NBFC stock falls 7% despite reporting strong Q3 results

Synopsis: Shares of a small-cap NBFC fell nearly 7% despite a strong Q3FY26 performance. Disbursements rose 35% to ₹1,310 crore, while AUM grew 23.5% to ₹6,356 crore. The company added 41,000 borrowers and expanded branches to 571, even as broader markets declined with Nifty down 2.7% and Sensex losing 2,200 points.

The shares of this Non-Banking Financial Company have plummeted up to 7 percent in today’s trading session, despite the company’s net profit and revenue jumping 86 percent and 23 percent in Q3FY26.

With a market capitalization of Rs 2,739.31 crore, the shares of Aye Finance Ltd were trading at Rs 111.00 per share, decreasing around 4.27 percent as compared to the previous closing price of Rs 115.95 apiece.

Q3FY26 Highlights

The shares of Aye Finance Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which revenue increased by 23 percent on a year-on-year basis from Rs 361 crore in Q3FY25 to Rs 443 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 1.3 percent from Rs 437 crore in Q2FY26 to Rs 443 crore in Q3FY26.

Moreover, net profit increased by 86 percent on a yearly basis from Rs 23 crore in Q3FY25 to Rs 43 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 23 percent from Rs 35 crore in Q2FY26 to Rs 43 crore in Q3FY26. 

Aye Finance showed steady operating improvement over the past year. Operating profit rose from ₹27 crore in Dec 2024 to ₹49 crore in Dec 2025, reflecting strong business momentum. Operating profit margin also improved from 7% to 11% during the period, indicating better cost efficiency and stronger profitability as the company expanded its lending operations.

Additionally, Business momentum remained strong in Q3FY26, driven by healthy loan demand and expanding reach. Disbursements grew 35% YoY to ₹1,310 crore, while AUM increased 23.5% to ₹6,356 crore, reflecting a larger and more active loan book. The company also added over 41,000 borrowers during the quarter and expanded its branch network by 9%, strengthening its presence and supporting future growth.

Management Commentary

Commenting on the performance, Mr. Sanjay Sharma, Managing Director, Aye Finance Ltd, said, “Our Q3 results demonstrate the resilience of the micro-enterprise sector and our ability to bridge the credit gap for underserved businesses. Disbursals are accelerating, and we remain firmly on track to deliver the 29-30% AUM growth in FY26 and beyond. With asset quality improved to normalised levels, we have cleared the runway for a sharp, sustained uptick in profitability over the coming quarters. Our focus remains on sustaining this trajectory through disciplined underwriting and a customer-centric approach enabled by technology & data science.”

Aye Finance Ltd faced selling pressure today as broader markets witnessed a sharp decline. Benchmark indices Nifty fell about 2.7% while Sensex dropped over 2,200 points, amid rising geopolitical tensions and a surge in crude oil prices. The spike in oil, driven by the US-Iran conflict, has raised inflation concerns and triggered heavy foreign investor selling across Indian equities.

Aye Finance Ltd is a non-banking financial company focused on providing business loans to micro and small enterprises in India. The company primarily serves underserved entrepreneurs who lack access to traditional banking credit. Using technology-driven underwriting and data analytics, Aye Finance aims to bridge the credit gap and support the growth of small businesses.

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