Ashika Credit - Ashika Credit

📊 BSE: 543766 🏢 Non Banking Financial Company (NBFC) 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company's principal business is Investment and Financing. Specific segment-wise percentage growth is not disclosed, but the company transitioned from no cash loss in FY24 to a significant cash loss of INR 19.13 Cr in FY25, indicating a sharp decline in operational profitability.

Geographic Revenue Split

Not explicitly disclosed in percentage terms; however, the company operates through its registered office in Kolkata and corporate offices in Mumbai (Worli and Nariman Point), suggesting a focus on major Indian financial hubs.

Profitability Margins

Profitability turned negative in FY25 with a cash loss of INR 1,912.83 lakhs (INR 19.13 Cr). This is a significant downturn compared to the immediately preceding financial year (FY24) where no cash losses were incurred.

EBITDA Margin

Core profitability is under pressure as evidenced by the INR 19.13 Cr cash loss in FY25. The margin has dropped from positive/breakeven in FY24 to negative in FY25 due to investment and financing activity outcomes.

Capital Expenditure

The company maintains records for Property, Plant, and Equipment, but specific historical or planned CAPEX in INR Cr for expansion is not disclosed in the provided documents.

Credit Rating & Borrowing

The company has sanctioned working capital limits exceeding INR 5 Cr from financial institutions secured against current assets. It has not sought similar limits exceeding INR 5 Cr from banks during the year.

⚙️ Operational Drivers

Raw Materials

As an NBFC, the primary 'raw material' is capital/cost of funds. Interest expense on borrowings (limits > INR 5 Cr) represents the core operational cost rather than physical materials.

Import Sources

Not applicable for a financial services company; capital is sourced from domestic financial institutions and internal accruals.

Key Suppliers

Suppliers are financial institutions providing working capital limits exceeding INR 5 Cr. Specific names of these institutions are not disclosed.

Capacity Expansion

Not applicable in manufacturing terms. However, the company is undergoing a major structural expansion via the amalgamation of Ashika Commodities & Derivatives Pvt Ltd and Ashika Global Securities Pvt Ltd into Ashika Credit Capital Ltd to increase its financial scale.

Raw Material Costs

Not applicable. Financial costs are driven by interest rates on the > INR 5 Cr borrowing limit and the cost of maintaining regulatory capital as per RBI norms.

Manufacturing Efficiency

Not applicable. Operational efficiency is measured by the manual calculation and monitoring of ECL (Expected Credit Loss) provisions for the loan sample.

Logistics & Distribution

Not applicable; distribution is handled through financial service offices in Kolkata and Mumbai.

📈 Strategic Growth

Growth Strategy

The primary growth driver is a court-convened scheme of arrangement to amalgamate Ashika Commodities & Derivatives Private Limited and Ashika Global Securities Private Limited into Ashika Credit Capital Limited. This consolidation is intended to streamline the group's financial services, increase the asset base, and leverage synergies across securities and credit businesses.

Products & Services

Loans, financing services, and investment products provided under its NBFC license.

Brand Portfolio

Ashika, Ashika Group.

New Products/Services

Post-merger, the company will likely integrate commodities and securities services from the amalgamated entities, though specific revenue contribution percentages for these new lines are not yet disclosed.

Market Expansion

Expansion is focused on consolidating group entities to create a larger, more diversified financial services platform under the listed entity (ACCL).

Market Share & Ranking

Not disclosed.

Strategic Alliances

The company is executing a merger with group companies Ashika Commodities & Derivatives Pvt Ltd and Ashika Global Securities Pvt Ltd.

🌍 External Factors

Industry Trends

The NBFC industry is shifting toward tighter regulatory oversight under the RBI's Scale Based Regulation (SBR) 2023. The company is positioning itself for this by consolidating group entities to achieve better scale and regulatory compliance.

Competitive Landscape

Competes with other mid-sized NBFCs and fintech lenders in the investment and financing space.

Competitive Moat

The moat is based on the 'Ashika' brand and the group's long-standing presence in financial services. Sustainability depends on the successful integration of the amalgamated entities to drive cost efficiencies and a larger balance sheet.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and credit market liquidity. A downturn in the Indian economy would increase Stage 3 assets/NPAs, impacting the loan book.

Consumer Behavior

Shift toward consolidated financial service providers who offer credit, securities, and commodity trading under one umbrella.

Geopolitical Risks

Low direct impact, but indirect impact through domestic market volatility affecting the value of the company's investment portfolio.

⚖️ Regulatory & Governance

Industry Regulations

Regulated by RBI under the Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Direction, 2023. Must comply with IRACP norms for asset classification.

Environmental Compliance

Minimal impact as a financial services provider; ESG focus is primarily on corporate governance and code of conduct compliance.

Taxation Policy Impact

Subject to standard Indian corporate tax rates; deferred tax assets/liabilities are managed under Ind AS.

Legal Contingencies

Pending NCLT matter: Company Application (CAA) No. 196/KB/2025 regarding the scheme of amalgamation. The meeting for shareholders was held on January 9, 2026, following the NCLT order dated November 14, 2025.

⚠️ Risk Analysis

Key Uncertainties

1. Asset Quality: Risk of material misstatement in ECL provisions for loans. 2. Merger Integration: Risks associated with the successful amalgamation of two group companies into ACCL.