Aye Finance reported a strong second quarter for FY27, with net profit rising to Rs 86.72 crore on revenue of Rs 514.39 crore. However, the auditor flagged a breach in a specific financial covenant related to loan portfolio quality, signaling a potential compliance concern for investors to monitor.
Aye Finance Q2 Net Profit Climbs to Rs 86.72 Crore
Aye Finance recorded a net profit of Rs 86.72 crore for the quarter ended September 30, 2026, marking a significant growth from Rs 34.53 crore in the year-ago period.
Reader Takeaway: Strong operational growth is tempered by an auditor-flagged covenant breach requiring investor caution regarding debt compliance.
What just happened
Aye Finance released its financial results for the quarter ended September 30, 2026. Revenue from operations reached Rs 514.39 crore, up from Rs 477.37 crore in the previous quarter. The company’s net profit for the half-year ending September 30, 2026, stood at Rs 161.22 crore on total revenue of Rs 991.76 crore.
Why this matters
While the company continues to show a positive growth trajectory in both revenue and profitability, the Independent Auditor’s Report flagged a breach of a financial covenant. Specifically, the company breached the (PAR 90 + Write-off)/Gross Loan Portfolio covenant related to ISIN INE501X07588. For an NBFC, maintaining these covenants is essential to satisfy lenders and maintain a healthy debt profile.
Risks to watch
Investors should focus on management’s remedial actions regarding the covenant breach. Governance and compliance failures can impact borrowing costs and creditor relations. Shareholders should look for updates in subsequent filings regarding whether the company has secured a waiver or rectified the underlying metric.
What to track next
Watch for management commentary or further disclosure regarding the specific steps being taken to address the covenant breach and the potential impact on future debt instruments.