Aye Finance Ltd., a non-banking financial company focused on lending to micro-enterprises, reported provisional business performance for the quarter and year ended March 31, 2026, showing strong growth, improving asset quality and stable operations. The company said the year marked resilient demand from small businesses and continuing operational discipline. It said operational discipline and targeted underwriting supported performance across lending cohorts.

Assets under management grew by 27 per cent to Rs 70.44 bn in FY26 from Rs 55.34 bn in FY25, reflecting sustained portfolio expansion. Disbursements rose by 20 per cent to Rs 51.69 bn for the year, while quarter four disbursements increased by 26 per cent quarter on quarter to Rs 16.55 bn. Quarter on quarter momentum in disbursements reflected pipeline conversion and sustained demand.

Asset quality showed steady improvement, with PAR X reducing by 115 basis points between October 2025 and March 2026 and gross non-performing assets declining to 4.77 per cent in quarter four. The one to 90 day past due ratio improved to 1.87 per cent and collection efficiency reached record levels in March, with non-overdue collections at 99.5 per cent and Bucket one collections improving to 62.5 per cent, supported by strong repayment trends in Bihar, Uttar Pradesh and Rajasthan. Month on month improvement in collections assisted reduction in credit costs and enhanced cash flows.

The portfolio is spread across 18 states and three union territories and extends to more than 70 business clusters, which the company said has helped mitigate risk and maintain stability in changing market conditions. The firm noted an average ticket size on disbursement of Rs 0.18 mn and reiterated a focus on steady, responsible growth while continuing to use technology and data to reach more micro-enterprises and support their expansion. Management emphasised continued focus on risk controls and customer support to sustain outcomes.