Finkurve Fin. — Q4 FY26 earnings call

Call held 21 May 2026

Management summary

Finkurve Financial Services Limited delivered a strong Q4 FY26, marked by a 149% YoY AUM growth to INR 1,096 crores and a 105% increase in PAT. The company achieved a credit rating upgrade to BBB+ and maintained excellent asset quality with record low NPAs. Strategic initiatives included a new co-lending partnership with Godrej and the launch of the Arvog Wellness program, alongside a transition to a middle-layer NBFC.

Highlights

  • AUM crossed INR 1,000 crores, reaching INR 1,096 crores, up 149% YoY from INR 439 crores.

  • Total quarterly income grew 71% to INR 69 crores from INR 40 crores.

  • PAT grew 105% in Q4 FY26, indicating strong profitability.

  • Credit rating upgraded to BBB+ by CARE Ratings and Infomerics, reinforcing external confidence.

  • Asset quality remained robust with Gross NPA at 0.13% and Net NPA at 0.09%, representing record low levels.

Concerns

  • Management did not provide specific profit guidance for the next two to three years, only directional growth.

  • Specific numbers for the overdue but not NPA pipeline were not disclosed, with management stating it's an ongoing process.

Key financials

2 periods

Headline

  • AUM
    ₹1,096 Cr
    YoY +149%
  • Total Quarterly Income
    ₹69 Cr
    YoY +71%
  • PAT Growth
    1.1%
  • Gross NPA
    0.13%
  • Net NPA
    0.09%
  • CRAR
    31%
  • Debt-to-Equity
    2.42×
  • ROE
    7.8%
  • ROA
    3.2%
  • Average LTV
    72%
  • Branch Network
    105

FY26

  • Average Cost of Borrowing
    11.2%

What they filed

Q4 FY26: revenue up 67.2%, net profit up 105.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ1 FY25Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26
Revenue28 32 40 40 40 +40%48 +51%52 +30%67 +67%
EBITDA8 8 12 11 15 +73%16 +93%— —
Net profit4 3 6 4 5 +16%6 +71%7 +24%8 +106%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed
    • Branch expansion (per branch capex) 14,00,000 Rs
    Typical capex is around INR 14 lakh to INR 15 lakh. And opex is around INR 2.5 lakh to INR 3 lakh.
  • Debt Gross ₹833 Cr Cost 11.2%
    • New borrowing Raised from capital markets and financial institutions, including PSUs, private banks, SFBs, and NBFCs. ₹677 Cr
    Cost of borrowing for this financial year, we have already gotten the benefit of the credit rating and the cost of borrowing would be around what we have already achieved. So, 11.2% was the number of last financial year, the average cost of borrowing that we have had.
  • M&A Deal Acquisition · Evaluating

    To increase asset size and evaluate synergy and valuation.

    We keep looking at those opportunities on ongoing basis. Till now we have not find anything which is, synergy-wise good and in terms of valuation-wise also. But these options are always there and we keep on evaluating both on the asset side and the non-interest income side.
  • Liquidity Cash ₹102 Cr INR 102 crore cash and cash equivalents served as a deliberate buffer during a slack period and will be deployed into the loan book.
    Our liquidity position as on the balance sheet date was pretty strong. We closed it with INR 102 crore cash and cash equivalents balance.

Guidance & targets

Branch Network

  • Branch Network Growth Branch Network · FY27 · High confidence 40-50%
    Regarding the physical rollout of branches, during the last concall also we have committed that we will be growing by 50% branch network, 40% to 50%. So that plan is still on and we are continuously doing the same thing.

    — Naveen Kottala

  • Branch Count Branch Network · FY27 · High confidence 150-160 branches
    We are looking at about 150 to 160 branches in this year? Yes.

    — Naveen Kottala

Cost of Funds

  • Cost of Funds Cost of Funds · FY27 · Medium confidence Maintain or bring down
    at the company level, we should be in a position to maintain or bring down our cost of funds by changing the borrowing mix, obviously by adding more private banks and PSU players, which can offer us a better cost of funds plus the co-lending partnerships that we have done is already at a better cost. So, having all of these in place, we should be in a position to bring down our cost of funds in this financial year.

    — Aakash Jain

Co-lending

  • Co-lending AUM Contribution Co-lending · end of FY27 · High confidence 20% of overall portfolio
    We aspire to achieve a 20% of the overall portfolio in co-lending by the end of the financial year.

    — Naveen Kottala

Product Launch

  • Agricultural Loan Product Launch Product Launch · FY27 · Medium confidence Launch agri product
    With our new partners, we are in talks with launching an agri product specifically. That we will see over this financial year.

    — Naveen Kottala

Geographic Expansion

  • New Geographies Geographic Expansion · FY27 · Medium confidence Explore Odisha, Goa, Maharashtra
    we are looking in this financial year, we will explore other opportunities which are nearer to our branch, our catchment areas, for example, Odisha and from Karnataka if you move out then maybe Goa or Maharashtra.

    — Naveen Kottala

AUM

  • AUM Growth AUM · FY27 · High confidence 40-50% YoY
    in terms of AUM growth, I think in the last concall also we have for this financial year we have given a guidance of 40% to 50%. So, YoY we will be continuing as per the guidance, but internally we aspire to reach higher AUM growth.

    — Naveen Kottala

  • AUM Target AUM · by 2029 · High confidence INR 5,000 crore
    we aspire to reach maybe in next five years by 2029, we are aspiring to reach about INR 5,000 crore, that is our immediate target.

    — Naveen Kottala

Profitability

  • ROE Profitability · next 3-5 years · Medium confidence 17-18%
    We aspire to again on the ROE and ROA basis for the next five-year horizon, we will aspire to reach a 17% to 18% ROE and ROA is around 3.5% to 4%.

    — Naveen Kottala

  • ROA Profitability · next 3-5 years · Medium confidence 3.5-4%

    — Naveen Kottala

Product Mix

  • Gold Loan Share of AUM Product Mix · by 2029 · Medium confidence Majority
    One thing is for sure, that the gold loan will not be one of the products in our entire AUM, it will be majority, lion's share will be gold loan. So, you can consider us as a gold loan player, gold loan NBFC, even in 2029.

    — Naveen Kottala

  • Personal Loan Book as % of AUM Product Mix · ongoing · High confidence Not more than 10%
    as we envisage to grow this PL book in proportion to our AUM, which is not more than 10% of our overall AUM

    — Aakash Jain

Productivity

  • Branch Productivity Productivity · ongoing · Medium confidence Continuous increase
    continuously we are increasing per branch productivity.

    — Naveen Kottala

Cost of Borrowing

  • Average Cost of Borrowing Cost of Borrowing · FY27 · High confidence Maintain 11.2%
    In this financial year, we are aspiring to maintain the same numbers due to the macro factors the outlook per se seems to be up-trending the cost of funds.

    — Aakash Jain

Capital Raise

  • Equity Raise Capital Raise · FY27 · High confidence Not envisaged
    For this financial year at least, as of now we are not envisaging any capital raise.

    — Aakash Jain

Expenses

  • Fees and Commission Expense Expenses · ongoing · Medium confidence Grow in proportion to AUM
    this fees and commission expense shall grow in proportion to our AUM as well as in proportion. Our revenue shall also grow in that proportion.

    — Aakash Jain

Capital Structure

  • Debt-to-Equity Ratio Capital Structure · long-term · Medium confidence ~4x
    So that's the ideal debt-to-equity ratio that we would like to achieve, around 4x.

    — Aakash Jain

What to watch in Q1 FY27

Branch Network Expansion Progress

FY27
Current 105 branches
Target 150-160 branches (50% growth)

Why it matters

Branch expansion is a key driver for AUM growth and geographic reach, directly impacting future revenue potential.

We have given a guidance of around 50% of expansion in this financial year.

Risks & concerns

  • Overdue but not NPA pipeline transparency

    medium

    Management did not provide specific numbers for the overdue but not NPA pipeline, stating it's an ongoing process to clear them monthly.

    Analyst acknowledged

  • Gold price volatility impact on portfolio

    low

    While gold prices had a strong run, management confirmed comfort with 15-20% corrections, citing no issues during a past 15% fall and ongoing stress testing.

    Analyst downplayed

Q&A highlights

8 direct
Physical branch rollout timeline and technology usage Direct
Regarding the physical rollout of branches, during the last concall also we have committed that we will be growing by 50% branch network, 40% to 50%. So that plan is still on and we are continuously doing the same thing. ... In this financial year, we will see a lot of use of technology at the branch level...

Provides clarity on branch expansion strategy and the role of technology in improving operational efficiency at the branch level.

Asked by Sandeep Kapadia

Cost of funds reduction and credit rating improvement efforts Direct
For this financial year at least, what we are saying is if we consider ourselves as a BBB plus category player, we have already got the best cost of funds and we will try to bring it down with the mix of PSU players and co-lending partnerships.

Addresses investor concerns about funding costs and explains how the recent credit rating upgrade and borrowing mix will help manage it.

Asked by Sandeep Kapadia

Co-lending contribution and future targets Direct
We aspire to achieve a 20% of the overall portfolio in co-lending by the end of the financial year.

Highlights a significant strategic shift towards co-lending and sets a clear, ambitious target for its contribution to the AUM.

Asked by Tanya Kothari

Arvog's penetration in agricultural loan segment and customized products Direct
With our new partners, we are in talks with launching an agri product specifically. That we will see over this financial year.

Indicates plans for diversification into a new product segment (agricultural loans) through co-lending, which could open new growth avenues.

Asked by Tanya Kothari

Management's vision for AUM growth, ROA, and ROE for the next three years Direct
We aspire to again on the ROE and ROA basis for the next five-year horizon, we will aspire to reach a 17% to 18% ROE and ROA is around 3.5% to 4%.

Provides clear long-term financial targets for profitability and efficiency, crucial for investor valuation models.

Asked by Vishal Darji

Deployment of cash and cash equivalents buffer Direct
Having said that, the entire balance deployed again in the loan book.

Clarifies the purpose of the significant cash balance and signals its deployment to support loan book growth, addressing potential concerns about drag on ROA.

Asked by Varun Trivedi

Equity raise plans given AUM targets Direct
For this financial year at least, as of now we are not envisaging any capital raise. If the scenarios change after a quarter, maybe then we should take a call after H1 as to when should we engage with the investor.

Reassures investors about no immediate equity dilution, citing comfortable CRAR and the impact of co-lending on capital requirements.

Asked by Vatsal Chheda

Stress testing for gold price corrections and average LTV Direct
As of the year-end, our average LTV was around 72%... So, we are comfortable in terms of stress test of even 15% to 20% as well.

Provides insight into the company's risk management practices for its core gold loan business, particularly concerning gold price volatility.

Asked by Rutvik Gandhi

2 min read 7 chapters

Detailed narrative

Strong Q4 and FY26 Financial Performance

Finkurve Financial Services Limited reported a robust Q4 FY26, with Assets Under Management (AUM) growing 149% year-on-year to INR 1,096 crores from INR 439 crores. The company's total quarterly income increased by 71% to INR 69 crores from INR 40 crores, and Profit After Tax (PAT) saw a significant 105% growth. This strong performance was supported by steady business momentum and a continued focus on asset quality.

Robust Asset Quality and Capital Adequacy

The company maintained excellent asset quality, with Gross Non-Performing Assets (GNPA) at a record low of 0.13% and Net Non-Performing Assets (NNPA) at 0.09%. Capital adequacy remained strong, with a Capital to Risk-weighted Assets Ratio (CRAR) of 30.96% and a debt-to-equity ratio of 2.42x. This healthy capital position provides ample room for future growth without immediate equity dilution.

Strategic Initiatives: Co-lending and Product Diversification

Finkurve initiated a co-lending partnership with Godrej, which has already built approximately INR 21 crores in AUM, and aims for co-lending to contribute 20% of its overall portfolio by the end of FY27. Additionally, the company launched the Arvog Wellness program, issuing over 150 policies, and plans to introduce an agricultural loan product in FY27 through co-lending partnerships with banks.

Funding Strategy and Cost of Funds Management

In FY26, Finkurve raised approximately INR 677 crores from capital markets and financial institutions, diversifying its lender base by adding 17 new partners. The average cost of borrowing for FY26 was 11.2%. Management aims to maintain or reduce this cost in FY27 by optimizing its borrowing mix, leveraging its recent credit rating upgrade to BBB+, and focusing on private banks and PSU players.

Long-term Growth and Profitability Outlook

The company targets a 40-50% YoY AUM growth for FY27, with an aspiration to reach INR 5,000 crores in AUM by 2029. Long-term (3-5 years) profitability targets include a Return on Equity (ROE) of 17-18% and a Return on Assets (ROA) of 3.5-4%. These targets are underpinned by disciplined growth, continuous improvement in branch productivity, and strategic use of technology.

Branch Network Expansion and Technology Adoption

Finkurve expanded its branch network from 73 to 105 during FY26, adding 32 new branches. The company plans to grow its branch network by 40-50% in FY27, aiming for 150-160 branches. Significant efforts are underway to upgrade technology at the branch level to reduce turnaround times (TAT) for customer onboarding, with major gains expected in the current financial year.

Geographic Expansion and Product Mix Focus

While currently concentrated in South India, Finkurve plans to explore new geographies such as Odisha, Goa, and Maharashtra in FY27, after fully utilizing growth opportunities in existing regions. The company expects gold loans to constitute the majority of its AUM by 2029, while the personal loan book, currently about 3.9% of AUM, will be capped at not more than 10% of overall AUM.

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