Aye Finance has outlined its strategic vision and financial outlook, targeting an Assets Under Management (AUM) of approximately Rs 24,000 crore within five years. The non-banking financial company, focused on micro-scale MSMEs, reported an AUM of Rs 7,044 crore as of March 31, 2026, marking a 27% increase in FY26. The company provided guidance for AUM growth of 25–30% in FY27 and a compound annual growth rate (CAGR) of 28–33% over the next three years.

Financial Performance and Outlook

The company’s Return on Assets (RoA) stood at 3.08% in FY26, a period described as a difficult credit vintage due to an industry-wide over-lending cycle. Management stated that in a normal year, as credit costs normalise, the RoA could reach 5% or more. Through the cycle, the company expects an RoA of roughly 4–6%. Operating leverage is expected to improve, with the opex-to-assets ratio guided down from 9.6% in FY26 to 8.25–8.75% in FY27 and 7.0–7.5% over three years.

Key Metrics and Guidance

Aye Finance’s portfolio consists of 78% Hypothecation Loans and 22% Mortgage Loans. The company serves 6.5 lakh active customers through a network of 571 branches across 18 states and 3 union territories. The Capital to Risk-weighted Assets Ratio (CRAR) remains strong at 42%, entirely Tier I, with a debt-to-equity ratio of 2.06x.

Strategic Growth Drivers

The company’s growth strategy focuses on deepening reach in existing segments and widening product offerings, such as gold loans and affordable housing. Aye Finance emphasised its cluster-based underwriting method, which estimates cash flows without relying on formal books. Technology integration across the value chain, including proprietary models for underwriting and collections, supports its unit economics. The average cost of borrowings has reduced to 10.9% in FY26, aided by a recent credit rating upgrade to 'A+ stable' by India Ratings in June 2026.

Credit Quality and Risk Management

Credit costs were 4.76% in FY26 and are guided to 3.5–4.0% in FY27. The company noted that credit costs have remained range-bound, with elevated readings confined to periods of system-wide stress, such as Covid in FY22 and the industry over-lending cycle in FY25. Diversification across states, sectors, and 70+ business clusters has helped the portfolio navigate past shocks without disruption.

Aye Finance has approved the grant of 12,63,280 options to eligible employees under its Aye Finance Employee Stock Option Plan 2024 (ESOP 2024). The decision was taken by the company's Nomination and Remuneration Committee during a meeting held on July 20, 2026. Each option is convertible into one equity share with a face value of ₹2.

The exercise price for these options has been set at 95% of the latest available closing price of the company's shares on the stock exchange where they are listed, as of the grant date. In instances where the shares are listed on multiple exchanges, the closing price on the recognized stock exchange with the higher trading volume on that date will be considered to determine the exercise price.

The options will vest over a period ranging from a minimum of one year to a maximum of four years from the date of the grant. Once vested, the options can be exercised within a period of five years from the date of vesting. The ESOP 2024 is administered by the Nomination and Remuneration Committee and is implemented through the direct route for the fresh allotment of shares.

Equity shares issued upon the exercise of these vested options will rank pari-passu with all other existing equity shares of the company from the date of allotment. These shares will be freely transferable and will not be subject to any lock-in period restrictions, except as may be required under applicable laws.

The regulatory disclosure was made in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, and the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Key Details of ESOP 2024 Grant