💰 Financial Performance

Revenue Growth by Segment

Consolidated total income grew 38% YoY to INR 7 Cr in Q2 FY26 and 45% YoY to INR 14 Cr in H1 FY26. Gold loan syndication disbursements increased 43.75% QoQ from INR 80 Cr to INR 115 Cr in Q2 FY26. EWA disbursements are growing at 15-20% MoM, reaching INR 6 Cr per month.

Geographic Revenue Split

The company operates in 200+ cities across India, though specific percentage splits per region are not disclosed. Operations are headquartered in Chandigarh.

Profitability Margins

Net Profit Margin increased 17.07% to reach 48% in FY25. Operating Profit Margin improved 15.94% to 80% in FY25 due to revenue growth outpacing expenses. RoMA stood at 7.1% in FY24 and improved to an annualized 10.3% in H1 FY25.

EBITDA Margin

FY25 EBITDA was INR 15 Cr on revenue of INR 22 Cr, representing a 68.18% margin. This high margin is driven by the asset-light syndication model which requires minimal capital outlay per transaction.

Capital Expenditure

The company raised INR 30 Cr of equity in FY24 and an additional INR 10 Cr via share warrants in FY25 to support its lending book. Planned CAPEX is focused on digital infrastructure, including the 'Emerald EWA' mobile app launch.

Credit Rating & Borrowing

CRISIL assigned a 'CRISIL BB+/Stable' rating to INR 30 Cr of bank facilities in October 2024. Borrowing costs are described as 'medium to high,' though specific interest rate percentages are not disclosed.

⚙️ Operational Drivers

Raw Materials

Capital (Debt and Equity) serves as the primary 'raw material,' with debt-to-equity at 0.20x as of FY25. Cost of funds is the critical input cost for the 99% MSME-focused loan book.

Import Sources

Capital is sourced domestically from 14 lenders and 40+ financial partners, including NAV Capital VCC and Rainpay India.

Key Suppliers

Key financial partners include Fullerton India (top DSA partner), NAV Capital VCC's Emerging Star Fund, and Investi Global Opportunity Fund (Mauritius).

Capacity Expansion

Current loan portfolio stood at INR 65.8 Cr as of September 30, 2024, up from INR 55 Cr in March 2024. The company aims to scale operations to over INR 150 Cr to trigger a credit rating upgrade.

Raw Material Costs

Interest expenses are the primary cost; Interest Coverage Ratio improved 12.04% to 5.49 in FY25. Procurement strategy involves raising equity at regular intervals to maintain low gearing (0.3x).

Manufacturing Efficiency

The asset-light model achieved a 105.28% increase in Debtors Turnover Ratio (to 12.05) in FY25, reflecting highly efficient collection cycles and timely payments.

Logistics & Distribution

Distribution is handled digitally via the 'Emerald EWA' app and a network of 145 onboarded corporate partners for wage access products.

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

The company targets an 8x to 10x growth in PAT by FY27 by scaling its Earned Wage Access (EWA) platform, expanding gold loan syndication (currently INR 115 Cr/quarter), and leveraging its 40+ financial partnerships to maintain an asset-light, fee-based revenue model.

Products & Services

MSME loans, personal loans, home loans, gold loan syndication, and Earned Wage Access (EWA) salary advances.

Brand Portfolio

Emerald Finance, Shubhbank.com, Emerald EWA (Mobile App).

New Products/Services

The 'Emerald EWA' mobile app launched on Google Play Store is expected to drive a 15-20% MoM growth in salary advance disbursements.

Market Expansion

Expansion into 200+ cities with a focus on onboarding more corporate employers (145 currently) to provide EWA services to their employees.

Market Share & Ranking

Positioned as a niche player in the EWA space with low competition and 9+ years of operational experience.

Strategic Alliances

Partnerships with 14 lenders and 40+ financial institutions; strategic investment from NAV Capital VCC and Rainpay India.

🌍 External Factors

Industry Trends

The industry is shifting toward 'financial liberalization' and digital lending. Emerald is positioning itself as a fintech-led NBFC to capture the untapped EWA market and rising formal credit penetration in India.

Competitive Landscape

Competes with traditional NBFCs and emerging fintechs, but maintains a niche in EWA where competition is currently low.

Competitive Moat

Moat is built on a 9-year track record, 650,000 satisfied customers, and a first-mover advantage in the EWA space. This is sustainable due to the high barrier of establishing 145+ corporate employer partnerships.

Macro Economic Sensitivity

Highly sensitive to industrial growth and economic recessions which could impact the repayment capacity of MSME borrowers (99% of the loan book).

Consumer Behavior

Shifting towards digital-first financial products; the launch of the mobile app directly addresses the demand for seamless, on-demand salary access.

Geopolitical Risks

Global uncertainties are listed as a threat that could increase the cost of capital and affect market volatility.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to RBI guidelines for non-deposit taking NBFCs and digital lending norms. Secretarial audit for FY25 confirmed compliance with the Companies Act 2013 and SEBI regulations.

Environmental Compliance

Not applicable for financial services; however, the company spent INR 0.31 Cr on CSR in FY24 and INR 0.30 Cr in H1 FY26, focusing on cancer patients and education.

Taxation Policy Impact

The company provided INR 2.27 Cr for income tax in H1 FY26 and paid over INR 3 Cr in FY24.

Legal Contingencies

The Secretarial Audit Report for the period ended March 31, 2025, reported no major legal non-compliances or pending material litigation.

⚠️ Risk Analysis

Key Uncertainties

Asset quality risk is the primary uncertainty; while NPAs are <0.5%, the lack of portfolio seasoning in the newer EWA segment could lead to future credit costs.

Geographic Concentration Risk

Concentrated in India with a strong presence in 200+ cities; headquarters in Chandigarh suggests a North India focus.

Third Party Dependencies

High dependency on corporate employers for EWA distribution and 14 lenders for debt liquidity.

Technology Obsolescence Risk

Mitigated by the launch of the 'Emerald EWA' app and continuous refinement of the risk management framework to address cyber security and data privacy.

Credit & Counterparty Risk

Credit exposure is primarily to MSMEs (99% of book) and corporate employees (via EWA). Receivables quality is currently high with a 105% improvement in turnover ratio.