Financial Performance & Key Ratios
Between FY23 and FY25, Aye Finance delivered strong growth:
Revenue CAGR: 53%
PAT CAGR: 110%
AUM CAGR: 42.6%
Return on Equity improved from 5.46% in FY23 to 15.26% in FY25 and stood at 7.63% in H1FY26.
Gross NPA improved to 1.15% in FY25 from 1.28% in FY23. Capital Adequacy Ratio stood at 32.27% as of H1FY26.
The company also recorded the highest growth in AUM per branch and AUM per employee among peer MSME-focused NBFCs between FY23 and FY25.
However, the default rate increased to 38.52% in H1FY26 from 29.54% in FY23.
Risks to Consider
Intense competition in MSME lending
Regulatory and compliance risks
Asset quality and borrower default risks
High dependence on borrowed funds
Negative operating cash flows in the past
Interest rate and credit rating risks
Valuation Analysis
The IPO is priced at a P/BV of 1.45 based on a NAV of Rs. 88.66 as of H1FY26.
On annualized FY26 earnings, the issue is valued at approximately 20x P/E, compared to the industry average P/E of 19.70x, indicating that the issue is fully priced.
Our View – Should You Subscribe?
Aye Finance offers exposure to India’s expanding micro MSME lending segment supported by strong growth metrics and improving profitability.
However, considering NBFC sector risks, funding dependence, and valuation levels, investors with a long-term investment horizon may consider subscribing to the issue.
Frequently Asked Questions (FAQs)
What is Aye Finance Limited’s core business?
The company provides small-ticket business loans to micro and small enterprises across India.
What is the lot size for the IPO?
The lot size is 116 equity shares and in multiples thereafter.
Is Aye Finance IPO suitable for conservative investors?
The IPO carries NBFC sector risks and may be more suitable for investors with moderate to high risk appetite and long-term outlook.
What is the Sushil Finance view on the IPO?
The issue is recommended for subscription with a long-term investment horizon.
Brief Financials
| PARTICULARS |
₹ in Million |
As at
Sep 30, 2025 |
FY ‘25 |
FY ‘24 |
FY ‘23 |
| Total Income |
8,630.22 |
15,049.87 |
10,717.50 |
6,433.35 |
| Total Expenditure |
7,804.44 |
12,799.75 |
8,438.94 |
5,719.39 |
| AUM |
60,276.22 |
55,338.96 |
44,632.91 |
27,215.51 |
| Profit before Tax |
825.78 |
2,250.12 |
2,278.56 |
713.96 |
| Profit after Tax |
645.97 |
1,752.52 |
1,716.79 |
398.73 |
| E.P.S. (Diluted) |
3.32* |
9.34 |
10.50 |
2.54 |
| P/E (x) (Diluted) |
- |
14 |
- |
- |
| ROE (%) |
7.63* |
12.12 |
17.28 |
5.46 |
| Net Interest Margin (%) |
14.12 |
15.31 |
15.56 |
13.54 |
| Net NPA ratio (%) |
1.78 |
1.40 |
0.91 |
1.28 |
*Not annualised
PRICE CHART (@ ₹ 129) (Retail Category)
| LOT SIZE |
| Amount |
| 116 |
14,964 |
| 232 |
29,928 |
| 348 |
44,892 |
| 464 |
59,856 |
| 580 |
74,820 |
| 696 |
89,784 |
| 812 |
104,748 |
| 928 |
119,712 |
| 1,044 |
134,676 |
| 1,160 |
149,640 |
| 1,276 |
164,604 |
| 1,392 |
179,568 |
| 1,508 |
194,532 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
1,624 |
209,496 |
| Big HNI |
7,772 |
1,002,588 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
12/2/2026 |
| Initiation of refunds/unblocking ASBA Fund |
12/2/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
13/2/2026 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
16/2/2026 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
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