💰 Financial Performance

Revenue Growth by Segment

Revenue from operations decreased by 8.25% YoY, falling from INR 14.12 Cr in FY 2023-24 to INR 12.96 Cr in FY 2024-25. However, the Asset Under Management (AUM) grew significantly by 98.98%, reaching INR 100.99 Cr compared to INR 50.76 Cr in the previous year, indicating a massive expansion in the loan book despite lower immediate revenue recognition.

Geographic Revenue Split

The company is headquartered in Surat, Gujarat, with operations primarily focused on the Indian domestic market. Specific regional percentage splits are not disclosed, but the company operates under a single standalone entity with no subsidiaries or joint ventures.

Profitability Margins

Net Profit Margin improved from 16.17% in FY 2024 to 18.18% in FY 2025. Profit After Tax (PAT) grew by 3.15% YoY to INR 2.36 Cr. The improvement in margins was driven by a sharp reduction in operating expenses (excluding finance and depreciation), which fell from INR 10.51 Cr to INR 6.36 Cr.

EBITDA Margin

EBITDA margin (Profit before Depreciation, Finance Cost, and Tax) saw a substantial increase from 26.25% in FY 2024 to 51.73% in FY 2025. Core profitability improved as the company optimized its cost structure, with total expenses before finance costs dropping by nearly 40% YoY.

Capital Expenditure

Property, Plant, and Equipment records are maintained, but specific planned CAPEX for FY 2026 is not disclosed. Depreciation increased by 114.5% to INR 0.52 Cr, suggesting recent additions to fixed assets or technology infrastructure.

Credit Rating & Borrowing

The company is actively borrowing through Unlisted, Senior, Secured, Unrated, Taxable, Redeemable Non-Convertible Debentures (NCDs) with a fixed coupon rate of 13.00% per annum. Recent allotments include INR 2.80 Cr (Dec 2025), INR 0.67 Cr (Dec 2025), and INR 0.25 Cr (Nov 2025).

⚙️ Operational Drivers

Raw Materials

As an NBFC, the primary 'raw material' is the cost of funds. Finance costs represent the largest operational input, which surged by 640.6% YoY to INR 3.19 Cr in FY 2025 as the company increased its leverage to fund AUM growth.

Import Sources

Not applicable for financial services; capital is sourced domestically through private placements of NCDs and partnerships with other NBFCs.

Key Suppliers

Capital is sourced from private investors via NCD placements and through deepened NBFC partnerships to ensure financial resilience.

Capacity Expansion

The company's 'capacity' is defined by its lending headroom. With a Capital Adequacy Ratio (CAR) of 53.53% as of March 31, 2025, the company is well above the 15% regulatory minimum, providing significant headroom to raise further debt and expand the loan portfolio.

Raw Material Costs

Finance costs as a percentage of total income rose from 3.03% in FY 2024 to 24.44% in FY 2025. This reflects a strategic shift toward debt-funded growth, as evidenced by the Debt-Equity ratio increasing from 0.09 to 0.75.

Manufacturing Efficiency

Lending efficiency is tracked via GNPA and NNPA. Gross Non-Performing Assets (GNPAs) stood at 2.54% and Net Non-Performing Assets (NNPAs) at 1.99% as of March 31, 2025.

Logistics & Distribution

Distribution is handled through digital lending models and data analytics to enhance customer experience and reduce the cost of acquisition.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Growth will be achieved by leveraging the high Capital Adequacy Ratio (53.53%) to raise more debt via NCDs (at 13% interest) to fund the expansion of the loan book. The company is investing in sophisticated technology and data analytics to strengthen credit assessment and target high-quality, low-risk segments.

Products & Services

Personal loans, business loans, and other credit facilities provided as a Non-Banking Financial Company (NBFC).

Brand Portfolio

IBL Finance

New Products/Services

The company is focusing on 'high-quality, low-risk segments' and enhancing digital lending through data-driven tools, though specific new product names are not listed.

Market Expansion

Planning to deepen NBFC partnerships and use digital channels to expand reach beyond its current base in Gujarat.

Market Share & Ranking

Not disclosed; the company is a growing player in the fintech-led NBFC space.

Strategic Alliances

Deepened partnerships with other NBFCs to ensure financial resilience and diversify the lending portfolio.

🌍 External Factors

Industry Trends

The industry is shifting toward digital-first lending and stricter fraud risk management. RBI's July 2024 Master Directions on Fraud Risk Management require NBFCs to implement proactive risk mitigation, which IBL is adopting through technology investments.

Competitive Landscape

Competes with other small-to-mid-sized NBFCs and fintech lenders in the unsecured and small business loan segments.

Competitive Moat

The company's moat lies in its high Capital Adequacy Ratio (53.53%), which provides a massive buffer for growth compared to peers, and its data-driven credit assessment tools which keep NNPA at a manageable 1.99%.

Macro Economic Sensitivity

Highly sensitive to Indian economic growth and inflation. Rising inflation can lead to higher interest rates, increasing the company's borrowing costs (currently 13% for NCDs).

Consumer Behavior

Increasing preference for digital loan disbursements and automated transfers over traditional cheques.

Geopolitical Risks

Global uncertainties like the Eurozone crisis or crude oil volatility are noted as factors that can reduce foreign investor confidence and stress the domestic financial system.

⚖️ Regulatory & Governance

Industry Regulations

Regulated by RBI and SEBI. Must comply with RBI's 'Fair Practices Code' (Aug 2023) regarding penal charges and the 'Operational Risk Management' framework (April 2024).

Environmental Compliance

Not a material cost for NBFC operations.

Taxation Policy Impact

Effective tax rate for FY 2025 was approximately 21.3% (INR 0.64 Cr tax on INR 2.99 Cr PBT).

Legal Contingencies

The company reported that it did not have any pending litigations which would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Regulatory changes by RBI regarding capital adequacy or provisioning could impact profitability by 10-15%. Interest rate mismatches are a primary concern.

Geographic Concentration Risk

High concentration in Western India (Gujarat), making it susceptible to regional economic downturns.

Third Party Dependencies

Reliance on NBFC partners for co-lending or liquidity support.

Technology Obsolescence Risk

The company is mitigating this by planning continued investment in sophisticated technology infrastructure to avoid being disrupted by newer fintech entrants.

Credit & Counterparty Risk

Credit risk is reflected in the 2.54% GNPA; the company uses data analytics to maintain receivables quality.