Aye Finance's 49.41% margin trails sector median by 14.73 points
Standalone Q2 profit was reduced by Rs 144.68 cr of interest expense, while the 25.11% tax rate shaped the conversion from pre-tax to net profit.
Filed 21 Oct 2026, 11:47 IST · Aye Finance Ltd (AYE)
Key takeaways
- Aye Finance's standalone operating margin was 49.41%, 15.09 percentage points below the 64.5% median for 21 Financial Services peers.
- Interest expense of Rs 144.68 cr was the largest charge below operating profit of Rs 254.18 cr, leaving profit before tax at Rs 115.8 cr.
- The stock fell 5.54% on 22 October, with trading volume at 1.48 times the reference level.
Price around the results
Operating margin sits below the sector midpoint
Aye Finance reported standalone revenue of Rs 514.39 cr and operating profit of Rs 254.18 cr, translating to a 49.41% operating margin. That margin was 15.09 percentage points below the 64.5% median among 21 Financial Services companies that had reported the quarter. The company ranked sixth from the bottom on this measure.
Interest was the main charge below operations
Interest expense of Rs 144.68 cr was the largest listed charge below operating profit, while depreciation was Rs 6.43 cr. The resulting profit before tax was Rs 115.8 cr, followed by tax at a 25.11% rate and net profit of Rs 86.72 cr. Other income of Rs 12.73 cr was a non-operating component of reported profit.
The market reaction was sharply negative
The stock fell 5.54% on 22 October, including a 0.97% opening gap and 5.00% relative underperformance. Volume was 1.48 times the reference level, indicating greater activity alongside the decline. There is no past-results reaction benchmark here to establish whether the move was typical for the stock.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹514 cr |
| Other income | ₹13 cr |
| Expenses | ₹260 cr |
| Operating profit | ₹254 cr |
| Operating margin (%) | 49.41% |
| Interest | ₹145 cr |
| Depreciation | ₹6 cr |
| Profit before tax | ₹116 cr |
| Tax | ₹29 cr |
| Net profit | ₹87 cr |
| EPS (₹) | ₹3.51 |
Operating margin of 49.41% compares with a Financial Services sector median of 64.50% across 21 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.54% | -5.00% |
Volume on the results session was 1.48× its 20-day average.
What to watch
- Whether standalone operating margin remains near 49.41% or narrows its 15.09-percentage-point gap to the sector median.
- Whether interest expense stays near Rs 144.68 cr against operating profit of Rs 254.18 cr.
- Whether other income remains at Rs 12.73 cr and the tax rate near 25.11%.