India, Feb. 4 -- IPO-bound NBFC Aye Finance's net profit declined 40% to INR 64.3 Cr in the first half of the current financial year (H1 FY26) from INR 106.9 Cr in H1 FY25, as margin narrowed and defaults increased.

The company's operating revenue grew 21.8% to INR 843.5 Cr during the period under review from INR 692.24 Cr in H1 FY25. Including other income of INR 19.5 Cr, the NBFC's total income stood at INR 863 Cr as against INR 717 Cr in H1 FY25.

A bulk of Aye Finance's income for the period came from interest collected from loans and deposits, making up for 87% of its total operating revenue. Interest income for the period stood at INR 733.8 Cr, up 14.6% from INR 640 Cr in H1 FY25. Out of this, INR 720.7 Cr was interest collected on...