Finkurve Financial Services Limited (ISIN: INE734I01027), a tech-first gold loan NBFC, has reported strong performance for the first quarter, demonstrating significant growth across key financial metrics.

Strong Asset Under Management Growth

The company's Asset Under Management (AUM) saw a remarkable year-over-year increase of 66.01%, reaching INR 541.78 crores, up from INR 326.36 crores in the same quarter of the previous year. This growth includes an off-book AUM of INR 14.25 crores.

Financial Performance Highlights

• Total income rose by 40.47% year-over-year to INR 40.04 crores.
• Net interest income increased by 29.47% to INR 19.52 crores.
• Profit Before Tax (PBT) grew by 15.88% to INR 6.83 crores.
• Profit After Tax (PAT) improved by 16.06% to INR 5.09 crores.
• Basic Earnings Per Share (EPS) increased by 8.57% to INR 0.38.

Operational Metrics

• The company's branch network expanded by 29.68% year-over-year, growing from 64 branches to 83 branches.
• Disbursements reached INR 796.61 crores during the quarter.
• Average gold loan per branch increased by 40.78% to INR 5.8 crores.

Asset Quality and Financial Stability

Finkurve Financial Services maintained healthy asset quality with a gross Non-Performing Asset (NPA) ratio of 0.37% and a net NPA ratio of 0.17%. The company's capital adequacy ratio remained robust at 57.31%, indicating strong financial stability.

Strategic Developments

During the quarter, Finkurve successfully raised approximately INR 111.50 crores through a preferential issue of equity shares and warrants to both promoters and non-promoters. This capital infusion aligns with the company's objectives to scale operations, enhance its technology-driven phygital model, and expand its market presence in India's evolving gold loan industry.

The company also marked its entry into Tamil Nadu by launching its first branch in Chennai, representing a significant milestone in its expansion strategy.

Management Commentary

Amit Shroff, Chief Executive Officer of Finkurve Financial Services, commented on the performance: "This quarter has begun on a strong note marked by robust growth, strategic expansion, and continued progress towards our vision of becoming one of the leading players in India's gold loan sector. As we move ahead, our focus remains on delivering superior customer experiences, leveraging technology for operational excellence, and scaling responsibly to create long-term value for all stakeholders."

Financial Snapshot

Finkurve Financial Services Limited, also known by its brand name Arvog, continues to strengthen its position in the gold loan NBFC sector, leveraging technology and strategic expansion to drive growth and create value for its stakeholders.

Finkurve Financial Services Limited has taken a significant step to bolster its financial position by approving the issuance of Non-Convertible Debentures (NCDs) worth Rs 22.00 crores. The decision was made during a board meeting held on August 11, 2025, as part of the company's strategy to raise funds through private placement.

Key Details of the NCD Issuance

The company plans to issue 2,200 NCDs, each with a face value and issue price of Rs 1.00 lakh. These debentures come with the following features:

• Coupon Rate: 11.75% per annum
• Tenure: 36 months
• Allotment Date: August 13, 2025
• Maturity Date: August 13, 2028
• Listing: Proposed to be listed on BSE Limited
• Security: Secured against the company's receivables equivalent to 1.10x of the gold loan AUM

Interest Payment Schedule

The interest payments for these NCDs are scheduled on a quarterly basis, with the first payment starting from March 31, 2025. Subsequent payments will be made on June 30, September 30, and December 31 of each year until maturity.

Default Provisions

In the event of a payment default, Finkurve Financial Services has agreed to pay an additional interest of 1.00% per annum over the base interest rate on the defaulted amounts. This additional interest will apply from the date of the default until it is cured or the obligations are repaid, whichever comes first.

Regulatory Compliance

The issuance of these NCDs is in compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021. The company has also adhered to the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, providing transparent communication to its stakeholders.

Conclusion

This move by Finkurve Financial Services to raise Rs 22.00 crores through NCDs demonstrates the company's proactive approach to capital management. The secured nature of the debentures, coupled with the attractive interest rate, may appeal to potential investors looking for fixed-income opportunities in the current market environment.