Aye Finance Reports Moderate Growth in Q1 FY26
Microlending platform Aye Finance is experiencing moderate growth in the first quarter of the fiscal year 2026 (Q1 FY26). During this period, the firm’s revenue saw an increase of 21%, while profits encountered a decline of 50%.
According to the company’s unaudited financial statements available on their website, Aye Finance’s revenue from operations climbed 21.5% to Rs 407 crore in Q1 FY26, a rise from Rs 335 crore in Q1 FY25. On a quarter-on-quarter comparison, Aye Finance’s operating revenue remained steady at Rs 407 crore in Q1 FY26, compared to Rs 409 crore in Q4 FY25.
A significant portion of Aye Finance’s revenue originated from interest income, which made up 89% of their overall income. This segment grew 16% to Rs 361 crore in Q1 FY26. The remainder of the revenue was sourced from gains on fair value and commissions. Additionally, the company reported Rs 9 crore from non-operational sources, bringing Aye Finance’s total revenue to Rs 416 crore for the first quarter.
In terms of expenses, finance costs constituted the largest portion for Aye Finance, representing 33% of total expenditures. This particular expense experienced a year-on-year increase of 17%, rising to Rs 126 crore in Q1 FY26 from Rs 108 crore in Q1 FY25. Employee benefits escalated by 40% to Rs 115 crore in Q1 FY26, up from Rs 82 crore in Q1 FY25.
Overall, Aye Finance’s total costs surged by 39% to Rs 375 crore in Q1 FY26, compared to Rs 269 crore in Q1 FY25. Due to the increase in expenses outpacing revenue growth, profits decreased by 50% to Rs 30.5 crore in Q1 FY26, down from Rs 61 crore in Q1 FY25. Nonetheless, the company reported a positive EBITDA of Rs 172 crore.
Aye Finance has also secured final approval from the market regulator for its public listing, following the submission of its Draft Red Herring Prospectus (DRHP) in December. The upcoming IPO will feature a fresh issue of equity shares valued at Rs 885 crore, along with an offer-for-sale (OFS) amounting to Rs 565 crore. Participating investors are expected to include LGT Capital, CapitalG LP, A91 Emerging Fund I LLP, and Alpha Wave Ventures.
