FINKURVE - Finkurve Fin.

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

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 56.02% YoY to INR 140.48 Cr in FY25. The portfolio is heavily weighted toward Gold Loans, which increased from 88% of the mix in March 2025 to 91% by September 2025. Personal loans and SME loans saw their shares decline to 7% and 2% respectively during the same period.

Geographic Revenue Split

Not disclosed in available documents; however, the company is noted as a single-state NBFC facing 621 compliance requirements specific to its operational structure.

Profitability Margins

Profit for FY25 was INR 17.41 Cr, an 8.31% increase YoY. Return on Managed Assets (RoMA) stood at 4.5% for FY25 but moderated to 3.6% (annualized) in H1 FY26 as the company entered a high-growth phase with elevated operating expenses.

EBITDA Margin

Not explicitly stated as EBITDA, but Profit Before Tax (PBT) grew 11.31% YoY to INR 23.62 Cr in FY25. Q1 FY26 PBT was INR 6.83 Cr, up 15.88% YoY, reflecting steady core profitability despite rising finance costs which jumped to INR 7.08 Cr in Q1 FY26 from INR 2.49 Cr in Q1 FY25.

Capital Expenditure

Not disclosed in traditional industrial terms, but the company infused INR 111.5 Cr of equity in Q1 FY26, raising net worth from INR 206 Cr (March 2025) to INR 329 Cr (September 2025) to fund loan book expansion.

Credit Rating & Borrowing

CRISIL BBB/Stable rating reaffirmed in December 2025. Borrowings totaled INR 375 Cr as of September 2025, with a resource mix of Term Loans (41%), Inter-corporate deposits (31%), NCDs (21%), and Cash Credit (7%).

⚙️ Operational Drivers

Raw Materials

Debt Capital/Funding (Term Loans 41%, ICDs 31%, NCDs 21%, Cash Credit 7%)

Import Sources

Domestic financial markets and institutional lenders within India.

Key Suppliers

Paul Merchants Finance Private Limited, Anand Rathi Global Finance Limited, STCI Finance Limited, and AU Small Finance Bank Limited.

Capacity Expansion

Current network of 92 branches as of September 30, 2025, with plans to further increase branch count in the near-to-medium term to support the target of a INR 10,000 Cr loan book by 2029.

Raw Material Costs

Finance costs as a percentage of total income rose to 17.6% in Q1 FY26 (INR 7.08 Cr) from 8.7% in Q1 FY25 (INR 2.49 Cr), driven by increased borrowing to support a 106% annualized growth in AUM.

Manufacturing Efficiency

AUM per branch and employee productivity are key; AUM grew to INR 671 Cr by September 2025, a 69% growth during fiscal 2025.

Logistics & Distribution

Distribution is driven through 92 physical branches and digital partnerships like 'Augmont Gold For All'.

📈 Strategic Growth

Expected Growth Rate

106%

Growth Strategy

The company aims to reach a INR 10,000 Cr loan book by 2029 by expanding its branch network, leveraging co-lending partnerships (e.g., RBL Bank), and focusing on the gold loan sector. Growth is supported by a recent INR 111.5 Cr equity infusion and a shift toward a 91% secured gold loan portfolio.

Products & Services

Gold Loans, Personal Loans, and SME Loans.

Brand Portfolio

Arvog, Augmont Gold For All (Partner Brand).

New Products/Services

Co-lending of gold loans with RBL Bank and digital gold loan services via the Augmont partnership are expected to drive off-book AUM to INR 2,700 Cr by 2029.

Market Expansion

Expansion of the 92-branch network into underserved regions to capture last-mile credit demand in the gold loan sector.

Market Share & Ranking

Small scale relative to the overall industry, but showing rapid growth with disbursements reaching INR 1,606 Cr in FY25.

Strategic Alliances

Partnerships with RBL Bank for co-lending and 'Augmont Gold For All' for retail gold loan sourcing.

🌍 External Factors

Industry Trends

The NBFC sector is seeing a 16-18% expansion in retail loans, but regulatory tightening on unsecured segments is pushing players like Finkurve to prioritize secured gold loans (now 91% of their book).

Competitive Landscape

Competes with large gold loan NBFCs and banks; Finkurve differentiates through agility, digital partnerships, and a co-lending model.

Competitive Moat

Moat is built on a strong promoter profile (Augmont connection) and an experienced leadership team including ex-bank CEOs. This provides superior sourcing and credit underwriting capabilities in the gold loan niche.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth (projected at 6.6% for FY25) which drives credit demand, and interest rate cycles which affect borrowing costs.

Consumer Behavior

Increasing consumer acceptance of gold loans as a quick liquidity tool rather than a last resort, supporting the 127% growth in disbursements in FY25.

Geopolitical Risks

Minimal direct impact, though global gold price shifts influenced by geopolitics affect the value of the primary collateral (91% of AUM).

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI's Revised PCA Framework, gold loan guidelines, and PMLA. Compliance burden includes 621 requirements and 35+ registrations for single-state NBFCs.

Environmental Compliance

Not disclosed; low impact for NBFC operations.

Taxation Policy Impact

Effective tax rate of approximately 26.3% in FY25 (INR 6.21 Cr tax on INR 23.62 Cr PBT).

Legal Contingencies

The company certified that there are no material instances of significant fraud or transactions in violation of the Code of Conduct for the year ended March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Regulatory changes (e.g., risk weight hikes) and gold price volatility are primary risks. A significant drop in gold prices could impact the recovery value of 91% of the loan book.