Ceejay Finance (CEEJAY) Q2 FY27 Profit Dives 41% as Operating Costs Soar
The NBFC's profit fell sharply despite stable revenue, as total expenses jumped 28% year-on-year, squeezing its net margin below 20%.
Ceejay Finance reported a 41% drop in Q2 FY27 net profit to ₹1.29 crore. While revenue held steady, a sharp 28% rise in total expenses, driven by higher other costs and an impairment charge, severely compressed margins.
For a small NBFC like Ceejay Finance, stability in its core lending income is the foundation. The September quarter tested that stability as a surge in operating costs eroded nearly all profitability, turning a flat revenue line into a steep profit decline.
The numbers show a business under cost pressure. Revenue was nearly unchanged at ₹6.62 crore, but net profit fell 41% year-on-year to ₹1.29 crore. Sequentially, a small revenue gain was wiped out by a 36% profit drop.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 6.62 | 6.11 |
| Profit (₹ Cr) | 1.29 | 2.01 |
| Net Profit Margin | 19.5% | 32.8% |
Where the profit vanished
A report from scanx.trade details the cost surge. Total expenses rose 28% year-on-year to ₹4.78 crore. This was driven by a 47% jump in 'Other expenses' and a shift to a positive impairment charge, compared to a small reversal benefit last year. With interest income flat, the margin compression was severe.
The loan book, a key driver for future income, contracted slightly to ₹117.93 crore from ₹119.47 crore in March. This suggests repayments outpaced new disbursements, a cautious stance that may limit near-term growth.
A silent outlook in a noisy market
Management provided no forward guidance on loan growth or margins, according to an analysis by StockFin.ai. This silence comes amid a robust vehicle financing boom in smaller towns, where NBFCs hold nearly 75% of two-wheeler loans, as noted in an Autocar Professional report.
The company trades at a P/E of 7.4, a 63% discount to the industry average. This deep value pricing reflects the market's view of its stagnant scale and recent profitability shock.
Key Points
- Net profit fell 41% year-on-year to ₹1.29 crore as total expenses surged 28%.
- The net profit margin contracted sharply to 19.5%, down from 32.7% in Q2 FY26.
- The loan book shrank slightly, indicating cautious lending or slower disbursements.
- Management offered no specific guidance for the rest of the fiscal year.
Hexa Perspective
The quarter reveals a core tension: Ceejay Finance operates in a high-demand segment but cannot translate that into profit growth. The cost surge appears operational, not linked to loan book expansion, which raises questions about efficiency.
For the squeeze to ease, the company must either reignite loan growth to leverage its fixed cost base or demonstrate sustained cost control. Until one of those paths becomes clear, the stock's deep valuation discount is likely to persist, pricing in the execution risk.
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