Akme Fintrade (India) Limited has received reaffirmation of its IVR BBB+ credit rating with stable outlook from Infomerics Ratings for its comprehensive portfolio of banking facilities and debt instruments. The rating covers facilities totaling ₹450.00 crores, reflecting the non-banking financial company's strong operational performance and financial stability.

Rating Portfolio and Facility Details

The rating reaffirmation encompasses multiple facility types across the company's financing operations:

The rating reflects significant enhancements in term loan facilities from ₹49.87 crores to ₹93.80 crores and proposed facilities increasing from ₹56.13 crores to ₹105.00 crores, demonstrating the company's expanding operational capacity.

Strong Financial Performance Drives Rating

Akme Fintrade's financial performance in FY25 showcased robust growth across key metrics. Net interest income increased by approximately 52% year-on-year to ₹62.85 crores, supported by growth in the on-book loan portfolio. The net interest margin expanded significantly to 13.15% in FY25 from 11.24% in FY24, reflecting improved net spreads and operational efficiency.

Profitability indicators strengthened considerably, with return on total assets increasing to 6.10% in FY25 from 4.58% in FY24. Operating efficiency improved as reflected in the reduction of the cost-to-income ratio to 31.60% from 34.86%, driven by rationalization of operating expenses.

Assets Under Management Growth Trajectory

The company demonstrated consistent growth in assets under management, with total AUM increasing by approximately 45% year-on-year to ₹618.61 crores as of FY25. This comprised on-book AUM of ₹581.09 crores and off-book AUM of ₹37.52 crores. The expansion continued in 8MFY25, with total AUM rising to ₹833.33 crores, driven by higher disbursements across vehicle loan and SME/LAP loan segments.

The growth trajectory is supported by capital infusion through a preferential issue of fully convertible warrants aggregating approximately ₹43.00 crores, of which ₹8.66 crores was infused in FY25, with the balance ₹34.63 crores expected by end of FY26.

Capital Adequacy and Risk Management

Akme Fintrade maintains comfortable capitalization levels with a capital to risk-weighted assets ratio of 48.80% as of November 30, 2025, significantly above minimum regulatory requirements. The company's tangible net worth increased to ₹380.10 crores in FY25 from ₹222.25 crores in FY24, driven by capital raising activities and steady profit accretion.

Asset quality metrics show gradual improvement, with gross non-performing assets declining to 2.94% and net NPAs at 1.52% as of November 30, 2025. Collection efficiency remained satisfactory at approximately 96% for the 12 months ended November 2025, with on-time portfolio at around 92%.

Rating Outlook and Key Sensitivities

Infomerics expects the stable outlook to continue based on sustained AUM growth and improvement in overall profitability and asset quality levels while maintaining comfortable capitalization. The rating agency identified substantial scaling up of AUM above ₹1,000 crores through geographical diversification as a potential upward factor, while deterioration in AUM impacting capital position or adverse collection efficiency movements could pressure ratings downward.

Akme Fintrade (India) has announced the approval of a significant debt fundraising initiative through the issuance of non-convertible debentures. The company has approved raising ₹30.00 crores through senior secured listed non-convertible debentures via private placement.

Debenture Issuance Details

The approved debt instrument carries specific structural features designed to provide security to investors while enabling the company to access capital markets.

Security and Listing Framework

The debentures are structured as senior secured instruments, providing priority in repayment and collateral backing for investors. The minimum security cover of 1.10X ensures that the underlying assets securing the debentures maintain a value at least 1.10 times the outstanding debt amount.

The company has planned to list these debentures on the National Stock Exchange, which will provide liquidity to investors and enable secondary market trading of the debt instruments.

Capital Market Strategy

This private placement approach allows Akme Fintrade (India) to raise funds from select institutional and qualified investors without going through a public offering process. The senior secured nature of the debentures, combined with the security cover requirement, is designed to make the offering attractive to debt investors seeking secured investment opportunities.