IPO-bound non-banking financial company (NBFC) Aye Finance has reported a sharp 40% year-on-year decline in net profit to INR 64 Cr for the first half of FY26, highlighting the growing pressure on lenders focused on micro, small and medium enterprises (MSMEs). The muted profitability comes at a crucial juncture for the company, which is preparing to tap public markets amid heightened investor scrutiny of asset quality, growth sustainability, and risk management.
According to financial disclosures, Aye Finance’s profit contraction in H1 FY26 was primarily driven by higher credit costs, elevated provisioning, and a more cautious lending stance in select geographies. While overall loan disburs
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