💰 Financial Performance

Revenue Growth by Segment

Total income grew 5.66% YoY from INR 103.46 Lakhs in FY24 to INR 109.32 Lakhs in FY25. Segment-specific growth was not disclosed in available documents.

Profitability Margins

Net profitability was significantly impacted as EPS declined 71.3% YoY from INR 1.29 in FY24 to INR 0.37 in FY25, despite the 5.66% growth in total income.

EBITDA Margin

Not disclosed in available documents, though the sharp 71.3% drop in EPS suggests a contraction in core profitability margins.

Credit Rating & Borrowing

During FY25, the company did not take any loans from banks or financial institutions, resulting in zero bank borrowing costs for the period.

⚙️ Operational Drivers

Raw Materials

Capital (Funds) is the primary raw material for the company's lending operations, representing the core input for generating interest income.

Import Sources

Not applicable as the company is a financial services provider (NBFC).

Key Suppliers

Not applicable; however, the company relies on promoter equity and potentially bank financing for its capital base.

Capacity Expansion

Not applicable for an NBFC; however, growth is tied to the expansion of the loan book and investment portfolio.

Raw Material Costs

Cost of funds is the primary operational cost. NBFCs typically face higher costs of funds than banks due to high reliance on bank financing and promoter equity, which impacts the interest spreads on loans.

Manufacturing Efficiency

Not applicable for an NBFC.

Logistics & Distribution

Not applicable for an NBFC.

📈 Strategic Growth

Growth Strategy

Growth will be achieved through the principal business of providing loans and making strategic investments under Section 186 of the Companies Act and RBI regulations. This strategy is vital as revenue is directly linked to the volume and interest spread of the loan portfolio.

Products & Services

Loans and financial investments provided under RBI norms for Non-Banking Financial Companies.

Brand Portfolio

Trustedge Capital Limited (formerly known as Adinath Exim Resources Limited).

🌍 External Factors

Industry Trends

The NBFC sector is evolving with a focus on improved risk assessment and capital charge computation amidst a macro environment of increasing yields and tighter credit.

Competitive Landscape

The company competes with traditional banks (which have lower costs of funds) and other NBFCs in the lending and investment space.

Competitive Moat

Moat is sustained through strict adherence to RBI regulatory frameworks and an effective internal control system that safeguards assets and ensures transaction integrity.

Macro Economic Sensitivity

Highly sensitive to global economic growth, inflation sentiment, and interest rate cycles which affect borrowing demand and capital costs.

Consumer Behavior

A shift in inflation sentiment is expected to lead to a slowdown in hiring and expenditure in the business sector, potentially lowering loan demand.

Geopolitical Risks

Persistent global supply disruptions and shifts in inflation sentiment are noted as primary concerns that could restrain economic activity.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Reserve Bank of India Act, 1934 and the Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016.

Legal Contingencies

The company has disclosed pending litigations as of March 31, 2025, in Note 23 of the financial statements; however, specific case values in INR were not provided in the available documents.

⚠️ Risk Analysis

Key Uncertainties

Exposure to economic cycles, market risk, and credit risks that could impact the ability to achieve desired financial outcomes.

Third Party Dependencies

Reliance on the financial system for future capital requirements and liquidity.

Technology Obsolescence Risk

The company has mitigated digital risks by using accounting software with an audit trail (edit log) facility to ensure the accuracy and integrity of financial records.

Credit & Counterparty Risk

The company focuses on improving sensitivity to risk assessment and methods of computation for risk weights and capital charges to manage counterparty exposure.