Akme Fintrade (India) Ltd reported a 20.3% year-on-year increase in net profit to ₹115.74 lakh for the quarter ended June 30, 2026, driven by a significant rise in interest income and controlled impairment costs. The Udaipur-based non-banking financial company (NBFC) also announced its regulatory transition from Non-Banking Financial Company – Base Layer (NBFC-BL) to Non-Banking Financial Company – Middle Layer (NBFC-ML) under the Reserve Bank of India's Scale Based Regulation framework, signaling expanded operational capacity.

The Board of Directors approved the unaudited standalone financial results on July 29, 2026, based on recommendations from the Audit Committee. Statutory Auditor Valawat & Associates issued an unmodified limited review report on the financial statements, confirming compliance with Indian Accounting Standards and RBI prudential norms. The Board also appointed Dipesh Jain as Chief Operating Officer to oversee operations.

Financial Performance

Total income for the quarter rose 30.9% to ₹417.71 lakh from ₹319.22 lakh in the corresponding period last year, primarily fueled by interest income which jumped 34.2% to ₹410.70 lakh. Other operating income contributed ₹7.01 lakh, while gains on derecognized financial assets were nil compared to ₹10.50 lakh in the previous quarter.

Expenses increased 40.4% to ₹276.25 lakh, largely due to higher finance costs of ₹174.97 lakh. However, impairment charges on financial instruments dropped significantly by 54.2% to ₹8.49 lakh from ₹18.55 lakh in Q1FY25, indicating improved asset quality. Employee benefit expenses rose 38.7% to ₹45.84 lakh.

Profit before tax stood at ₹141.46 lakh, up from ₹121.07 lakh in the prior year period. Tax expenses amounted to ₹25.72 lakh, resulting in a net profit after tax of ₹115.74 lakh. Earnings per share (basic) were ₹0.27 per share, compared to ₹0.23 in the previous year.

Capital Raises and Regulatory Compliance

During the quarter, the company allotted 13 million equity shares upon conversion of fully convertible warrants. This included 3 million shares from the first tranche (allotted February 7, 2025) and 10 million shares from the second tranche (allotted May 21, 2026). Additionally, 820,000 warrants held by promoters Nirmal Kumar Jain and Anita Arun Jain were converted into 8.2 million equity shares at ₹11.10 per share, raising ₹68.27 lakh.

The company maintained full compliance with its debt covenants. Outstanding secured non-convertible debentures totaling ₹23 crore carry security covers ranging from 110% to 125%. Valawat & Associates certified that the security cover ratio stands at 1.21 times on book value. The debt-equity ratio was 1.16 times, and the capital adequacy ratio (CRAR) stood at 46.37%, well above regulatory minimums.

What the Numbers Show

The divergence between revenue growth and expense expansion highlights a shift in cost structure. While interest income grew 34.2%, finance costs rose sharply by 54.4%, reflecting aggressive funding activities to support loan book growth. However, this pressure was mitigated by a substantial 54.2% decline in impairment charges, suggesting that the quality of new assets is superior to those booked in the prior year. The combination of lower credit losses and stable other expenses allowed net profit to grow at a healthy 20.4% despite the higher cost of funds.

Akme Fintrade has launched AKME GreenX, a dedicated green finance platform powered by Finayo, to accelerate lending for electric mobility and renewable energy projects. The RBI-regulated non-banking financial company announced the partnership on July 25, 2026, marking a strategic shift toward technology-enabled sustainable finance. This move positions the lender to capture growing demand in India’s clean energy sector while leveraging digital infrastructure to streamline credit delivery.

The collaboration combines Akme Fintrade’s established lending expertise with Finayo’s AI-powered digital lending platform. The primary objective is to expand access to green finance across India by offering faster, technology-driven solutions for borrowers seeking capital for electric vehicles (EVs) and solar installations. The press release noted that the initiative is not a disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, but serves as an informational update for stakeholders.

Portfolio Targets and Allocation

The partnership outlines specific financial milestones for the new platform. Over the next two years, Akme Fintrade aims to build a ₹200 crore Green Asset Portfolio. This initial target is evenly divided between two key sectors: ₹100 crore allocated for EV financing and ₹100 crore for solar and distributed renewable energy financing.

Looking beyond the immediate term, the partners have set a longer-term ambition to scale this portfolio significantly. Over the next five years, the goal is to build a ₹1,000 crore EV and Solar Financing Portfolio. This phased approach allows the company to establish operational workflows and risk models before scaling up capital deployment.

Strategic Implications

The launch of AKME GreenX reflects a broader industry trend where NBFCs are integrating specialized fintech platforms to address niche lending segments. By partnering with Finayo, Akme Fintrade seeks to reduce processing times and enhance customer experience through AI-driven underwriting. This technological integration is critical for competing in the rapidly evolving green finance market, where speed and accessibility are key differentiators.

The focus on distributed renewable energy and electric mobility aligns with national sustainability goals. As regulatory support for green initiatives strengthens, lenders with dedicated platforms like AKME GreenX may gain a competitive advantage in securing high-quality assets. For investors, the clarity of the ₹200 crore near-term target provides a measurable benchmark for assessing the partnership’s early success.

What the Numbers Show

The equal split of the initial ₹200 crore portfolio between EVs and solar energy suggests a balanced risk strategy. Electric vehicle financing often involves shorter tenures and higher turnover, while solar projects typically require larger ticket sizes with longer repayment periods. By diversifying across these two sectors from day one, Akme Fintrade mitigates concentration risk associated with any single green technology. The five-year target of ₹1,000 crore implies a compound annual growth rate that would require consistent deal flow and efficient capital recycling, highlighting the importance of the AI-powered platform in maintaining scalability.