Akme Fintrade (India) Limited reported a 43% year-on-year surge in Assets Under Management (AUM) to ₹965.07 crore for the quarter ended June 30, 2026, alongside a 20.4% increase in net profit to ₹11.57 crore. The Udaipur-based non-banking financial company (NBFC) attributed the growth to robust demand in its core MSME and vehicle lending segments, particularly in rural and semi-urban geographies, while maintaining stable asset quality metrics.

The Board of Directors approved the unaudited standalone financial results on July 29, 2026. Statutory Auditor Valawat & Associates issued an unmodified limited review report. The company also announced the launch of Akme GreenX, a new financing program focused on green mobility and energy-efficient assets, signaling a strategic shift toward sustainability financing.

Financial Performance

Total interest income rose 34.2% year-on-year to ₹41.07 crore from ₹30.61 crore in Q1FY26. Net Interest Income (NII) grew 22.3% to ₹23.57 crore. Disbursements stood at ₹84.10 crore, up 19.5% from ₹70.40 crore in the prior year period, though down 12.5% quarter-on-quarter from ₹96.12 crore in Q4FY26.

Asset quality remained resilient. Gross Non-Performing Assets (GNPA) declined marginally by 1 basis point to 2.91%, while Net NPA (NNPA) also fell by 1 basis point to 1.41%. Credit costs improved significantly, dropping by 91 basis points to 0.31% from 1.22% in Q1FY26. Impairment charges on financial instruments decreased sharply by 54.2% to ₹8.49 lakh from ₹18.55 lakh in the corresponding period last year.

Profit before tax was ₹141.46 lakh, resulting in a net profit after tax of ₹115.74 lakh (₹11.57 crore). Earnings per share (basic) increased 17.4% to ₹0.27 from ₹0.23. The Capital Adequacy Ratio (CAR) remained strong at 46.37%, with Tier I Capital at 45.54%.

Strategic Developments

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 on February 7, 2025, and 10 million shares from the second tranche allotted on May 21, 2026. Additionally, promoters Nirmal Kumar Jain and Anita Arun Jain converted 820,000 warrants into 8.2 million equity shares at ₹11.10 per share, raising ₹68.27 lakh.

CEO Akash Jain highlighted the disciplined execution in rural and semi-urban markets as a key driver. He noted that despite sector-wide headwinds from fuel costs and geopolitical tensions, the company’s risk management processes maintained robust asset quality. The introduction of Akme GreenX aims to support India’s transition to a sustainable economy through financing for clean mobility.

What the Numbers Show

The divergence between disbursement growth and interest income expansion suggests an improving yield profile or faster loan book turnover. While disbursements grew 19.5%, interest income surged 34.2%, indicating that the existing loan book is generating higher returns or that the average ticket size has increased. Furthermore, the significant drop in credit costs (91 bps improvement) alongside stable NPAs demonstrates effective provisioning strategies and superior asset quality in new bookings compared to the prior year.

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.