Akme Fintrade (India) Limited, a leading RBI-registered Non-Banking Finance Company (NBFC), has reported strong financial results for the first half of fiscal year 2026, showcasing significant growth across key metrics.

Financial Highlights

The company's Assets Under Management (AUM) reached ₹767.46 crores in H1 FY26, marking a substantial 54.80% year-on-year growth. This impressive expansion was accompanied by a 135.35% increase in disbursements, which rose to ₹227.62 crores.

Akme Fintrade's financial performance for H1 FY26 demonstrates robust growth:

The company's earnings per share (EPS) showed a modest increase of 2.20% year-on-year, reaching ₹0.46 in H1 FY26.

Loan Portfolio and Asset Quality

Akme Fintrade's loan portfolio exhibited strong growth across various segments:

The company maintained a strong focus on asset quality, with Gross Non-Performing Assets (GNPA) at 2.96% and Net Non-Performing Assets (NNPA) at 1.43% for H1 FY26, showing an improvement from the previous year.

Strategic Initiatives and Future Outlook

Akme Fintrade has outlined several strategic initiatives to drive future growth:

1. Vehicle Loan Focus: The company is capitalizing on the growing two-wheeler financing market, which is expected to expand by 18%-19% in FY26.

2. Insurance Distribution: Having received an IRDAI license in November 2025, Akme Fintrade plans to diversify its revenue streams by entering the insurance sales and distribution segment.

3. Geographical Expansion: The company aims to strengthen its presence in Tier II and Tier III markets, leveraging its current network of 29 branches across five states.

4. Product Diversification: Plans are in place to explore opportunities in gold loans, further expanding the company's product portfolio.

5. Digital Transformation: Akme Fintrade is adopting new technologies to enhance its operational efficiency and customer experience.

Management Commentary

The company maintains its expansion plans, targeting an AUM of ₹950 crores for FY26. This growth strategy is supported by the diversification into gold loans and insurance distribution, as well as the strengthening of its vehicle loan portfolio.

Akme Fintrade's management expressed confidence in the company's ability to capitalize on the favorable interest rate outlook and reviving rural demand, which are expected to boost credit growth in the coming quarters.

Conclusion

Akme Fintrade (India) Limited's strong H1 FY26 performance, coupled with its strategic initiatives and expansion plans, positions the company for continued growth in the NBFC sector. The focus on vehicle loans, entry into insurance distribution, and expansion in Tier II and Tier III markets are expected to be key drivers of the company's future success.

Akme Fintrade (India) Limited has completed the allotment of ₹20 crore worth of non-convertible debentures (NCDs) following its Board of Directors meeting held on December 22, 2025. The NBFC successfully allotted 20,000 listed, rated, senior, secured, transferable, redeemable NCDs through private placement.

NCD Allotment Details

The Board meeting, which commenced at 10:30 AM and concluded at 11:00 AM, approved the final allotment terms for the debenture issuance.

Security and Coverage Terms

The company will maintain a minimum security cover of 1.10x (one decimal one zero times) at all times during the tenure of the debentures. This security cover will be maintained over loan receivables, present and future, of the issuer that fulfill specific eligibility criteria.

Default and Penalty Provisions

The debenture terms include comprehensive penalty structures for various scenarios:

Payment Default

In case of payment default or any Event of Default, the company will pay an additional interest rate of 2.00% per annum above the applicable interest rate on the outstanding principal amount until the default is cured.

Breach of Covenants

For defaults in performance of covenants and undertakings, including financial covenants, an additional interest of 2.00% per annum over the coupon rate will be payable for the defaulting period. The penalty must be paid within 30 calendar days from the date of breach.

Security Creation Delays

If the issuer fails to execute the Hypothecation Agreement and perfect security within prescribed timelines, additional interest of 2.00% over the interest rate will be applicable. Additionally, if the Debenture Trust Deed is not already executed, the company shall execute it within SEBI prescribed timelines or pay penalty interest of at least 2.00% per annum over the coupon rate.

Company Performance Context

As per the company's recent financial results for the half-year ended September 30, 2025, Akme Fintrade demonstrated strong growth across key metrics:

The successful NCD allotment provides the company with additional capital to support its lending activities in rural and semi-urban markets, where it primarily offers vehicle finance and business loans. The company, incorporated in 1996 and listed on both BSE and NSE, continues to expand its presence in the NBFC sector with this latest fundraising initiative.