Aye Finance Limited (formerly known as Aye Finance Private Limited)

Financial Results Overview

Quarter ended September 30, 2026 (Unaudited):

  • Revenue from operations: ₹514.39 crores
  • Interest income: ₹479.26 crores
  • Fees and commission income: ₹20.51 crores
  • Net gain on derecognition of financial instruments: ₹10.12 crores
  • Net gain on fair value changes: ₹4.50 crores
  • Other income: ₹12.73 crores
  • Total income: ₹527.12 crores
  • Expenses: ₹411.32 crores
  • Finance cost: ₹144.68 crores
  • Impairment on financial instruments: ₹81.90 crores
  • Employee benefit expenses: ₹135.74 crores
  • Depreciation and amortization: ₹6.43 crores
  • Other expenses: ₹42.57 crores
  • Profit before tax: ₹115.80 crores
  • Tax expense: ₹29.08 crores
  • Current tax: ₹26.93 crores
  • Deferred tax: ₹2.15 crores
  • Profit for the period: ₹86.72 crores
  • Other comprehensive loss: ₹(1.18) crores
  • Total comprehensive income: ₹88.79 crores
  • Earnings per share (Basic): ₹3.51
  • Earnings per share (Diluted): ₹3.48

Half year ended September 30, 2026 (Unaudited):

  • Revenue from operations: ₹991.76 crores
  • Other income: ₹25.02 crores
  • Total income: ₹1,016.78 crores
  • Expenses: ₹803.83 crores
  • Profit before tax: ₹212.95 crores
  • Tax expense: ₹51.73 crores
  • Profit for the period: ₹161.22 crores
  • Total comprehensive income: ₹157.77 crores
  • Earnings per share (Basic): ₹6.53
  • Earnings per share (Diluted): ₹6.49

Balance Sheet Position (as at September 30, 2026)

Assets:

  • Total financial assets: ₹8,603.78 crores
  • Cash and cash equivalents: ₹851.21 crores
  • Bank balances other than cash equivalents: ₹490.45 crores
  • Derivative financial instruments: ₹86.41 crores
  • Loans: ₹6,849.85 crores
  • Investments: ₹222.96 crores
  • Other financial assets: ₹102.90 crores
  • Total non-financial assets: ₹169.73 crores
  • Current tax assets (net): ₹28.74 crores
  • Deferred tax assets (net): ₹55.01 crores
  • Property, plant and equipment: ₹12.31 crores
  • Right of use assets: ₹42.97 crores
  • Intangible assets under development: ₹2.99 crores
  • Intangible assets: ₹2.88 crores
  • Other non-financial assets: ₹24.83 crores
  • Total assets: ₹8,773.51 crores

Liabilities and Equity:

  • Total financial liabilities: ₹5,978.77 crores
  • Debt securities: ₹1,271.15 crores
  • Borrowings (other than debt securities): ₹4,587.17 crores
  • Lease liabilities: ₹46.61 crores
  • Other financial liabilities: ₹73.84 crores
  • Total non-financial liabilities: ₹100.13 crores
  • Current tax liabilities (net): ₹10.82 crores
  • Provisions: ₹58.68 crores
  • Other non-financial liabilities: ₹30.63 crores
  • Equity: ₹2,694.61 crores
  • Equity share capital: ₹49.02 crores
  • Other equity: ₹2,645.59 crores
  • Total liabilities and equity: ₹8,773.51 crores

Cash Flow Statement (Half year ended September 30, 2026)

  • Net cash used in operating activities: ₹(112.35) crores
  • Net cash used in investing activities: ₹(206.73) crores
  • Net cash generated from financing activities: ₹549.90 crores
  • Net increase in cash and cash equivalents: ₹230.83 crores
  • Cash and cash equivalents at beginning: ₹620.38 crores
  • Cash and cash equivalents at end: ₹851.21 crores

Key Notes and Disclosures

1. Company Status: Aye Finance Limited is a Middle Layer Non-Banking Financial Company (NBFC-ML) registered with RBI.

2. Auditor Review: The unaudited financial results were subjected to limited review by M S K A & Associates LLP, who issued an unmodified conclusion on October 21, 2026. The financial results for previous periods were reviewed/audited by S S Kothari Mehta & Co. LLP.

3. Accounting Standards: Prepared in accordance with Ind AS 34, RBI Guidelines, and other recognized accounting principles generally accepted in India.

4. COVID-19 Resolution Framework: Exposure to accounts classified as Standard consequent to implementation of resolution plan as at September 30, 2026:

  • Personal loans: ₹0.04 crores (reduced to ₹0.02 crores)
  • Amount paid by borrowers during half year: ₹0.01 crores

5. Loan Transfers: During half year ended September 30, 2026:

  • Amount of loan accounts transferred: ₹39.95 crores
  • Retention of beneficial economic interest (MRR): 10%
  • Weighted average maturity: 90.46
  • Weighted average holding period: 10.33
  • Coverage of tangible security: 0%
  • Rating-wise distribution: Unrated

6. Co-lending Arrangement (as at September 30, 2026):

  • Number of CLA partners: 2
  • Number of outstanding cases: 39,096
  • Amount of Gross Outstanding: ₹53.31 crores
  • Weighted average rate of interest: 31.27%
  • Standard loans: ₹42.70 crores
  • Non-Performing Loans: ₹10.61 crores

7. Segment Reporting: No separate reportable segment as per Ind AS 108.

8. Subsidiary: Company owns 100% of Foundation for Advancement of Micro Enterprises (FAME), a Section 8 company, which is not consolidated as it doesn't meet definition of control under Ind AS 110.

9. Security Cover: All listed secured Non-Convertible Debentures are secured by way of first exclusive charge on hypothecated book debts of the Company up to the extent minimum of 100% of the amount outstanding.

10. IPO Utilization: Company's equity shares were listed on NSE and BSE on February 16, 2026 pursuant to IPO of 78,294,571 equity shares at issue price of ₹129 per share. Net proceeds of ₹672.24 crores from fresh issue fully utilized for augmenting capital base to meet future capital requirements.

11. ESOP Allotment: During half year ended September 30, 2026, Aye Finance Employees Welfare Trust transferred 504,152 equity shares to employees. Company allotted 3,913 equity shares to eligible grantee pursuant to exercise of options under ESOP Plan 2020.

Regulatory Compliance Disclosures

Security Cover Certificate: Pursuant to Regulation 54 of SEBI Listing Regulations, the Company provided security cover certificates for two debenture trustees:

  • Catalyst Trusteeship Limited: Security cover ratio of 1.1
  • Mitcon Credentia Trusteeship Services Limited: Security cover ratio of 1.1

Covenant Compliance: Auditors observed that for ISIN INE501X07588, the Company is in breach of the required financial covenant of (PAR 90 + Write off)/Gross Loan Portfolio due to increase in write-offs from higher delinquencies and industry-wide stress in Micro Business Loans and MFI Loans. Requisite waiver received.

Utilization of Issue Proceeds: Statement under Regulation 52(7) & (7A) shows no deviation/variation in use of funds raised through private placement of NCDs (INE501X07737: ₹140 crores; INE501X07745: ₹220 crores).

Financial Ratios (Half year ended September 30, 2026)

  • Debt equity ratio: 2.25 times
  • Net worth: ₹2,621.80 crores
  • Total debts to total assets: 67.30%
  • Net profit margin: 15.86%
  • Gross NPA ratio: 4.20%
  • Net NPA ratio: 1.62%
  • Provision coverage ratio: 62.42%
  • Capital to risk-weighted assets ratio: 41.01%
  • Liquidity coverage ratio: 404.31%