💰 Financial Performance

Revenue Growth by Segment

Total revenue declined by 87.97% YoY, falling from INR 7,423.01 Lacs in the previous year to INR 892.68 Lacs in FY 2024-25. Segment-specific growth percentages for trading vs. lending are not explicitly broken down in the provided text.

Geographic Revenue Split

Not disclosed in available documents; however, operations are focused on the Indian economy and financial sector.

Profitability Margins

Net loss margin improved significantly as the net loss narrowed from INR 4,721.32 Lacs to INR 68.41 Lacs, a 98.55% reduction in loss. Profit before exceptional items and tax stood at INR 126.30 Lacs (14.15% of revenue) compared to INR 103.93 Lacs (1.40% of revenue) in the prior year.

EBITDA Margin

Core profitability before exceptional items improved by 21.52% YoY to INR 1.26 Cr. The margin expansion is primarily due to the drastic reduction in total revenue while maintaining a stable operating profit base.

Capital Expenditure

The company made a significant investment of INR 189.10 Cr in an associate company, Hologram Holding Pvt. Ltd., representing a 33.22% stake as of March 31, 2025.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company maintains a provision of INR 0.50 Cr for standard assets and INR 47.71 Cr for NPAs.

⚙️ Operational Drivers

Raw Materials

Not applicable as the company operates in the financial services sector. Primary 'inputs' are capital and financial instruments.

Import Sources

Not applicable for financial services.

Key Suppliers

Not applicable; however, the company utilizes Registrar and Share Transfer services from Skyline Financial Services Pvt. Ltd.

Capacity Expansion

Not applicable for NBFC operations; however, the company is diversifying into unsecured personal loans and corporate loans to expand its balance sheet reach.

Raw Material Costs

Not applicable; operational costs are driven by financial provisions and employee expenses.

Manufacturing Efficiency

Not applicable; the company focuses on 'lowest balance sheet risk' through third-party product distributions and 'highest balance sheet risk' through unsecured lending.

Logistics & Distribution

Not applicable; distribution is focused on financial products and services.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to achieve growth by leveraging cutting-edge technologies like AI, Machine Learning, and Blockchain to improve financial inclusion. Strategy includes diversifying revenue streams across multiple verticals, ranging from low-risk third-party product distribution to high-risk unsecured personal and corporate loans.

Products & Services

Unsecured personal loans, corporate loans, third-party financial product distribution, and share trading services.

Brand Portfolio

Sunshine Capital Limited.

New Products/Services

Focus on originating unsecured personal loans and corporate loans as part of a diversification strategy into higher-risk, higher-return balance sheet activities.

Market Expansion

Targeting greater penetration in the Indian debt market through increased securitization and selling new financial products.

Strategic Alliances

Holds a 33.22% stake in Hologram Holding Pvt. Ltd. with an investment value of INR 189.10 Cr.

🌍 External Factors

Industry Trends

The NBFC sector is evolving through digital transformation (AI/ML/Blockchain). NBFCs are playing a pivotal role in powering India's economic growth by fostering excellence in the financial ecosystem and increasing financial inclusion.

Competitive Landscape

Faces increased competition in both local and overseas financial markets, which may impact interest spreads and client acquisition costs.

Competitive Moat

Moat is built on a diversified revenue stream across multiple financial verticals and the adoption of technology for operational efficiency. Sustainability depends on maintaining regulatory compliance and managing credit risk in unsecured portfolios.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and global fund flows; any global economic event can have a direct or indirect impact on the company's financial service operations.

Consumer Behavior

Increasing income levels in India are driving greater penetration and demand for diversified financial products.

Geopolitical Risks

Global economic developments affect fund flows into the Indian financial sector, impacting the company's ability to scale its investment and lending arms.

⚖️ Regulatory & Governance

Industry Regulations

Operates under NBFC regulations; required to maintain specific disclosures for NPAs, related party transactions, and capital adequacy as per the Companies Act 2013 and SEBI (LODR) Regulations 2015.

Environmental Compliance

Not disclosed; the company mentions 'Environment responsibility' as a pillar of its corporate governance philosophy.

Taxation Policy Impact

Provision for income tax was INR 0.00 in the current year compared to INR 0.16 Cr in the previous year.

Legal Contingencies

Not disclosed in available documents; however, the company confirms no penalties or strictures were imposed by regulators during the period.

⚠️ Risk Analysis

Key Uncertainties

Credit risk is a major uncertainty, evidenced by INR 47.71 Cr in Gross NPAs. Market risk from interest rate and exchange rate volatility could impact the valuation of the INR 189.10 Cr investment portfolio.

Geographic Concentration Risk

Primarily concentrated in the Indian market, specifically through its New Delhi registered office.

Third Party Dependencies

Dependent on Registrar and Share Transfer Agents (Skyline Financial Services) for shareholder services.

Technology Obsolescence Risk

Risk of falling behind in the rapidly evolving fintech space; mitigated by the stated focus on AI, ML, and Big Data analytics.

Credit & Counterparty Risk

Significant exposure to related parties, including loans of INR 22.23 Cr to Babita Jain and INR 10.54 Cr to Virendra Jain (relatives of KMP).