Top three institutional investors like Elevation Capital, LGT Capital, and Alpha Wave India hold 41% of Aye Finance. The company has a wide loan spread across India and shows improved net interest margin. It has a strong capital adequacy ratio supporting growth. However, its stock trades at a discount due to higher asset-quality stress and lower return ratios. Aye Finance, founded in 1993 and renamed in 2014, offers small business loans to MSMEs. As of September 2025, it managed assets worth ₹6,027 crore across 568 branches in 18 states and three union territories. Its focus is on micro-businesses with ₹2–10 crore turnover, mostly in semi-urban areas. About 91% of customers own their business property, and 94% have five or fewer employees. No state accounts for over 16% of its assets. Loan disbursements grew 34.9% annually to ₹4,291 crore in FY25 from ₹2,357 crore in FY23. Risks include rising non-performing assets (NPA), sensitivity to interest rates, and competition from other NBFCs. Financially, its net interest income jumped 52.6% to ₹858 crore in FY25 from ₹368 crore in FY23. Net profit rose from ₹40 crore to ₹175 crore in the same period. Capital adequacy stood strong at 35% in FY25, up from 31% in FY23. Net interest margin improved to 15%, within peer range of 10-16%. Gross NPA increased to 4.2% in FY25 from 2.5% in FY23, higher than peers’ 1.8-2.7%. Return on equity improved to 12% but remains at the lower end of the 11.6-18.7% peer range. Aye Finance’s price-to-book ratio is 1.3, below peers like MAS Financial (2.05), SBFC Finance (3), and Fedbank Financial (1.9). Experts say the issue suits long-term retail investors willing to accept higher risk for growth.