Aye Finance Rating Upgraded to [ICRA]A+ (Stable)

Aye Finance has received an upgrade in its credit rating from ICRA to [ICRA]A+ with a Stable Outlook, moving up from [ICRA]A. This follows a similar upgrade by India Ratings & Research in June 2026. The upgrade is attributed to the company's stronger capitalization, with a capital adequacy ratio of 41% and net worth of INR 2695 Crores as of September 2026. Asset quality has improved, with Gross Stage 3 assets declining to 4.2%. The Assets Under Management (AUM) grew 26% year-on-year to INR 7,597 Crore as of September 30, 2026. Profitability also increased, with H1 FY27 profit after tax reaching approximately INR 161 crore, driven by lower credit costs and tighter operating expenses. The company expects the higher rating to improve access to diversified and competitively priced funding.