AlphaStreet India

Aye Finance Ltd Q3 FY2025-26 Earnings Conference Call

Aye Finance Ltd held its maiden Q3 FY2025‑26 earnings conference call, outlining its niche focus on lending to India’s unorganized microscale businesses – manufacturers, traders, dairy and service enterprises that lack formal financial records. The company reported a 35% year‑on‑year increase in loan disbursements to ₹1,310 crore, adding 41,500 new borrowers. Assets under management grew 23.5% YoY, and total income rose 21.3% to ₹449 crore. Collection efficiency for the non‑OD bucket improved to 99.4%, while the bucket‑one recovery climbed to 60%. Management highlighted that 22% of the loan book is secured by property, with 40% of hypothecation loans backed by assets valued at least 120% of the loan. The portfolio spans 18 states and three union territories, supported by a 500‑branch network and an in‑house sales team that avoids third‑party sourcing. A cluster‑based, fully automated underwriting engine uses alternative data such as worker count and inventory levels. These metrics suggest a resilient, diversified asset class insulated from macro‑economic shocks, positioning Aye Finance for continued double‑digit growth and improving profitability as mortgage‑related costs normalize. Investors may view the firm as a rare pure‑play exposure to India’s micro‑enterprise credit market.