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Emerald Finance Limited — Q4 FY25 earnings call

Call held 23 May 2025

Company page: Emerald Finance share price, financials & guidance record

Management summary

Emerald Finance reported strong financial performance for Q4 and full year FY25, driven by significant growth in both total income and net profit, alongside maintaining a zero NPA status. The company's technology-driven early wage access (EWA) product gained substantial traction, expanding its partnership base and exceeding disbursement targets. A new strategic partnership for invoice discounting was also announced, positioning the company for continued growth in the financial services sector.

Highlights

  • Q4 FY25 Total Income: Rs. 6.5 crores, up 66.6% YoY

  • Q4 FY25 Net Profit: Rs. 2.65 crores, up 132% YoY

  • FY25 Consolidated Total Income: Rs. 21.63 crores, up 61.9% YoY

  • FY25 Consolidated Net Profit: Rs. 8.89 crores, up 114% YoY

  • Zero Non-Performing Assets (NPA) reported for FY25.

  • EWA partnerships: 62 as of March 31, 2025, with a target to scale to 250 in FY26.

  • EWA disbursement in March 2025: over Rs. 3 crores, exceeding the Rs. 2 crores projection.

  • Strategic partnership with Baya PTE Limited Singapore for invoice discounting initiated.

Key financials

3 periods

Headline

  • NPA
    0%
  • ROE
    10.8%
  • Loan Book (as of Mar 31, 2025)
    ₹80 Cr
  • Net Worth (as of Mar 31, 2025)
    ₹75.1 Cr
  • Outstanding Debt (as of Mar 31, 2025)
    ₹13 Cr

Q4 FY25

  • Total Income
    ₹6.5 Cr
    YoY +66.6%
  • Net Profit
    ₹2.65 Cr
    YoY +132.4%

FY25 Consolidated

  • Total Income
    ₹21.63 Cr
    YoY +61.9%
  • Net Profit
    ₹8.89 Cr
    YoY +114.7%

What they filed

Q1 FY27: revenue up 40.7%, net profit up 53.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue5 6 6 7 7 +38%8 +36%10 +51%9 +41%
Net profit2 2 3 3 4 +76%4 +61%4 +64%5 +53%
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.

Segment breakdown

Share of Loan Book (as of Mar 31, 2025)
₹80 Cr Total
  • Business Loan ₹77 Cr 96.3%
  • EWA (Early Wage Access) ₹3 Cr 3.8%

Capital allocation

high confidence
  • Debt Gross ₹13 Cr
    Rs. 75 crores as on 31st March, the total outstanding debt was only Rs. 13 crores.
  • Liquidity Cash ₹3 Cr From the Rs. 17 crores raised through preferential allotment, Rs. 14 crores have been utilized, leaving Rs. 3 crores. Surplus funds are invested in SBI Liquid Fund yielding 7%.
    Out of the Rs. 17 crores, Rs. 10 crores was received on 31st March, a preferential issue closed on 31st March. So, as of now, we have almost utilized about Rs. 14 cores out of that and only Rs. 3 cores are remaining in the bank.

Guidance & targets

EWA Partnerships

  • Number of EWA partnerships EWA Partnerships · current financial year · High confidence 250

    From 60 today

    We plan to scale this number of partnerships from 60 to 250 partnerships during the current financial year.

    — Sanjay Aggarwal

EWA Disbursement

  • EWA disbursement EWA Disbursement · by March 2026 · High confidence ₹15 crores
    I think if we are able to achieve 250, we should have about Rs. 15 crores of disbursement by next year end, March 2026.

    — Sanjay Aggarwal

Business Loan Book

  • Business loan book Business Loan Book · by March 2026 · High confidence ₹110+ crores
    See, we are targeting Rs. 15 crores book by end of March for EWA and about Rs. 110 plus crores in business loan. That's the bare minimum.

    — Sanjay Aggarwal

NSE Listing Eligibility

  • Net worth for NSE listing NSE Listing Eligibility · FY26 and FY27 · High confidence ₹75 crores
    One of the major reasons for coming out with the preferential allotment is the net worth should increase Rs. 75 crores, this year we have closed on Rs. 75.10 crores. So '26 and '27, if our net worth is more than Rs. 75 crores, we be eligible for listing on NSE.

    — Sanjay Aggarwal

EWA Revenue Growth

  • Quarter-on-quarter revenue growth from EWA EWA Revenue Growth · going forward · Medium confidence 100%
    So, on a quarter-to-quarter basis, our revenue from this program has increased by close to 100%. And we strive to maintain that percentage going forward.

    — Talin Aggarwal

What to watch in Q1 FY26

EWA Partnerships Growth

current financial year (FY26)
Current 62 partnerships (as of Mar 31, 2025)
Target Progress towards 250 partnerships

Why it matters

Key indicator of EWA product's market penetration and future revenue growth.

We plan to scale this number of partnerships from 60 to 250 partnerships during the current financial year.

Risks & concerns

  • EWA Loan Collection Challenges

    medium

    Difficulty in collecting money back from small-ticket, short-duration EWA loans, especially with rapid disbursement growth, leading to a cautious growth strategy.

    It is really not that difficult to disburse money... But to collect that money back, collect the entire Rs. 100 crores back is a tough challenge. So we want to go slow and steady on a firm footing.

    Management acknowledged

  • ROE vs. Risk Appetite Trade-off

    low

    Pressure to increase Return on Equity (ROE) could lead to taking on higher risks, but management prioritizes risk control over aggressive ROE expansion.

    See, that can always increase if we take higher risk. We do not want to take extraordinary risk, please appreciate one thing.

    Analyst acknowledged

  • Bill Discounting Market Risks

    low

    The bill discounting market has seen small NBFCs fail due to inherent risks, but Emerald Finance mitigates this by focusing on AA-plus rated anchor partners and robust due diligence.

    See, our credit policy is very tight and most of the customers, they are anchor partners are large ones like JSW Steel, Rickitt & Coleman, Haldiram.

    Analyst acknowledged

Q&A highlights

8 direct
Technology Platform & BCP/DRP Direct
the entire technology has been developed in-house and we give a lot of emphasis on data security, data privacy and continuation of business... in case of any Black Swan event, we can go live with the entire data in less than 12 hours.

Clarifies the company's in-house tech capabilities and robust disaster recovery plans, addressing operational resilience.

Asked by Hitesh Randhava

Bank Acquisition of EWA Startups Direct
EWA as the product is in nil interest, however, we charge a fee at the time of disbursement... this one does not fit in line with what the banks can do and what the banks cannot do, right, because it is about the cash which is into the savings account or from various customers like us.

Explains the fundamental reasons why traditional banks are unlikely to acquire EWA startups, highlighting regulatory and operational mismatches.

Asked by Hitesh Randhava

Differentiation in Instant Salary Access Direct
the entire supply chain so to say is owned by us... we act as a one-stop solution for all the financing needs of a corporate and of an employee through our subsidiary, ShubhBank.com... And that network of ShubhBank has been built by almost 30 years of its existence in the market.

Provides a clear understanding of Emerald Finance's competitive advantages, including integrated operations and long-standing market presence through its subsidiary.

Asked by Vishal Dudhwala

Invoice Discounting Rationale & Risk Mitigation Direct
we are essentially trying to build a synergy around financing to employers and employees... our cost of acquisition goes down dramatically because of EWA. And our underwriting is already done on the corporate because of EWA.

Details the strategic benefits of the invoice discounting partnership, emphasizing cost efficiency and leveraging existing client relationships.

Asked by Khush Kothari

EWA Employee Penetration & Repeat Rate Direct
on a portfolio level we see an engagement of close to 10% to 12%, and a repeater of close to 80% to 85%. So essentially, until a person doesn't leave the corporate, they tend to use our facility, as they have already used it once.

Offers key metrics on EWA product adoption and stickiness, indicating strong user retention and potential for cross-selling.

Asked by Khush Kothari

NSE Listing Plans Direct
to get listed on the National Stock Exchange, a BSE listed company needs Rs. 35 crores of net worth for three consecutive balance sheets. This year we have crossed Rs. 35 crores... this year we have closed on Rs. 75.10 crores. So '26 and '27, if our net worth is more than Rs. 75 crores, we be eligible for listing on NSE.

Outlines the specific financial requirements and timeline for Emerald Finance's potential NSE listing, a significant future milestone.

Asked by Dharmesh Patel

EWA Loan Collection Challenges & Growth Strategy Direct
It is really not that difficult to disburse money... But to collect that money back, collect the entire Rs. 100 crores back is a tough challenge. So we want to go slow and steady on a firm footing.

Reveals management's cautious approach to EWA growth, prioritizing robust collection and asset quality over aggressive disbursement, despite high demand.

Asked by Akash Jha

EWA as a Customer Acquisition Tactic Direct
our EWA is essentially a customer acquisition tactic we use. So we are able to, one, acquire a business corporate house; second, the employees of it. And we cross sell a lot to both these categories.

Clarifies the strategic role of EWA as a foundational product for acquiring both corporate clients and their employees, enabling future cross-selling of higher-value financial products.

Asked by Ankur Aggarwal

2 min read 6 chapters

Detailed narrative

Strong Financial Performance & Growth

Emerald Finance delivered robust financial results for Q4 and full year FY25. Consolidated total income for Q4 FY25 grew by 66.6% year-over-year to Rs. 6.5 crores, with net profit surging 132% to Rs. 2.65 crores. For the full fiscal year, consolidated total income reached Rs. 21.63 crores, a 61.9% increase from the previous year, and net profit more than doubled to Rs. 8.89 crores, up 114%. The company also reported zero Non-Performing Assets (NPA) for the year, reflecting strong asset quality.

Early Wage Access (EWA) Product Traction

The flagship EWA product demonstrated significant momentum, with 62 partnerships successfully onboarded as of March 31, 2025. Monthly disbursements for EWA exceeded projections, reaching over Rs. 3 crores in March 2025 against a target of Rs. 2 crores, with an average ticket size of Rs. 25,000. Management aims to scale EWA partnerships to 250 during the current financial year and targets Rs. 15 crores in EWA disbursements by March 2026.

Strategic Expansion & Product Diversification

Emerald Finance announced a strategic partnership with Baya PTE Limited Singapore for invoice discounting, targeting suppliers of large corporates like JSW Steel and Haldiram. This initiative is seen as a lucrative cross-sell opportunity for existing EWA clients, leveraging pre-existing underwriting and reducing customer acquisition costs. The company also confirmed that its mobile application has been approved by the Play Store, with a launch for listing clients imminent.

Asset Quality & Risk Management Focus

A key highlight was the achievement of zero NPAs for FY25, a significant improvement from previous years where NPAs were less than 0.5%. Management emphasized a cautious approach to growth, particularly in EWA and personal loans, prioritizing robust collection mechanisms over aggressive disbursement. They acknowledged the challenge of collecting small-ticket loans and stated a preference for 'slow and steady' growth to maintain asset quality.

Capital & Funding Position

The company successfully raised Rs. 17 crores through a preferential allotment in Q4 FY25, with Rs. 10.2 crores received by March 31, 2025, and Rs. 14 crores utilized, leaving Rs. 3 crores in the bank. As of March 31, 2025, the total loan book stood at Rs. 80 crores, comprising Rs. 77 crores in business loans and Rs. 3 crores in EWA. The company's net worth closed at Rs. 75.10 crores for FY25, meeting the first year's eligibility criteria for potential NSE listing, which requires maintaining Rs. 75 crores net worth for three consecutive years.

Technology-Driven Operations & Differentiation

Emerald Finance positions itself as a technology-driven non-deposit taking NBFC, with its entire technology platform developed in-house by a 5-person IT team. This in-house capability ensures strong data security, privacy, and business continuity, with a stated recovery time of less than 12 hours for critical events. The company differentiates itself by owning the entire supply chain from distribution to lending and offering a one-stop financing solution through its subsidiary, ShubhBank.com, leveraging its 30-year market presence.

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