UYFINCORP - U. Y. Fincorp

📊 NSE: UYFINCORP 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 14:36

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations decreased by 8.87% YoY, falling from INR 121.85 Cr in FY24 to INR 111.05 Cr in FY25. However, the Corporate Loan segment showed strong growth, with its Assets Under Management (AUM) increasing by 33.4% from INR 169.88 Cr to INR 226.62 Cr during the same period.

Geographic Revenue Split

The company currently operates through 2 branches and 6 Business Correspondents specifically targeting locations in Uttar Pradesh, serving over 3,800 customers. Detailed percentage split by region is not disclosed, but the focus is on expanding into newer geographies.

Profitability Margins

The company recorded a Profit Before Tax (PBT) of INR 16.94 Cr for FY25. Based on revenue of INR 111.05 Cr, the PBT margin stands at approximately 15.25%. Key financial ratios saw fluctuations of 25% or more due to a reduction in the sale of securities and a decrease in trade receivables.

EBITDA Margin

Core profitability is driven by interest income from a total AUM of approximately INR 274.76 Cr. While a specific EBITDA % is not explicitly named, the PBT margin of 15.25% reflects the net profitability after operational and interest costs.

Credit Rating & Borrowing

The company engages in inter-corporate lending and borrowing with related parties at an interest rate of 9.00% per annum for unsecured business purposes, as seen in transactions with entities like Quality Laminators and R.K. Pan Masala Private Limited.

⚙️ Operational Drivers

Raw Materials

As an NBFC, the primary 'raw material' is Capital/Debt Funds. Interest expense on borrowings represents the core input cost, while human resources (talent acquisition and retention) are cited as a critical resource for organizational effectiveness.

Import Sources

Not applicable for financial services; capital is sourced from domestic financial institutions, banks, and related party inter-corporate deposits.

Key Suppliers

Financial sourcing involves Banks and related parties such as Quality Laminators and R.K. Pan Masala Private Limited (providing/receiving loans at 9% interest).

Capacity Expansion

Current operational capacity includes 2 physical branches and 6 Business Correspondents. Expansion is planned through both organic and inorganic opportunities to increase the customer base beyond the current 3,800+ clients.

Raw Material Costs

Not applicable in a traditional manufacturing sense; however, the cost of borrowing is approximately 9% for specific unsecured loans. Operational costs are influenced by the 'right talent' acquisition strategy.

Manufacturing Efficiency

Not applicable; efficiency is measured by loan disbursement volume (3,800+ customers) and the use of AI/Machine Learning for personalized financial advice and predictive analytics.

Logistics & Distribution

Distribution is handled through a digital-first approach under the 'GrowU' and 'Fundobaba' (in collaboration with Fintech Cloud Private Limited) brands.

📈 Strategic Growth

Growth Strategy

Growth will be achieved by expanding into new geographical markets and diversifying service offerings. The company is leveraging technological advancements in AI and machine learning to enhance user experience and is focusing on financial inclusion for the lower half of the socio-economic pyramid.

Products & Services

Corporate loans (ticket sizes up to INR 25 Cr), micro-enterprise loans (business loans), personal loans, and loans against property.

Brand Portfolio

GrowU, Fundobaba (via Fintech Cloud Private Limited).

New Products/Services

Upcoming product launches and enhancements in the digital finance space are expected to increase user engagement and attract a wider audience, though specific revenue contribution % is not yet quantified.

Market Expansion

Targeting expansion into newer geographies through organic and inorganic opportunities, specifically building on the existing footprint in Uttar Pradesh.

Strategic Alliances

Partnership with Fintech Cloud Private Limited (FCPL) for the 'Fundobaba' branding and arrangements with sourcing intermediaries for personal loans.

🌍 External Factors

Industry Trends

The NBFC and Fintech industry is shifting toward digital solutions and financial inclusion. UYFINCORP is positioning itself by integrating AI/ML and focusing on sustainable finance to resonate with socially conscious investors.

Competitive Landscape

Faces stiff competition from both traditional banking sectors and emerging fintech companies entering the lending space.

Competitive Moat

Competitive advantage is derived from technological prowess (AI/ML), a customer-centric approach leading to high retention, and strategic foresight in digital finance. These are sustainable through continuous tech investment and brand building (GrowU).

Macro Economic Sensitivity

Highly sensitive to industrial growth rates and economic cycles, as slow industrial growth impacts the credit demand from mid-sized and corporate clients.

Consumer Behavior

Shift toward digital finance and mobile-based loan sourcing, which the company addresses through its collaboration with Fintech Cloud Private Limited.

Geopolitical Risks

Not explicitly detailed, though general economic uncertainties are managed through a robust risk management framework.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI regulations for NBFCs, SEBI Listing Regulations, and the Companies Act, 2013. Compliance includes KYC/AML norms and Prevention of Sexual Harassment (POSH) Act requirements.

Environmental Compliance

The company has a Corporate Social Responsibility (CSR) policy and is focusing on sustainable finance and ethical investing initiatives.

Legal Contingencies

No incidence of non-compliance reported under SEBI (Prohibition of Insider Trading) Regulations, 2015. No specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Credit risk and potential defaults in the unsecured corporate loan segment (82.48% of AUM) represent the highest uncertainty, potentially impacting the bottom line if asset quality deteriorates.