💰 Financial Performance

Revenue Growth by Segment

Total Income for Q1 FY26 was INR 7.20 Cr. While specific segment growth percentages are not provided, the company is shifting from BC Co-Lending to Warehousing Term Loans, which now drive the top-line expansion.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates as a digital-first NBFC based in Mumbai, Maharashtra.

Profitability Margins

Net Profit Margin stood at 32.08% for Q1 FY26. Profit Before Tax (PBT) grew by 124% quarter-on-quarter to INR 2.94 Cr.

EBITDA Margin

Not explicitly stated as EBITDA, but PBT Margin is approximately 40.8% (INR 2.94 Cr on INR 7.20 Cr income). ROE growth was 115% Q/Q.

Capital Expenditure

The company sold its previous office property for INR 2.00 Cr in Q1 FY26 to redeploy capital into its core lending business. Total Property, Plant and Equipment stood at INR 3.88 Cr as of March 31, 2025.

Credit Rating & Borrowing

Blended cost of capital is sub 12%, with specific borrowing costs ranging between 10% and 14% depending on the source.

⚙️ Operational Drivers

Raw Materials

Capital (Debt and Equity) represents 100% of the 'raw material' for lending operations. Cost of capital is 10-14%.

Import Sources

Not applicable as the primary input is financial capital sourced from Indian debt and equity markets.

Key Suppliers

Not applicable; the company sources capital from banks and financial institutions (unnamed in documents).

Capacity Expansion

Current Loan Book (AUM) was INR 82.20 Cr as of March 31, 2025, up from INR 47.13 Cr in the previous year, representing a 74.4% expansion in lending capacity.

Raw Material Costs

Cost of capital is sub 12% (blended). Procurement strategy involves maintaining a low debt-to-equity ratio and utilizing internal accruals/property sale proceeds (INR 2 Cr) for lending.

Manufacturing Efficiency

Income per employee is INR 0.28 Cr, reflecting high productivity through automated ML-driven underwriting and lean risk teams.

Logistics & Distribution

Distribution is handled digitally through fintech partner APIs; costs are integrated into the partnership unit economics.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Shifting strategy to partner with mature, profitable fintechs (60-70% of industry now profitable) rather than early-stage ones. Transitioning to 'Warehousing Term Loans' which allow for deeper due diligence and higher XIRR (16-17%+).

Products & Services

Digital loans, Warehousing Term Loans, and technology-enabled lending infrastructure (Sonic).

Brand Portfolio

Apollo Finvest, Sonic (Proprietary Technology Platform).

New Products/Services

Enhanced 'Warehousing Term Loan' structure with integrated escrow controls, expected to be the primary driver of future AUM growth.

Market Expansion

Focusing on deepening distribution across the 'best' fintechs and NBFCs in India; projected AUM split is 70% Retail and 30% Wholesale.

Strategic Alliances

Partnerships with various NBFCs and Fintechs (e.g., historical mentions of Zest Money, LendingCart as industry examples, though current partners are selected based on profitability).

🌍 External Factors

Industry Trends

The fintech industry is maturing, with 60-70% of companies now profitable compared to <5% two years ago. This allows Apollo to shift from transactional partnerships to stable, relationship-based term lending.

Competitive Landscape

Competes with other NBFCs and banks providing wholesale capital to fintechs, but differentiates through deep tech integration and 'safety first' underwriting.

Competitive Moat

Moat is built on 8 years of quantitative data in digital lending and the 'Sonic' tech stack which provides real-time visibility into partner portfolios. This is sustainable because it creates high switching costs for partners integrated into Apollo's escrow and API systems.

Macro Economic Sensitivity

Highly sensitive to RBI monetary policy and digital lending guidelines. Changes in interest rates impact the 10-14% borrowing cost.

Consumer Behavior

Shift toward digital-first credit consumption, supporting the 70% retail focus of the projected AUM.

Geopolitical Risks

Minimal direct impact; primary risks are domestic regulatory shifts.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI NBFC regulations and Digital Lending Guidelines. The company monitors partner debt-to-equity ratios (capping at 2.5x) to ensure regulatory resilience.

Environmental Compliance

Not applicable for a digital financial services firm.

Taxation Policy Impact

Standard Indian corporate tax rates apply. Q1 FY26 PBT was INR 2.94 Cr; Net Profit was not explicitly stated but margin is 32.08%.

Legal Contingencies

Pending litigations are disclosed in Note 39(B) of the Ind AS financial statements; specific case values in INR were not provided in the summary documents.

⚠️ Risk Analysis

Key Uncertainties

Regulatory volatility in the fintech space (high impact), partner portfolio deterioration (mitigated by 20-30% FLDG), and liquidity risks at the partner NBFC level.

Geographic Concentration Risk

100% of operations and revenue are concentrated in the Indian market.

Third Party Dependencies

High dependency on fintech partners for loan origination and first-mile collections.

Technology Obsolescence Risk

Low risk due to in-house development of 'Sonic' and API-first architecture, though continuous R&D is required to maintain the edge over traditional lenders.

Credit & Counterparty Risk

Credit exposure is primarily to retail borrowers (70%) and wholesale partners (30%). Receivables quality is managed through real-time tech-driven collection escrows.