Aye Finance profit halves in Q1 FY26; revenue up 21%

Microlending platform Aye Finance has shown moderate growth in the first quarter of the ongoing fiscal year (Q1 FY26). The firm’s revenue grew by 21% over the period, while profit fell by 50%.

Aye Finance's revenue from operations increased 21.5% to Rs 407 crore in Q1 FY26, compared to Rs 335 crore in Q1 FY25, its unaudited financial statements sourced from the company’s website show.

On a quarter-on-quarter basis, Aye Finance’s operating revenue remained flat at Rs 407 crore in Q1 FY26 as compared to Rs 409 crore in Q4 FY25.

Aye Finance generated the majority of its revenue from Interest income which accounted for 89% of income. This revenue source increased 16% to Rs 361 crore in Q1 FY26. Rest of the revenue came from gain on fair value and commissions.

The company also made Rs 9 crore from non-operating sources which took Aye Finance’s total revenue to Rs 416 crore in the first quarter.

On the expense front, Finance cost remained the largest cost center for Aye Finance, accounting for 33% of its total expenditure. This expense increased by 17% year-on-year, rising to Rs 126 crore in Q1 FY26 from Rs 108 crore in Q1 FY25. Employee benefit rose 40% to Rs 115 crore in Q1 FY26 from Rs 82 crore in Q1 FY25.

Overall, Aye Finance's total costs grew 39% to Rs 375 crore in Q1 FY26 from Rs 269 crore in Q1 FY25.

Due to the company's expense outpacing revenue growth, its profit decreased 50% to Rs 30.5 crore in Q1 FY26 from Rs 61 crore in Q1 FY25. However, the company reported a positive EBITDA of Rs 172 crore.

Aye Finance received final approval from the market regulator for its public listing, following the submission of its Draft Red Herring Prospectus (DRHP) in December. The forthcoming IPO will include a fresh issue of equity shares totaling Rs 885 crore, alongside an offer-for-sale (OFS) of Rs 565 crore. Investors such as LGT Capital, CapitalG LP, A91 Emerging Fund I LLP, and Alpha Wave Ventures are expected to participate in the OFS.