Akme Fintrade (India) Limited has achieved a significant milestone with ACUITE upgrading its credit rating to 'ACUITE A-' with Stable outlook, reflecting the NBFC's improved financial performance and sustained business growth. The comprehensive rating action covers facilities worth Rs. 855.00 Cr across multiple instruments.

Rating Upgrade and New Assignments

ACUITE has upgraded the long-term rating from 'ACUITE BBB+' to 'ACUITE A-' on existing facilities while assigning new ratings across proposed instruments. The rating action demonstrates the company's strengthened credit profile and operational improvements.

Strong Business Performance Drives Upgrade

The rating upgrade is primarily attributed to sustained growth in the loan portfolio and improved earning profile. The company's Assets Under Management (AUM) demonstrated robust expansion, growing by approximately 39 percent from Rs. 618.61 Cr as on March 31, 2025 to Rs. 862.62 Cr as on December 31, 2025, compared to Rs. 425.65 Cr in FY2024.

Disbursements reached Rs. 282.04 Cr during 9MFY2026, representing an increase from Rs. 253.78 Cr in FY2025. This growth trajectory translated into enhanced financial performance, with interest income rising from Rs. 69.74 Cr during 9MFY2025 to Rs. 102.04 Cr during 9MFY2026. Consequently, Profit After Tax improved to Rs. 30.05 Cr during 9MFY2026 from Rs. 25.69 Cr during 9MFY2025.

Capital Structure and Financial Metrics

The company maintains a healthy capital structure with networth standing at Rs. 412.31 Cr and gearing of 1.12 times as on December 31, 2025. The Capital Adequacy Ratio improved significantly to 59.27 percent as on March 31, 2025 compared to 49.86 percent as on March 31, 2024, supported by promoter equity infusion and IPO proceeds in FY2025.

Areas of Concern and Risk Factors

Despite the positive rating action, ACUITE highlighted certain challenges that partially offset the company's strengths. Asset quality showed marginal deterioration, with Gross Non-Performing Assets increasing from 2.77 percent as on March 31, 2025 to 2.94 percent as on December 31, 2025. The on-time portfolio reduced from 94.60 percent to 91.58 percent during the same period.

Geographical concentration remains a key risk factor, with approximately 61 percent of the on-book loan portfolio as on December 31, 2025 originating from Rajasthan. This concentration exposes the company to regional economic fluctuations and competitive pressures.

Company Profile and Operations

Udaipur-based Akme Fintrade (India) Limited, incorporated in 1996, operates as a non-deposit taking NBFC engaged in financing two-wheelers, four-wheelers, commercial vehicles, and loan against property for SME borrowers. The company operates across five states - Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, and Delhi - through a network of 29 branches as on December 31, 2025, with majority operations concentrated in Rajasthan.

Akme Fintrade (India) has announced its board's approval for issuing non-convertible debentures (NCDs) worth up to Rs 50 crore through private placement. The company has filed a regulatory disclosure under Regulation 30 and 51 of SEBI Listing Regulations, providing comprehensive details about the debenture issuance.

Debenture Issue Specifications

The Loan & Investment Committee, authorized by the Board of Directors, has approved the issuance of Senior, Secured, Listed, Rated, Transferable, Redeemable, Non-Convertible Debentures. The following table outlines the key parameters:

Security and Risk Management

The debentures will be backed by robust security arrangements. The company will maintain a minimum security cover of 1.10 times at all times during the tenure, secured against loan receivables that meet specific eligibility criteria. This security structure provides additional protection for debenture holders.

Default and Penalty Framework

The company has established a comprehensive penalty structure for various scenarios. In case of payment default or Event of Default, an additional interest rate of 2% per annum above the applicable rate will be charged on the outstanding principal amount. Similar penalties apply for breach of covenants, delay in security creation, and delay in executing the Debenture Trust Deed.

Strategic Capital Initiative

This fundraising initiative represents a strategic move to diversify funding sources and strengthen the capital structure. The private placement route allows efficient capital raising from targeted institutional and high-net-worth investors while maintaining control over the process. The NSE listing will provide investors with liquidity through secondary market trading, enhancing the investment proposition's attractiveness.