Aye Finance share price closed 2.82% lower at ₹167.05 on the BSE on Monday, 27 July. Despite positive market sentiment, the NBFC stock ended in the red largely due to profit booking. Last week, the stock climbed more than 2%, snapping its two-week losing streak after reporting strong June-quarter earnings.
On a monthly scale, the stock is now nearly 4% down so far in July, looking set to snap its three-month winning streak. From April to June, the stock clocked a solid cumulative gain of 82%.
Since listing on February 16, 2026, Aye Finance shares have surged over 29%, rising from their issue price of ₹129 to ₹167.05 in less than six months.
Aye Finance Q1 results
On 22 July, the company said its profit after tax (PAT) grew 144% YoY to ₹74.5 crore for Q1FY27 from ₹30.6 crore in the same quarter last year. However, on a quarter-on-quarter basis, the company’s profit dropped 13.3% from ₹85.91 crore in Q4FY26.
Total revenue from operations for the quarter rose 17.7% YoY but dropped 7.3% QoQ to ₹477.37 crore.
The company reported a 28% YoY growth in assets under management (AUM) to ₹7,324 crore, driven by a 38% increase in new customer onboarding.
Brokerages remain positive after Q1 results
Brokerage firm IIFL Capital maintained a buy call on the stock and raised the target price to ₹220 from ₹180, implying FY28 PB and PE of 1.6 times and 11.5 times, respectively, for a ROA and ROE of 4.2% and 16.3%, respectively.
“After just 6% PAT CAGR over FY24-26 despite nearly 25% AUM CAGR, we believe Aye is at an inflection point and expect AUM and EPS CAGR of 28% and 41%, respectively, over FY26–28 on the back of (1) nearly 140 basis points credit cost improvement over FY26-28,
(2) operating leverage as the branch network matures, and (3) cost of funds tailwinds from the recent rating upgrade and lower incremental cost of funds,” said IIFL Capital.
Brokerage firm JM Financial also maintained a buy call with a revised target price of ₹197 from ₹190 earlier, valuing the stock at 1.4 times FY28E BVPS, citing it continues to expect 30% AUM CAGR and 53% EPS CAGR over FY26–28E.
“Asset quality continued to improve for the fourth consecutive quarter with GS3 declining nearly 30 basis points QoQ to 4.5% and credit costs moderating to 4.5%. Management reiterated its FY27 guidance of 25–30% AUM growth and 3.5–4% credit costs. They indicated potential funding cost benefits from the recent credit rating upgrade, which shall lower incremental borrowing costs by 15–25 basis points over time. We are raising EPS by nearly 3% and 1% in FY27E and FY28E, respectively, following a healthy Q1FY27 performance,” said JM Financial.
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