Unifinz Capital India Limited has received an IND BBB-/Stable rating from India Ratings and Research for its non-convertible debentures and bank loan facilities. The rating agency announced this development on December 11, 2025, highlighting the company's adequate profitability and technology-driven growth platform.

Rating Details and Instrument Breakdown

India Ratings has assigned ratings to two key financial instruments of the company:

The rating agency took a standalone view of Unifinz Capital to arrive at these ratings, reflecting the company's current financial position and operational capabilities.

Strong Financial Performance and Growth Trajectory

The company has demonstrated remarkable financial turnaround, transitioning from losses to profitability. Unifinz Capital turned profitable in FY25 with a PAT of ₹200.00 crores, compared to a loss of ₹11.38 crores in FY24. The momentum continued in 1HFY26 with PAT reaching ₹408.60 crores.

The company's disbursement growth has been substantial, with total disbursements reaching significant levels as it scales its digital lending operations.

Technology-Driven Business Model and Market Presence

Operating under the Lendingplate brand, Unifinz Capital functions as a digital lender offering unsecured personal loans primarily to salaried individuals across over 9,000 pin codes in India. The company leverages a technology-driven platform for customer acquisition and credit underwriting, managing the entire loan lifecycle on a real-time basis from underwriting to disbursement.

The business model is characterized by high portfolio churn due to short-tenure loan products, which supports strong fee income and offsets acquisition costs. The company offers two main products:

• Short-Term Personal Loans (STPL): 73% of the book with 20-50 days tenure at 164% interest rate
• EMI Products: Remaining 27% with 2-12 months tenure at 65% interest rate

Customer acquisition occurs through organic channels, performance marketing, lending service providers, and digital aggregators, with conversion rates varying from 6%-13%.

Capital Position and Funding Structure

Unifinz Capital raised approximately ₹543 crores through a preferential issue of warrants during FY25, significantly strengthening its capital base. The company's net worth increased from ₹36.90 crores in FY24 to ₹775 crores in FY25, further rising to ₹1,183.70 crores by end-1HFY26.

The funding profile shows concentration among NBFCs, with 70.8% in term loans from non-bank finance companies and 29.2% in inter-corporate deposits from existing shareholders, carrying a weighted average cost of funds of around 21%.

Asset Quality and Risk Management Challenges

The rating acknowledges inherent vulnerabilities in asset quality due to the unsecured nature of loans extended to borrowers with bureau scores ranging from 500-700. The company faces elevated delinquency levels, with softer bucket (1-89 days past due) delinquency at 21.10% as of September 2025, compared to 18.80% in FY25.

The company maintains 90% provisions on Stage 3 assets and has implemented aggressive write-off policies, with STPL products written off at 90 days and EMI products at 180 days.

Rating Outlook and Monitoring Factors

India Ratings will closely monitor the company's ability to manage the transition in its business model while improving asset quality and maintaining profitability and liquidity. Key positive rating drivers include franchise expansion, comfortable earnings profile, and adequate capitalization. However, challenges include inherent asset quality vulnerabilities, concentrated funding profile, and macro-regulatory risks in the digital lending space.

The rating agency expects continued profitability growth, contingent on Unifinz Capital maintaining effective control over credit costs and fixed costs as it expands operations. The company's management expects leverage ratios to remain below 2.0x over the next six to twelve months.

Unifinz Capital India Limited has announced the resignation of Pawan Kumar Mittal from its Board of Directors. Mittal, who served as a Non-executive and Non-independent Director, will step down effective October 31, 2025, at the close of business hours.

Resignation Details

Key Points

• Mittal submitted his resignation letter on October 25, 2025, providing a week's notice to the company.
• In his resignation letter, Mittal confirmed that there are no material reasons for his resignation other than the personal reasons stated.
• He has requested to be relieved from all duties, obligations, and responsibilities associated with his role as Director, including any committee memberships.
• Unifinz Capital India Limited has informed BSE Limited about the resignation, complying with SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015.

Corporate Governance Implications

The resignation of a board member, especially a non-executive director, can have implications for a company's corporate governance structure. The company will need to ensure that it maintains an appropriate balance of skills and experience on its board following Mittal's departure.

Regulatory Compliance

In line with regulatory requirements, Unifinz Capital India Limited has:

1. Provided details as required under Schedule III- Para A(7B) of Part A of the Listing Regulations.
2. Submitted the resignation letter received from Pawan Kumar Mittal to the BSE.
3. Instructed the Company Secretary and Compliance Officer, Ritu Tomar, to handle the necessary filings and intimations to concerned authorities.

The company's prompt disclosure of this change in directorship demonstrates its commitment to transparency and adherence to regulatory standards.