Aye Finance's Q2 profit rises 151% to ₹86.7 crore; one debenture covenant breached

What happened

• Aye Finance reported a net profit of ₹86.72 crore for the September 2026 quarter against ₹34.53 crore a year earlier, up 151.13%, Free Press Journal reported. Kotak Neo called it the highest quarterly profit the company has posted. Free Press Journal's report is timed at 12:08 PM on Wednesday.
• Revenue from operations rose 18.28% to ₹514.39 crore from ₹434.89 crore. First-half profit was ₹161.22 crore against ₹65.12 crore, up 147.56%.
• Kotak Neo gave return on equity as 13.1% against 8.1% a year earlier, net interest margin as 15.6%, net worth as ₹2,695 crore and the operating expense ratio as 8.6% against 9.6%. It also said credit costs fell for a seventh quarter in a row.
• Free Press Journal reported that the company also disclosed a breach of a financial covenant on one of its debentures. The covenant is the ratio of loans 90 or more days overdue plus write-offs to the gross loan portfolio. The report did not give the threshold.
• The shares closed at ₹139.60 on Kite data, down 2.38% from ₹143.01.

Why it matters

Good to know: A financial covenant is a condition in a loan or bond agreement, such as a limit on bad loans. What follows a breach depends on the terms of the agreement with the lenders or bondholders.

Key facts

Net profit

₹86.72 crore (₹34.53 crore a year earlier), up 151.13%

Revenue from operations

₹514.39 crore, up 18.28%

Return on equity

13.1% (8.1% a year earlier), per Kotak Neo

Covenant

Breach disclosed on one debenture; threshold not given

Read the source

• Aye Finance Q2 FY27 Net Profit Surges 151% To Rs 86.72 Crore, Revenue From Operations Rises 18% To Rs 514.39 CroreFree Press Journal
• Aye Finance shares in focus after Q2 FY27 resultsKotak Neo