BAIDFIN - Baid Finserv

📊 NSE: BAIDFIN 🏢 Finance & Investments 📅 Last Updated: 12/13/2025 18:52

💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 11.35% from INR 50.05 Cr in FY22 to INR 55.73 Cr in FY23. Disbursements for the vehicle and MSME segments grew 59% YoY to INR 179 Cr in FY24 compared to INR 112.56 Cr in FY23.

Geographic Revenue Split

The company primarily operates in Rajasthan (core market), with recent expansions into Madhya Pradesh, Gujarat, and Maharashtra (planned for Q2 FY26). Specific percentage split by state is not disclosed.

Profitability Margins

PAT increased 24.5% from INR 10.38 Cr in FY23 to INR 12.92 Cr in FY24. Net Interest Margin (NIM) improved to 10.20% in FY23 from 9.46% in FY22. Q1 FY26 PAT of INR 1.35 Cr represents a 32.35% increase over Q1 FY25 PAT of INR 1.02 Cr.

EBITDA Margin

Interest coverage ratio improved from 1.62x in FY22 to 1.79x in FY23 and reached 2.42x by Q1 FY24, indicating a strengthening ability to service debt from operating profits.

Capital Expenditure

The company planned a significant equity infusion of up to INR 35 Cr in FY26 to support its growth strategy and augment its capital base for onward lending.

Credit Rating & Borrowing

Long-term bank facilities of INR 305 Cr are rated CARE BBB; Positive (reaffirmed Oct 2025), with the outlook revised from Stable due to expected equity infusions and sustained growth.

⚙️ Operational Drivers

Raw Materials

Cost of funds (interest on borrowings) is the primary operational cost, as the company is a financial services provider. Interest expenses are incurred on bank facilities totaling INR 305 Cr.

Import Sources

Not applicable as the company provides financial services within India.

Key Suppliers

The company sources capital from various Banks and Financial Institutions; it had unutilized bank sanction lines of INR 13.84 Cr as of June 30, 2023.

Capacity Expansion

Assets Under Management (AUM) grew to INR 411.18 Cr as of Q1 FY26, up from INR 305 Cr in FY23. The company expanded its branch network and increased staff to 234 employees by March 2025.

Raw Material Costs

Portfolio yields moderated from 18.43% in FY23 to 17.13% in FY24 and further to 16.99% in FY25 due to competitive pressures in the retail lending market.

Manufacturing Efficiency

Collection efficiency stood at 96.11% in FY25, though it slightly moderated to 94.24% in Q1 FY26 due to seasonal or expansion-related factors.

Logistics & Distribution

Operating expenses (Opex/ATA) increased from 4.39% in FY22 to higher levels in FY23 as the company expanded its branch network and headcount.

📈 Strategic Growth

Expected Growth Rate

59%

Growth Strategy

Expansion into new geographies including Maharashtra (Q2 FY26), Madhya Pradesh, and Gujarat. The company is utilizing a Rights Issue to increase its capital base and promoter shareholding (from 36.25% to 45.71%) to fund onward lending in underserved rural areas.

Products & Services

Secured MSME Loans (LAP), Commercial Vehicle Loans (New and Used), Auto Loans, and Insurance products.

Brand Portfolio

Baid Finserv Limited (formerly Baid Leasing and Finance Co. Ltd).

New Products/Services

Expansion of the MSME and Loan Against Property (LAP) portfolio, which is managed by a dedicated third-generation promoter team.

Market Expansion

Targeting underbanked semi-urban and rural regions in Maharashtra by Q2 FY26 to capitalize on funding opportunities.

Market Share & Ranking

Categorized as a Non-Deposit Taking Base Layer NBFC (NBFC-BL) under RBI's Scale Based Regulation.

🌍 External Factors

Industry Trends

The NBFC sector is evolving under RBI's Scale Based Regulation; there is a growing trend of credit mobilization in semi-urban areas where formal banking penetration remains low.

Competitive Landscape

Faces competition from both traditional banks and other NBFCs, which has led to range-bound spreads and a slight uptick in operating expenses.

Competitive Moat

Durable advantage through 33+ years of local market experience in Rajasthan and promoter expertise in valuing used commercial vehicles, which is difficult for larger banks to replicate in rural settings.

Macro Economic Sensitivity

High sensitivity to the rural economy and agricultural cycles, as a significant portion of the borrower base consists of farmers and small rural business owners.

Consumer Behavior

Increased demand for retail and vehicle finance post-COVID-19 has driven the company's recent branch and staff expansion.

Geopolitical Risks

Minimal impact due to localized operations in Indian states.

⚖️ Regulatory & Governance

Industry Regulations

Regulated by RBI as an NBFC-ICC (Investment and Credit Company) and classified as Base Layer (NBFC-BL) since September 2022. Adheres to SARFAESI Act 2002 for asset recovery.

Environmental Compliance

Not applicable for the company's business model.

Taxation Policy Impact

Standard corporate tax rates apply; no specific fiscal incentives mentioned.

Legal Contingencies

The company utilizes Section 13(4) of the SARFAESI Act 2002 for 'Symbolic Possession' of assets in default cases; specific value of pending litigation is not disclosed.