Aye Finance Limited

Aye Finance Limited is a non-banking financial company – middle layer ('NBFC-ML') focused on providing loans to micro scale micro, small and medium enterprises ('MSMEs') across India. They offer a range of business loans for working capital and business expansion needs, against hypothecation of working assets or against security of property to customers across manufacturing, trading, service and allied agriculture sectors. They are providing business loans to the largely underserved micro scale enterprises in India, with 5,86,825 active unique customers across 18 states and 3 union territories and with assets under management ('AUM') of Rs 60,276.22 million, as of September 30, 2025. They offer small-ticket business loans with an average ticket size ('ATS') on disbursement of Rs 0.18 million to micro-enterprises. Over the last three Fiscals and in the six months ended September 30, 2025, they have expanded significantly, adding more than 260 branches. Their target customers are micro scale businesses with annual turnovers ranging from Rs 2 million to Rs 10 million, predominantly located in semi-urban areas. The industries they serve include manufacturing, trading, service and allied agriculture. Customers operate with a permanent business setup and have been in the same line of business for at least two years. As of September 30, 2025, over 90.86% of their customers owned their residence or place of business or both, and 94.04% employ five or less employees (excluding direct assignment purchases). Further, as of September 30, 2025, 37.17% of the newly sourced customers were new to credit. As per financial performance, Aye Finance Limited has posted total income / net profits of Rs 643.33 Cr / Rs 39.87 Cr (FY23), Rs 1,071.50 Cr / Rs 171.67 Cr (FY24), Rs 1,504.98 Cr / 175.25 Cr (FY25) and Rs 863.02 Cr / 64.59 Cr (upto Q2 FY26). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 8.59 and average RoNW of 12.73% for last three fiscals. Issue is priced at a P/BV of 1.45 as per NAV of Rs 88.66/- as on 30.09.25. If we attribute latest earnings of FY24, FY25, TTM and annualised FY26 on equity post issue, then asking price is at a P/E of around 18.54, 18.17, 24.11 and 24.64 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, Axis Capital Limited, IIFL Capital Services Limited , JM Financial Limited, Nuvama Wealth Management Limited are associated with this IPO, and has handled 211 IPOs in last three fiscal years. ( As on 04.02.26 ) As per financials, Aye Finance Limited has shown good growth, RoNW is 12.12% and P/E is 18.54, 18.17, 24.11 and 24.64 respectively as per FY24, FY25, TTM and annualised FY26 earnings. So issue looks fully priced. Company is an NBFC and providing loans to MSMEs across India, which is highly competitive business segment. Gross and Net NPAs of company are increasing. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Abhishek Bansal
• 2 Vaibhav Khandelwal