Aye Finance has completed the allotment of ₹220 crore in Rated, Senior, Listed, Secured, Transferable, and Redeemable Non-Convertible Debentures (NCDs) via private placement. The Securities Allotment Committee of the Board approved the allotment on July 29, 2026, fulfilling the full issue size including the oversubscription option. This capital raise strengthens the company’s liquidity position with long-term debt funding at a fixed cost of 9.75% per annum.

The allotment was made to seven institutional investors, with Northern Arc Capital Limited emerging as the largest subscriber. The debentures carry a face value of ₹1 lakh each, totaling 22,000 units. Interest is payable monthly, and the principal will be redeemed after a tenor of 24 months from the deemed date of allotment.

Allotment Details

The following table outlines the distribution of the 22,000 debentures among the investors:

Security and Terms

The NCDs are secured by a first-ranking exclusive and continuing charge over identified book debts and loan receivables of Aye Finance Limited. The value of these hypothecated assets must remain at least 1.05 times the outstanding debenture value until final settlement. In the event of a payment default exceeding three months, a penalty interest of 2% per annum over the stated rate will apply.

Gaurav Seth, Chief Financial Officer, signed the intimation to BSE Limited and the National Stock Exchange of India Limited pursuant to Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The maturity date is set for July 28, 2028, assuming the allotment date of July 29, 2026.

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.