AKIKO Q4 FY26 earnings call

Akiko Global Services Limited reported strong financial performance for Q4 FY26, with revenue from operations reaching ₹57.7 crores, marking a 48% year-on-year growth. For the full FY26, the company achieved ₹172.6 crores in revenue, surpassing its vision of ₹150 crores, and PAT grew 120% to ₹17.6 crores, with EPS almost doubling to ₹14.3. This growth reflects the company's aggressive transformation from a traditional financial distribution business to a technology-driven hybrid fintech platform, integrating digital customer acquisition with on-ground fulfillment.

AkikoPay, identified as a crucial long-term strategy, has garnered over 50,000 Android downloads and exhibits healthy user engagement with repeat transactions. The iOS version, previously delayed due to compliance issues, is now cleared and expected to go live within May 2026. Management projects AkikoPay to contribute ₹50-100 crores in revenue for FY27, primarily through cross-selling financial products, MDR, and engagement features like air/hotel bookings, emphasizing a sustainable model without a cash-burn approach.

The company is strategically expanding its physical branch presence across multiple cities, including Delhi NCR, Mumbai, and Bangalore, to complement its digital growth. This hybrid model is proving effective, boosting lead conversion rates from 10% (digital only) to 60-80% (with physical presence) and enhancing customer experience. The total combined workforce, including employees and channel partners, has grown to over 900, supporting this scaled-up operational model.

Akiko's core business segments demonstrated robust performance, with credit card disbursements exceeding 16,000 per month. The company has established partnerships with over 40 banks and NBFCs, adding 20-25 new partners in FY26. The monthly disbursement run rate for loans has reached ₹400 crores+, with a strategic target to grow the unsecured loan book to ₹1,000 crores by FY27, maintaining an 80:20 unsecured to secured loan mix.

Q4 FY26 margins experienced temporary pressure^📎 due to planned investments in branch infrastructure and technology systems, as well as geopolitical factors impacting Dubai operations. Despite this, management is optimistic about future profitability, guiding for FY27 profit margins to remain similar to current levels, with a long-term vision of achieving 12-13% PAT margins by 2030. The focus remains on sustainable growth, improving operational leverage, and digital efficiency.

Dubai operations contributed ₹16 crores to FY26 revenue but faced a dip in Q4 due to geopolitical issues. However, revenue has shown signs of revival, reaching ₹1 crore in April and projected to hit ₹1.25 crores in May, with a FY27 target of ₹20 crores. The company is also expanding its product offerings, with plans to launch mutual funds and insurance products by August and demat accounts within May 2026, further diversifying its revenue streams.