Aye Finance share price closed 2.82% lower at ₹167.05 on the BSE on Monday, 27 July, ending in the red despite positive market sentiment. According to reports from Mint, the NBFC stock ended lower largely due to profit booking, with the monthly decline of nearly 4% so far in July looking set to snap its three-month winning streak. The stock had previously climbed more than 2% last week, snapping its two-week losing streak after reporting strong June-quarter earnings. 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.
On 22 July, the company reported strong quarterly performance with profit after tax (PAT) growing 144% YoY to ₹74.5 crore for Q1FY27 from ₹30.6 crore in the same quarter last year, as reported by Mint. 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.
Despite the recent decline, brokerage firms maintained positive outlooks on the stock following the Q1 results. IIFL Capital maintained a buy call 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. According to Mint, 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 expectations of 30% AUM CAGR and 53% EPS CAGR over FY26–28E.
As reported by Mint, IIFL Capital expects AUM and EPS CAGR of 28% and 41%, respectively, over FY26–28 on the back of nearly 140 basis points credit cost improvement over FY26-28, operating leverage as the branch network matures, and cost of funds tailwinds from the recent rating upgrade. JM Financial indicated potential funding cost benefits from the recent credit rating upgrade, which shall lower incremental borrowing costs by 15–25 basis points over time. The brokerage raised EPS estimates by nearly 3% and 1% in FY27E and FY28E respectively, following the healthy Q1FY27 performance.
