Aye Finance has secured approval from its Working Committee of the Asset and Liabilities Committee (WALCO) for the issuance of up to ₹220 crore in Non-Convertible Debentures (NCDs) via private placement. The committee meeting held on July 23, 2026, finalized the terms for the rated, senior, listed, secured, transferable, and redeemable instruments. This capital raise strengthens the company’s liquidity position and provides access to long-term debt funding at a fixed cost.

The issuance includes a base amount of ₹200 crore with an oversubscription option (green shoe) of up to ₹20 crore. Each debenture has a face value of ₹1 lakh, totaling 22,000 units at maximum size. The company intends to allot the debentures in dematerialized form on a private placement basis. The proposed date of allotment is July 29, 2026, subject to finalization in the transaction documents.

Key Terms of the NCD Issuance

The debentures carry a coupon interest rate of 9.75% per annum, payable monthly. The principal amount will be redeemed on the final redemption date, which is set at 24 months from the deemed date of allotment. If the allotment occurs as proposed on July 29, 2026, the maturity date will be July 28, 2028. In the event of a payment default exceeding three months, an additional penalty interest of 2% per annum over the stated interest rate will apply until the default is cured or the debentures are fully redeemed.

Security Structure and Compliance

The NCDs are secured by a first-ranking exclusive and continuing charge created in favor of the debenture trustee. This charge covers certain identified book debts and loan receivables of Aye Finance Limited. The value of these hypothecated assets must remain at least 1.05 times the value of the outstanding debenture amounts at all times until the final settlement date. No other special rights or privileges are attached to the instrument beyond those specified in the Debenture Trust Deed (DTD).

The approval was granted pursuant to Regulations 30 and 51 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Gaurav Seth, Chief Financial Officer, signed the intimation to BSE Limited and the National Stock Exchange of India Limited. The WALCO meeting commenced at 5:30 P.M. IST and concluded at 5:45 P.M. IST on July 23, 2026.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE501X01029/0a26d837-e296-49bb-b366-d15d188d0d6f.pdf

Aye Finance reported a robust financial performance for the quarter ended June 30, 2026 (Q1FY27), with net profit rising 144% year-on-year to ₹75 crore from ₹31 crore in the same period last year. The surge in profitability was driven by lower credit costs, which moderated to 4.01%, and stronger operating leverage. Assets under management (AUM) grew 28% YoY to ₹7,324 crore, tracking within the company's FY27 guidance range of 25-30%, supported by healthy demand from both existing and new customers.

Financial Performance Highlights

The company's annualised earnings per share (EPS) for the quarter was ₹3.02. The return on assets under management (RoAUM) was recorded at 4.2%, while the return on equity (RoE) stood at 11.7%. Aye Finance's net worth was reported at ₹2,603 crore. Disbursement growth came in at 22% YoY to ₹1,219 crore, slightly below the targeted growth range of 25-30%. The following table summarizes the key financial metrics for Q1FY27:

Asset Quality and Capital Adequacy

Aye Finance reported an improvement in asset quality on a quarter-on-quarter basis. The Gross Non-Performing Assets (GNPA) ratio declined to 4.49% from the previous quarter, while the Net Non-Performing Assets (NNPA) ratio eased to 1.67%. The provision coverage ratio (PCR) was enhanced by 14 basis points to 63.80% as a measure of prudence. The company also noted a credit rating upgrade to IND A+ with a Stable Outlook from India Ratings & Research in June 2026.

The table below captures the asset quality movement:

Management Commentary

Sanjay Sharma, Managing Director of Aye Finance, stated that the Q1FY27 performance reflects the robustness of the cluster-based underwriting model. He highlighted the 144% improvement in PAT and 28% growth in AUM YoY, alongside a 29 basis points reduction in credit costs. The improvement in asset quality alongside strong profitable growth demonstrates the management's philosophy of scaling up with good credit discipline.