Aye Finance IPO: All Details Covered
All you need to know
Along with Fractal, there is another IPO coming next week. We have already covered the Fractal IPO in detail here. Next, we are going to cover Aye Finance IPO.
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Aye Finance IPO: Key Details
Price band: a price band of Rs 122 to 129 per share
IPO Date: 9 Feb to 11 Feb
Tentative Listing Date: 16 Feb
Lot Size: 116 shares
Employee Discount: NA
Aye Finance IPO: About Business
The company is a non-banking financial company – middle layer (“NBFC-ML”) focused on providing loans to micro scale micro, small and medium enterprises (“MSMEs”) across India. It offers a range of business loans for working capital and business expansion needs, extended against hypothecation of working assets or against security of property. These loans cater to customers across manufacturing, trading, service, and allied agriculture sectors.
The company is among the leading non-banking financial companies (NBFC) providing business loans to largely underserved micro-scale enterprises in India. As of September 30, 2025, it had 586,825 active unique customers spread across 18 states and 3 union territories, with assets under management (“AUM”) of Rs 60,27.62 crore. The business focuses on small-ticket loans, with an average ticket size (“ATS”) at disbursement of ₹0.18 million, primarily to micro enterprises. Strong expertise in underwriting business cash flows across diverse business clusters has helped maintain stable credit costs and enabled profitable scaling of operations. The company is the most geographically diversified lender among peer MSME-focused NBFCs.
It is also the most geographically diversified lender among peer MSME-focused NBFCs, with the top three states contributing 41.3% and 42.6% of total AUM as of March 2025 and September 2025, respectively. AUM is well distributed across multiple industries, ensuring balance across regions and sectors. This diversified portfolio structure reduces geographic concentration risk and strengthens overall risk management and operational resilience. The graph below illustrates the AUM split by industry as of September 30, 2025.
Aye Finance IPO: Financials
Total Income: Total income has shown strong growth over the medium term, reflecting balance sheet expansion and higher disbursements. Total income increased from Rs 643.34 crore in FY23 to Rs 1,071.75 crore in FY24, marking a growth of 66.6%. This momentum continued into FY25, with total income rising to Rs 1,504.99 crore, up 40.4% YoY. In H1 FY26, total income stood at Rs 863.02 crore, compared to Rs 717.05 crore in H1 FY25, representing a 20.4% YoY increase, indicating sustained growth despite a tighter credit environment.
Net Interest Income (NII): Net interest income has grown consistently, supported by loan book expansion and stable margins. NII rose from Rs 368.53 crore in FY23 to Rs 622.16 crore in FY24, a growth of 68.9%. In FY25, NII further increased to Rs 857.96 crore, up 37.9% YoY. For H1 FY26, NII was Rs 474.97 crore, compared to Rs 410.98 crore in H1 FY25, registering a 15.6% YoY growth.
Net Interest Margin (NIM): Net interest margins have remained structurally strong. NIM improved from 13.54% in FY23 to 15.56% in FY24, reflecting better pricing and portfolio mix. Margins remained stable at 15.31% in FY25. In H1 FY26, NIM moderated to 14.12%, compared to 15.38% in H1 FY25, largely due to higher borrowing costs, though margins remain healthy for an MSME-focused NBFC.
Profit After Tax (PAT): Profitability has scaled meaningfully over the last three years. PAT increased sharply from Rs 39.87 crore in FY23 to Rs 171.68 crore in FY24, a more than 4x increase, driven by operating leverage. In FY25, PAT further rose to Rs 175.25 crore, indicating stable earnings. In H1 FY26, PAT stood at Rs 64.60 crore, compared to Rs 107.80 crore in H1 FY25, reflecting a YoY decline, primarily due to higher credit costs and margin normalization.
Asset Quality: Asset quality remains controlled, though some normalization is visible. Gross NPA increased from 2.49% in FY23 to 3.19% in FY24 and further to 4.21% in FY25. In H1 FY26, Gross NPA stood at 4.85%, compared to 3.32% in H1 FY25. Net NPA rose from 1.28% in FY23 to 0.91% in FY24, before increasing to 1.40% in FY25 and 1.78% in H1 FY26. Despite the uptick, provisioning coverage remains healthy at 64.47% in H1 FY26, indicating prudent risk management.
Capital Adequacy Ratio (CAR): The capital position remains strong and comfortably above regulatory requirements. CAR improved from 31.07% in FY23 to 32.79% in FY24, and further to 34.92% in FY25. In H1 FY26, CAR stood at 32.27%, providing adequate growth headroom and resilience against asset quality volatility.
AUM has grown from Rs 2,721.55 crore as of March 31, 2023 to Rs 4,463.29 crore as of March 31, 2024, further to Rs 5,533.90 crore as of March 31, 2025, and stood at Rs 6,027.62 crore as of September 30, 2025.
Disbursements increased from Rs 2,357.09 crore in FY23 to Rs 3,938.93 crore in FY24, and further to Rs 4,291.34 crore in FY25. Disbursements for the six months ended September 30, 2025 were Rs 2,316.80 crore.
All numbers in crore
Aye Finance IPO: Strengths
Leading Lender of Small-Ticket Loans to Micro Scale MSMEs with Comprehensive Product Offerings and Focus on Serving Large and Unaddressed TAM.
Strong Sourcing Capabilities Supported by a Diversified Pan-India Presence and High Customer Retention.
Their underwriting expertise gives us a key competitive advantage that has been honed over the years. Lending to MSMEs involves challenges such as limited financial records, small loan sizes, restricted access to traditional banks and financial institutions, and reluctance to provide property as collateral for smaller loans, making it difficult to underwrite loans for such customers.
The company’s collection processes have been designed to address the repayment behaviors of our target customer segment. This starts with ensuring that the customers have registered ACH mandates to minimize cash collection on the field.
Aye Finance IPO: Risks
The business is exposed to the risk of non-payment or default by borrowers, which may adversely affect operations, financial condition, and results. The Gross NPA ratio increased from 2.49% as of March 31, 2023 to 4.21% as of March 31, 2025, and further to 4.85% as of September 30, 2025.
Operations depend significantly on the accuracy and completeness of information provided by customers and certain third-party service providers. Any reliance on erroneous, incomplete, or misleading information may impair the assessment of borrower creditworthiness, as well as the valuation of collateral and verification of title.
Inability to effectively control Gross Non-Performing Assets, Stage 3 Assets, or Net NPAs within the portfolio, failure to maintain adequate provisioning coverage, or changes in regulatory provisioning requirements could adversely impact financial condition and operating performance.
Unsecured loans formed a meaningful portion of the portfolio. In the six months ended September 30, 2025 and September 30, 2024, and in Fiscals 2025, 2024, and 2023, unsecured loans accounted for 37.97%, 41.47%, 39.68%, 37.91%, and 30.26% of total assets under management, respectively. Any delay or inability to recover such receivables may adversely affect cash flows, business performance, and overall financial condition.
Aye Finance IPO: GMP
Aye Finance GMP is currently 0% as of 9 Feb 2026.
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