Finkurve Financial Services Limited has received credit ratings from CARE Ratings Limited for its debt instruments, marking a significant milestone in the company's funding diversification strategy. The ratings agency has assigned BBB+ stable ratings to the company's proposed financial instruments totaling ₹450.00 crore.

Rating Details and Instrument Breakdown

CARE Ratings Limited assigned ratings to two key financial instruments through their press release dated March 30, 2026:

The stable outlook reflects expectations that FFSL will continue to grow its loan book with stable asset quality and relatively stable profitability, considering its healthy capitalisation levels.

Financial Performance and Capitalisation

The ratings reflect the company's adequate capitalisation supported by recent equity infusions and internal accruals. In H1FY26, FFSL raised ₹111.5 crore through a preferential allotment to external investors and promoters. The company's tangible net worth improved significantly to ₹335 crore as of December 31, 2025, from ₹206 crore as of March 31, 2025.

The company's total capital adequacy ratio stood comfortable at 39.29%, with Tier I capital adequacy ratio at 39.05% as of December 31, 2025, well above regulatory requirements.

Business Operations and Portfolio Composition

FFSL operates under the brand name Arvog and focuses primarily on gold loans, which constituted 93% of its total AUM of ₹833 crore as of December 31, 2025. The portfolio composition demonstrates the company's strategic focus on secured lending:

Geographically, the company's operations remain concentrated in four southern states, with Telangana accounting for 53%, Andhra Pradesh 28%, Karnataka 11%, and Tamil Nadu 2% of AUM as of December 31, 2025.

Asset Quality and Risk Management

The company maintains moderate asset quality indicators with improving trends. Gross Stage 3 and Net Stage 3 ratios declined to 0.71% and 0.54% respectively as of December 31, 2025, compared to 0.94% and 0.65% as of March 31, 2025. The secured nature of the portfolio, with 95% secured loans, significantly mitigates credit risk as the company can swiftly enforce and liquidate gold collateral in case of defaults.

Rating Sensitivities and Outlook Factors

CARE Ratings outlined specific factors that could influence future rating actions:

Positive Rating Drivers:

• Significant mobilisation of equity capital for business growth
• Sustained improvement in operational scale while maintaining profitability
• Diversification in resource profile at competitive borrowing costs

Negative Rating Factors:

• Gross non-performing asset ratio exceeding 3% on sustained basis
• Return on total assets falling below 2% consistently
• Overall gearing exceeding 4x

The company's weighted average cost of borrowings for outstanding debt stood at 11.54% as of December 31, 2025, with a moderately diversified resource profile across 24 lenders including banks and NBFCs.

Finkurve Financial Services Limited has approved the issuance of Non-Convertible Debentures worth ₹25 crore through private placement, following its board meeting held on March 20, 2026. The board also approved the relocation of the company's registered office within Mumbai city limits, marking significant operational developments for the financial services company.

Board Meeting Outcomes

The board meeting, which commenced at 11:45 a.m. and concluded at 12:00 p.m. on March 20, 2026, resulted in key approvals for strategic initiatives. The company has informed both BSE Limited and National Stock Exchange of India Limited about these material developments in compliance with regulatory requirements.

NCD Issuance Details

The company will issue 25,000 Non-Convertible Debentures with a face value of ₹10,000 each at par. The debentures carry an attractive coupon rate of 11.16% with monthly interest payments. The securities will be issued through private placement via Electronic Bidding Platform under SEBI regulations, providing a structured mechanism for institutional participation.

Security and Charge Structure

The NCDs will be secured by a first ranking exclusive and continuing charge over certain identified receivables of the company. The hypothecated assets will maintain at least 1.10 times coverage of outstanding amounts including principal, accrued interest, and other payable amounts. Security creation will be completed upfront with charge filing within 30 days from the deemed date of allotment.

Office Relocation

The board approved shifting the registered office within Mumbai's local limits from 202/A, 02nd Floor, Trade World, D-Wing, Kamala Mills Compound, S. B. Marg, Lower Parel West, Mumbai 400013 to Unit No 1, Trade Garden, 1st Floor, Building No. A, Kamala Mills Compound, Lower Parel, Delisle Road, Mumbai 400013, effective March 20, 2026.

Regulatory Compliance

The company maintains transparency by informing stock exchanges about material developments pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The board also approved the Draft Letter of Offer for the NCD issuance under SEBI regulations for non-convertible securities.

Source: None/Company/INE734I01027/df9f5238-b5b3-45fe-9019-241b8daa48d8.pdf