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    FINKURVE

    FINKURVE
    Financial Services·9 Feb 2026
    Management Summary

    Finkurve Financial Services reported strong Q3 FY26 results with AUM growing 118% YoY to Rs. 833 crores and PAT increasing 24% YoY. The company expanded its branch network from 72 to 98 and maintained NPAs below 2%. Management highlighted a focus on technology-enabled gold-owned NBFC operations and a strategy for sustainable, risk-adjusted growth, while acknowledging current NIM contraction and lower ROA/ROE due to low leverage.

    Highlights

    5

    • Assets Under Management (AUM) grew by 118% from Rs. 381 crores to Rs. 833 crores.

    • Branch network expanded significantly from 72 to 98 branches.

    • Income grew by 31% year-on-year.

    • Profit After Tax (PAT) grew by 18% quarter-on-quarter and 24% year-on-year.

    • Non-Performing Assets (NPAs) were maintained below 2%, significantly better than the industry average of 3%.

    Concerns

    3

    • Net Interest Margin (NIM) is currently 15%, higher than the industry average of 11-12%, due to low leverage.

    • Return on Equity (ROE) is 8-9% and Return on Assets (ROA) is 3.5-4%, which is lower due to the company's current low leverage.

    • Finance costs have risen as leverage increased to 1.67x, impacting overall profitability.

    Key financials

    Single quarter

    12 metrics
    1. 01AUM₹833 Cr+118%YoY
    2. 02Branch Network98 branches
    3. 03Income Growth31%
    4. 04PAT Growth QoQ18%
    5. 05PAT Growth YoY24%

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Liquidity disclosed

    The company's cash position has remained strong across quarters with undrawn sanctions. All assets are current assets, including the entire AUM, as there are no long-term products. The PL portfolio is a 30-day product. The current ratio is 2.6.

    Guidance & targets

    8
    CategoryTargetPriority
    Volume
    AUM Growth
    40-50%
    		High
    Capacity
    Branch Network Growth
    40-50%
    		High
    Capacity
    New Branches Added
    50-60
    		High
    Debt
    Leverage Ratio
    4x
    		High
    Debt
    NCD Funding Mix
    1/3rd to 2/3rd or 60-40 ratio
    		High
    Profitability
    NIM
    11-12%
    		Medium
    Profitability
    OPEX to AUM / Cost to Income Ratio
    better than peers
    		Medium
    Other
    Co-lending AUM Proportion
    10-15%
    		High

    Leverage Ratio

    next quarter
    Current1.67x
    TargetProgress towards 4x

    Why it matters

    Increasing leverage is key to improving NIM, ROA, and ROE towards industry averages.

    Our next goal and target is to be at 4x.

    How to verify

    key_financials.metrics[label='Leverage']

    Risks & concerns

    4
    RiskSeverity

    NIM compression due to low leverage

    Current NIM of 15% is higher than industry average (11-12%) due to low leverage (1.67x); expected to normalize as leverage increases to 3-4x. — Management acknowledged

    medium

    Lower ROE/ROA due to low leverage

    ROE at 8-9% and ROA at 3.5-4% are currently low because of the company's low leverage, which management aims to increase. — Management acknowledged

    medium

    Higher finance costs

    Current borrowings have higher finance costs due to the company's external credit rating and low leverage, expected to rationalize with growth and improved rating. — Management acknowledged

    medium

    Evolving regulatory framework for NBFCs

    The company is proactively strengthening governance and compliance preparedness for potential higher regulatory layers. — Management acknowledged

    low

    Q&A highlights

    8

    “The contraction in NIM that you see is on account of the operating leverage or the leverage that we are having it on our capital. Previously, our capital base was very good. Our CRAR was above 50% and the leverage was less than 1. Currently, as we speak, year-on-year basis, despite the equity infusion that we have done of Rs. 111 crores in May, our leverage has also grown to 1.67. So, with the increasing finance cost, yes, you will see that the industry is somewhere about 11% to 12%, we are at 15%, we are still high. And once we are at an industry average leverage of 3x to 4x, you will see we will be somewhere in the industry range of 11% to 12% of NIM.”

    Explains the reasons behind current NIM contraction and outlines the path to normalization as leverage increases.

    asked by Urmish Shah

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Financial Performance Overview

    Finkurve Financial Services reported robust Q3 FY26 results, with Assets Under Management (AUM) growing by 118% year-on-year to Rs. 833 crores from Rs. 381 crores. The company's branch network expanded significantly from 72 to 98 branches. Income increased by 31% year-on-year, and Profit After Tax (PAT) grew by 18% quarter-on-quarter and 24% year-on-year, reflecting strong operational performance.

    02

    Asset Quality and Profitability Metrics

    The company successfully maintained its Non-Performing Assets (NPAs) below 2%, significantly outperforming the industry average of around 3%. However, Return on Equity (ROE) stood at 8-9% and Return on Assets (ROA) at 3.5-4%, which management attributed to the company's current low leverage. Net Interest Margin (NIM) was 15%, higher than the industry average of 11-12%, with expectations for it to normalize as leverage increases.

    03

    Strategic Focus and Technology Integration

    Finkurve is positioning itself as a next-generation technology-enabled gold-owned NBFC, leveraging its integration with the Augmont ecosystem for deep experience in gold sourcing, distribution, and risk management. Technology and AI are primarily utilized for risk control, enhancing customer experience, and improving operating efficiency. The company is making upfront investments in its in-house tech stack and automation to improve scalability and turnaround times without compromising risk controls.

    04

    Growth Strategy and Market Opportunity

    The company's growth strategy is measured and risk-adjusted, consciously avoiding aggressive pricing or relaxed underwriting. Management expects AUM to grow 40-50% in the next year, driven by new customer acquisition and branch expansion rather than gold price appreciation. They plan to add 50-60 new branches this year, expanding the network by 40-50% over the next 1-1.5 years, while ensuring profitable growth.

    05

    Leverage and Funding Mix

    Finkurve's leverage ratio currently stands at 1.67x, with a strategic target to reach 4x in the near future. This increase in leverage is expected to bring NIMs to the industry average of 11-12% and improve ROE/ROA. Following an equity infusion of Rs. 111 crores in May, the company is also diversifying its funding mix, aiming for a one-third to two-third or 60-40 ratio between banks/financial institutions and NCDs in the coming years.

    06

    Product Mix and Co-lending Initiatives

    The company is undergoing a strategic shift in its Personal Loan (PL) product, transitioning from a 30-day high-churning product to a 3-month EMI product. This change has moderated fee income but is expected to spread out yields and improve overall revenue quality. Finkurve is also exploring co-lending, targeting a proportion of 10-15% of its overall AUM for the next year, noting that operational workflows for co-lending are largely similar to on-book lending.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.