Finkurve Financial Services LimitedFinancial ServicesFINKURVE
Q1 FY27 earnings callFinkurve Financial Services Limited
Finkurve focused on strengthening its technology-enabled gold loan franchise amidst regulatory change, delivering strong YoY AUM growth of 135% while emphasizing governance, risk management, and operational discipline.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| AUM Growth (YoY) | 135% | — | |
| Revenue Growth (YoY) | 89% | — | |
| PAT Growth (YoY) | 65% | — | |
| Gross NPA | 0.54% | — | |
| Net NPA | 0.48% | — | |
| Return on Assets (ROA) | 2.9% | — | |
| Return on Equity (ROE) | 9.7% | — | |
| Debt-to-Equity Ratio | 2.9x | — |
TL;DR
- AUM grew 135% YoY; PAT increased 65% YoY.
- Branch network expanded 42% to 118 branches.
- Regulatory changes for gold loans and NBFC middle-layer status led to process and compliance investments.
- Target debt-to-equity ratio of 4x to 4.5x; current ratio is 2.9x.
- Steady-state target ROA of 3% to 3.5% and ROE of 18%.
- Expansion will remain organic, focused on current four states before moving to adjacent regions like Orissa.
Said on the call
“Enduring leadership in lending is not determined by who grows the fastest during favourable periods, but by who continues to execute with consistency when the operating environment becomes more challenging.”
From the Q&A
| Topic | What management said |
|---|---|
| Leverage Target | Targeted debt-to-equity range is 4x to 4.5x, with room for ~Rs 800 crore growth before reaching optimal status. |
| Regulatory Compliance | Implemented new RBI guidelines including tiered LTV for consumption loans; invested in compliance team and software. |
| Expansion Strategy | Will grow organically, focusing on current four southern states before expanding to adjacent regions like Orissa. |
| NIM Trajectory | Expects yields to stabilize around 20-20.5%; cost of funds to decline via co-lending (target 15-20% of book) and potential re-rating; expects NIM expansion. |
| ROA/ROE Target | Steady-state target is 3-3.5% ROA and 18% ROE over the next five years. |
| Growth Sustainability | Guidance is for 50-60% AUM growth in FY27; underlying volume growth (tonnage) was 50% of the YoY increase. |
| Branch Economics | Average AUM per branch is Rs 10.3 crore, target Rs 12-13 crore; new branches breakeven at Rs 5-6 crore AUM in 12-18 months. |
| Competition | Banks operate at lower yields; Finkurve serves 'India 2' customers where differentiation is based on service, product, and post-disbursal service, not price. |
Guidance
- Target debt-to-equity ratio of 4x to 4.5x for FY27.
- AUM growth guidance of 50% to 60% for FY27.
- Target to increase co-lending share to 15-20% of book by end of FY27.
- Steady-state target ROA of 3-3.5% and ROE of 18% over the next five years.
- Average AUM per branch target of Rs 12-13 crore.
Source
Summary written from the transcript filed by Finkurve Financial Services Limited for the call held on 13 Aug 2026; published 20 Aug 2026, 09:55 IST.