Akme fintrade (india) Limited has received credit rating assignments from CARE Ratings Limited for its various financial instruments totaling ₹465 crore. The Udaipur-based non-banking financial company informed stock exchanges on February 05, 2026, about the rating actions under SEBI listing regulations.

Rating Details and Assignments

CARE Ratings assigned long-term ratings of CARE BBB+ with stable outlook to the company's major facilities while reaffirming its short-term rating. The rating agency evaluated the standalone credit profile of the NBFC in arriving at these ratings.

Key Rating Strengths

The rating factors in several positive aspects of Akme Fintrade's financial profile. The company's capitalisation position remains adequate, supported by healthy equity infusion of ₹132 crore through its initial public offer in FY25. The NBFC reported a capital adequacy ratio of 51.70% and gearing of 0.97x as of September 30, 2025.

The company demonstrated healthy profitability metrics with profit after tax of ₹33.20 crore in FY25, translating to return on managed assets of 5.70% and return on net worth of 11.10%. This represented an improvement from the previous year's figures of ₹18.50 crore PAT, 4.30% RoTA, and 8.80% RONW in FY24.

Rating Constraints and Challenges

Despite the positive rating assignment, CARE Ratings highlighted several constraints. The company's operations remain geographically concentrated with presence in only five states, with Rajasthan accounting for approximately 63% of overall assets under management as of September 30, 2025.

The NBFC has grown at a modest pace with compound annual growth rate of 19% over the last four financial years, reaching AUM of ₹767 crore as of September 30, 2025. The rating also considers the company's limited resource profile with high reliance on financial institutions and NBFCs at 50% of total borrowings, along with higher cost of borrowing compared to peers.

Financial Performance and Outlook

Akme Fintrade's asset quality metrics showed improvement with gross non-performing assets declining to 2.77% as of March 31, 2025, from 3.63% in the previous year. The company maintains adequate provisions of 51% on its GNPA as of September 30, 2025.

The stable outlook reflects CARE Ratings' expectation that Akme Fintrade will continue maintaining comfortable gearing and liquidity positions while reporting healthy profitability metrics and keeping credit costs under control. The rating agency will monitor the performance of the company's expanding vehicle finance segment, which constituted 75% of total disbursements in the last 1.5 financial years.

Source:

Akme Fintrade (India) Limited's Board of Directors held a meeting on January 19, 2026, at the company's registered office to deliberate on significant corporate matters. The meeting, which commenced at 11:00 hours and concluded at 11:20 hours IST, resulted in key approvals that strengthen the company's financial position and governance framework.

NCD Allotment Details

The board approved the allotment of 30,000 secured Non-Convertible Debentures on a private placement basis. These financial instruments represent a substantial fundraising initiative for the company.

Tenure and Maturity Structure

The NCDs carry a tenure of 36 months from the deemed date of allotment. The structured timeline provides clarity for investors regarding their investment horizon.

Security and Risk Management

The debentures are secured instruments with comprehensive risk mitigation measures. The company will maintain a minimum security cover of 1.10 times at all times during the tenure over loan receivables, both present and future, that fulfill specified eligibility criteria. This security structure provides additional protection for debenture holders.

In case of payment defaults or events of default, the company has committed to pay additional interest of 2.00% per annum above the applicable interest rate on the outstanding principal amount. Similar penalty provisions apply for breaches of covenants, delays in security creation, and delays in executing the Debenture Trust Deed.

Corporate Governance Initiatives

The board approved the draft notice of postal ballot incorporating proposed resolutions along with explanatory statements. This initiative demonstrates the company's commitment to shareholder engagement and transparent decision-making processes. M/s. Ronak Jhuthawat & Co., Practicing Company Secretaries, have been appointed as scrutinizer for the postal ballot, ensuring independent oversight of the voting process.

Instrument Characteristics

The NCDs are characterized as listed, rated, senior, secured, transferable, and redeemable instruments issued to eligible investors on a private placement basis. The debentures will be redeemed in accordance with the Debenture Trust Deed executed between the issuer and the Debenture Trustee, providing structured redemption procedures for investors.