Archive · 24 Jul 2026
Aye Finance Q1-FY27 Shows Strong Growth
Aye Finance had a great first quarter in FY27, with profits growing by 144% compared to the same period last year.
This growth was driven by better interest margins and improved asset quality.
The company is expected to grow its assets and earnings significantly over the next two years.
Management is also looking into new products like gold loans to diversify their business.
Despite some risks, the company is optimistic about its future and has set a target price of ₹220, which is higher than its current market price.
Aye Finance's Q1-FY27 PAT grew 144% y-o-y, driven by NIM expansion and improving asset quality.
The company expects AUM and EPS to grow at 28% and 41% CAGR respectively over FY26-28.
Management is exploring new product opportunities like gold loans and affordable home loans.
Aye Finance added 44,000 new borrowers this quarter, maintaining underwriting discipline.
The company is trading at FY28 PB/PE of 1.2/8.9x, similar to MFI peers despite a more secured book and superior asset quality.
- Who
- Aye Finance
- What
- Q1-FY27 financial results and growth outlook
- When
- Published on July 24, 2026
- Where
- India
- Why
- To provide insights into Aye Finance's financial performance and future growth prospects
Optimistic Outlook
Cautious Outlook
Growth Potential
Optimistic Outlook
Aye Finance is expected to see significant AUM and EPS growth over FY26-28, driven by NIM expansion, operating leverage, and cost of funds tailwinds.
Cautious Outlook
Despite strong Q1 results, past performance shows only 6% PAT CAGR over FY24-26, indicating potential risks in meeting aggressive growth targets.
Product Diversification
Optimistic Outlook
Management is exploring new product opportunities like gold loans and affordable home loans, which could diversify revenue streams.
Cautious Outlook
New product initiatives are long-term strategies and may not contribute significantly to short-term growth.
- Q1-FY27 PAT Growth
- 144% y-o-y
- AUM CAGR (FY26-28)
- 28%
- EPS CAGR (FY26-28)
- 41%
- New Borrowers Added
- 44,000 (+38% y-o-y)
- Target Price
- ₹220
- Current Market Price
- ₹171.80
- FY28 PB/PE
- 1.6x/11.5x
- ROA/ROE (FY28)
- 4.2%/16.3%