AKIKO Q3 FY26 earnings call

Akiko Global Services Limited delivered robust financial results for Q3 FY26, with revenue from operations reaching INR50.51 crores, marking a significant 175% year-on-year and 45% quarter-on-quarter growth. Net profit for the quarter stood at INR5.72 crores, demonstrating over 3x year-on-year and 37% quarter-on-quarter growth, with a healthy PAT margin of 11%. For the first nine months of FY26, the company achieved INR115 crores in revenue and INR11.90 crores in net profit, already surpassing the full-year FY25 figures of INR77.5 crores and INR7.6 crores, respectively.

The company has successfully diversified its distribution mix, with the loans business now contributing 70% of total distribution, up from a lower share previously. Credit card distribution, which once accounted for 65-70% at its peak, has now reduced to 30%, reflecting a strategic shift. This diversification, driven by regulatory changes in the credit card segment, has allowed the company to focus on more profitable loan products, with 90% of loans being unsecured and 10% secured.

Akiko Global successfully launched the Android version of its Akiko Pay application, achieving 25,000 downloads within the first 10 days. The iOS version is slated for launch by February 15, 2026. The platform aims to integrate hotel and flight bookings, discount vouchers, and a crucial KYC integration to increase transaction limits from INR10,000 to INR2 lakhs. Management projects reaching 1 million customers within six months post-integrations.

Akiko Pay is positioned as a 'payments plus credit app' designed to leverage the company's existing customer base and cross-sell financial products. It offers a flat 1% cashback on transactions, funded by the company's MDR earnings (1.5-1.8%), which also keeps customer acquisition costs low at INR10-15 per user (expected to stabilize at INR15-20 with iOS). Management envisions Akiko Pay contributing INR50 crores in revenue and INR1.5 crores in PAT within three years, targeting a 50 million customer base.

The company has demonstrated improved operating leverage and cost discipline, leading to a 16% EBITDA margin and 11.3% PAT margin in Q3 FY26. Management expects these margins to remain stable and gradually improve going forward^⏳. The development of Akiko Pay was achieved without significant additional capital expenditure, as the existing IT team handled the development, with only INR10-15 lakhs spent on licenses.

Akiko Global plans to launch an insurance distribution product starting April 2026, aiming to monetize its large customer database through digital acquisition. The company's growth is supported by a rising credit card market (15% YoY) and loan book market (18% over five years). Ankur Gaba, the founder, will assume the role of Managing Director from next year, signaling continued leadership and strategic direction.

Management addressed concerns regarding increasing RBI regulations on unsecured lending and credit cards by emphasizing its role as an aggregation business, not a lender. The company maintains multiple relationships with regulated banks and NBFCs, diversifying risk and adhering to a 'compliance-first' approach, ensuring all operations follow RBI rules and regulations.