Aye Finance Ltd (AYE) Quarterly Report Analysis & Insights

Aye Finance Ltd

| Board Meeting Outcome & Financial Results – Q3 FY26

⬤6th Mar 26

Summary : Aye Finance reported unaudited Q3/9M FY26 results, showing revenue growth but facing increased delinquencies and covenant non-compliance amidst industry stress, following a successful IPO.

Quarterly Report Analysis & Insights

Financial Disclosures

Total Expenses (9M FY26): Rs. 1,181.55 Crores
Finance Cost (9M FY26): Rs. 399.52 Crores
Impairment on Financial Instruments (9M FY26): Rs. 256.07 Crores
Employee Benefit Expenses (9M FY26): Rs. 359.73 Crores
Gross Stage III ratio (9M FY26): 4.94%
Net Stage III ratio (9M FY26): 1.98%
Provision coverage ratio (9M FY26): 61.14%
Total Revenue from Operations (9M FY26): Rs. 1,286.29 Crores
Total Income (9M FY26): Rs. 1,317.97 Crores
Debt equity ratio (9M FY26): 3.10 times
Net worth (9M FY26): Rs. 1,680.47 Crores
Total debts to total assets (9M FY26): 73.35%
Capital to risk-weighted assets ratio (CRAR) (9M FY26): 31.45%
Liquidity coverage ratio (LCR) (9M FY26): 464.15%
Financial results of FAME (100% owned subsidiary) are not consolidated.

Corporate Overview

Corporate Office: Gurugram, Haryana, India
Registered Office: New Delhi, India
Increase in write-offs due to higher delinquencies.
Industry wide stress in Miro Business Loans and MFI Loans.
Middle Layer Non-Banking Financial Company (NBFC-MLJ) registered with RBI.
Formal and compliance-focused, reporting financial results and regulatory adherence.
Micro Business Loans
MFI Loans
Interest income
Fees and commission income
Net gain/loss on derecognition of financial instruments
Net gain on fair value changes
Other income
Initial Public Offering (IPO) completed on February 16, 2026, raising Rs. 672.24 Crores.

Risk Factors

Higher delinquencies impacting loan portfolio quality.
Industry-wide stress in micro/MFI loans.
Non-compliance with certain debt covenants.
New Labour Codes increase employee benefit expenses.

Key Drivers

Successful IPO completed in February 2026.
Strong growth in interest and fee income.
High liquidity coverage ratio at 464.15%.
Net worth increased to Rs. 1,680.47 Crores.

Auditor’s Report

Limited Review Report, not an audit opinion.
Review of unaudited financial results for quarter and nine months ended December 31, 2025.
Compliance with SEBI Listing Regulations and Indian Accounting Standards.
Compliance with financial covenants for listed non-convertible debt securities.

Board Commentary

Non-compliance with debt covenants due to higher delinquencies and industry stress.
Compliance with SEBI Listing Regulations (30, 33, 51, 52, 63(2)).
Adherence to Indian Accounting Standard 34 and Companies Act, 2013.
Impact of new Labour Codes on employee benefit provisions (Gratuity) of Rs 1.68 Crores.
IPO completed on February 16, 2026, raising Rs. 672.24 Crores from fresh issue.
Equity shares sub-divided from Rs. 10 to Rs. 2 face value.
Granted stock options to eligible employees.

Corporate Governance

Auditors complied with ICAI Code of Ethics requirements.
Audit Committee reviewed unaudited financial results.
Nomination & Remuneration Committee approved ESOP transfers.
Non-compliance with certain debt covenants due to operational performance.

Management Discussion & Analysis

Future Strategy

Continuous monitoring of new Labour Code finalization for accounting treatment.

Industry Overview

Industry wide stress observed in Miro Business Loans and MFI Loans.

Operational Focus Areas

Ensuring compliance with SEBI Listing Regulations and RBI guidelines.
Adherence to Indian Accounting Standards (Ind AS).

Performance Drivers

Growth in interest income and fees/commission income.
Net gains on financial instruments contributing to revenue.

Risk Control Measures

Waiver secured from debenture holders for some covenant non-compliance.

Critical Risks

Higher delinquencies and write-offs in loan portfolio.
Non-compliance with certain financial covenants of debt securities.