

How fast the loan book grew

• Assets under management: ₹7,597 crore, up 26% year-on-year and 4% quarter-on-quarter.
• Disbursements: ₹1,403 crore, up 10% year-on-year and 15% quarter-on-quarter.
• Active customers: 6.94 lakh, up 18% year-on-year.
• New borrowers: 49,150 in the quarter, against 38,845 a year ago and 44,736 in Q1 FY27.

The average ticket size on disbursement is ₹0.17 million, roughly ₹1.7 lakh, and the company operates across 18 states and 3 union territories.

What we take from it

One thing stands out to us. Profit grew 151% while AUM grew 26%, so most of the jump came from lower credit costs and tighter expenses rather than from lending a lot more. That’s a healthier mix than pure book growth, but it also means the next leg has to come from somewhere else. Sharma’s answer in the release is leverage: as the company borrows more against the equity it raised in the IPO, he expects return on equity to rise steadily over the coming quarters.

The things to track from here are whether credit cost keeps sliding, whether margins hold up as borrowing costs change, and whether disbursement growth picks up from 10%. If you’re new to reading lender results, our guide on how to analyse quarterly results walks through the main ratios. The company’s investor material is on Aye Finance’s website.

Source: Aye Finance press release and covering letter filed with NSE and BSE (October 21, 2026).

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.