Aye Finance Limited has received a penalty notice from BSE Limited imposing a fine of ₹1,48,680 for delayed submission of its unaudited financial results for the quarter ended December 31, 2025. The company disclosed this development through a regulatory filing on March 14, 2026, following receipt of the penalty notice from BSE on March 13, 2026.

Fine Details and Regulatory Violations

The penalty was imposed under multiple provisions of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The fine breakdown shows violations across several regulatory requirements:

The fine structure follows a per-day penalty system, with Regulation 52 violations attracting ₹5,000 per day, while Regulations 52(4) and 54(2) violations carry ₹1,000 per day each.

Company's Prior Intimation and Reasons for Delay

Aye Finance had proactively informed BSE about the potential delay on February 11, 2026, three days before the February 14, 2026 deadline. The company cited its ongoing Initial Public Offering as the primary reason for the delay in preparing financial results for the quarter and nine months ended December 31, 2025.

In its earlier communication, the company stated that the IPO process was impacting the preparation of financial results, making it unable to meet the stipulated timeline under Regulation 52 of the SEBI Listing Regulations. The company had also mentioned that its trading window remained closed for all designated persons and their immediate relatives from January 1, 2026, until 48 hours after the declaration of results.

Compliance Requirements and Next Steps

According to BSE's notice, Aye Finance must comply with the following requirements:

• Pay the fine amount within 15 days from March 13, 2026
• Submit required financial disclosures to avoid continued penalty computation
• File any waiver request through the BSE listing portal within 15 days
• Present the matter before the Board of Directors in the next meeting

The exchange has warned that failure to comply within the stipulated period could result in restrictions on future securities issuance and listing of debt securities on the Electronic Book Provider platform.

Payment and Administrative Details

The company can remit the fine amount through electronic transfer to BSE's designated ICICI Bank account or through a cheque favoring BSE Ltd. The payment must be accompanied by proper documentation including GST details and compliance officer certification.

Aye Finance has indicated that it is reviewing the penalty notice and will take necessary steps regarding this matter. The company noted that apart from the fine amount, there is no other quantifiable monetary impact on its financial, operational, or other activities.

Aye Finance Limited showcased strong operational recovery in its maiden earnings call for Q3 FY26, reporting significant improvements across key financial metrics. The micro-MSME lender, which targets unorganized micro-scale businesses across manufacturing, trading, dairy, and service sectors, demonstrated the resilience of its business model amid challenging market conditions.

Financial Performance Highlights

The company delivered robust financial results for Q3 FY26, with profit after tax surging 87% year-on-year to INR43 crores. This growth was supported by strong operational momentum and improving asset quality metrics.

Total income reached INR449 crores, representing 21.3% year-on-year growth and 5% quarter-on-quarter expansion. The company maintained healthy NIMs at 14.21% despite the increasing mix of mortgage loans in its portfolio.

Asset Quality Shows Marked Improvement

Aye Finance reported significant improvements in asset quality metrics, with collection efficiency serving as a leading indicator of portfolio health. The non-overdue bucket collection efficiency reached 99.3% in December 2025 and further improved to 99.4% in February 2026.

Credit costs declined to INR83 crores or 4.67% of AUM in Q3 FY26, continuing a four-quarter downward trend. Management expects this improvement to continue into Q4 FY26, targeting normalized credit cost levels of 3.25-3.75% range.

Strong Growth Momentum Continues

The company maintained robust growth across key operational metrics, with AUM expanding 23.5% year-on-year and 5.5% quarter-on-quarter. Disbursements grew 35% YoY to INR1,310 crores in Q3 FY26, adding 41,015 new borrowers to the platform.

The company remains on track to achieve its full-year FY26 guidance of 29-30% AUM growth, supported by strong momentum in January and February 2026.

Diversified Portfolio Strategy

Aye Finance has successfully diversified its product portfolio, with mortgage loans now comprising 22% of total AUM at INR1,350 crores. The company operates across two main product categories:

• Property-based loans (22%): Including 21% mortgage loans against residential/commercial properties
• Hypothecation loans (77.5%): Secured against business assets like machinery and inventory
  • Secured hypothecation: 40% (asset value >120% of loan)
  • Unsecured hypothecation: 37.5% (partial asset cover)

Management targets increasing the mortgage portfolio to 30% of total AUM over the next three years while maintaining the core focus on business lending.

Technology and Operational Efficiency

The company leverages advanced technology across its operations, with 100% paperless loan origination and 32% of underwriting handled through AI/ML models. Digital collection modes account for 84.1% of total collections, with 96.8% of customers registered on ACH.

Branch productivity continues to improve, with 60% of growth coming from existing branch expansion rather than new branch additions. Branches older than 4 years maintain average AUM of INR14.5 crores compared to INR4.8 crores for newer branches.

Forward Outlook

Management provided a three-year vision targeting consistent 30% growth with credit costs maintained in the 3.25-3.75% range. Operating expenses are expected to stabilize between 7-7.5% with ROA targets of 4-4.5%. The company's net worth of INR1,773 crores, augmented by the recent IPO raise of INR710 crores, provides a strong foundation for continued growth in the underserved micro-MSME segment.