Akme Fintrade Q1 FY27 Results (NSE: AFIL)
Signal: Earnings grew
The read
Akme Fintrade delivered a strong Q1FY27 with total income up 45.5% YoY to ₹5,638 L and PAT up 34% to ₹1,157 L, driven by continued AUM expansion partly funded by co-lending arrangements (₹19 Cr outstanding). However, EPS growth (15%) materially lagged PAT growth (34%) due to massive equity dilution from warrant conversion (13 Cr shares allotted this quarter). Asset quality remains healthy with GNPA at 1.41% and NNPA at 0.53%, and CRAR at a robust 46.37%. The transition to NBFC-ML under RBI's SBR framework and the appointment of a COO signal organizational scaling. The key concern is the rapid increase in finance cost (+87% YoY), which is compressing operating margins despite revenue growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹56.39 Cr | 45.54% | 32.48% |
| EBIT | ₹14.63 Cr | 40.19% | |
| Net profit | ₹11.57 Cr | 34.05% | |
| EPS | ₹0.23 | 15.0% |
P&L walk
Standalone-only filer (no subsidiaries) — this walk is on standalone basis only.
Key positives
- Total income grew 45.5% YoY to ₹5,638 L, accelerating from 32% QoQ
- PAT grew 34% YoY to ₹1,157 L, marking consistent profitability
- Asset quality remains strong: GNPA 1.41%, NNPA 0.53%, well within regulatory limits
- CRAR of 46.37% provides significant headroom for growth
- AUM crossed ₹900 Cr (inferred from loan book plus off-book AUM), supported by co-lending portfolio of ₹19 Cr
Key concerns
- EPS growth of only 15% YoY vs PAT growth of 34% reflects massive equity dilution (13 Cr shares from warrant conversion)
- Finance cost surged 87% YoY, outpacing revenue growth and compressing operating margins
- Net profit margin declined 181bps YoY to 20.5% as cost growth outstripped income growth
- Credit cost grew 49% YoY in absolute terms though GNPA remains stable
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