Finkurve Fin. Q2 FY27 Results (NSE: FINKURVE)
Signal: Earnings grew
The read
The operating trajectory remains expansionary, with AUM up 95.4% YoY to ₹1,312 Cr, branches up 32.6% to 122 and average gold loan per branch up 58.0% to ₹10.4 Cr; however, PAT growth of 62.2% lagged total-income growth of 87.8%, while return on average loan assets declined to 3.0% from 3.9%, making monetisation and funding costs the key watchpoints.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹90 Cr | 87.8% | 19.2% |
| Net profit | ₹10 Cr | 62.2% | |
| EPS | ₹0.68 | 61.9% | |
| EBIT margin | 0% |
P&L walk
Total income rose 87.8% YoY and 19.2% QoQ to ₹90 Cr, while PAT increased 62.2% YoY to ₹10 Cr; the profit-growth gap versus income growth indicates that earnings are not keeping pace with the rapid AUM expansion.
Key positives
- AUM increased 95.4% YoY to ₹1,312 Cr, including ₹78 Cr of off-book AUM, sustaining rapid lending scale-up.
- Average gold loan per branch rose 58.0% YoY to ₹10.4 Cr while the branch network expanded 32.6% to 122, indicating higher reported branch productivity.
- Co-lending contribution increased to 6% from 1.6% YoY, broadening the lending and funding model.
- Capital adequacy remained at 28.74%, providing disclosed capital headroom despite declining from 47.1% YoY.
Key concerns
- PAT growth of 62.2% trailed total-income growth of 87.8%, while return on average loan assets declined to 3.0% from 3.9%, pointing to weaker earnings conversion during rapid scale-up.
- Net NPA stood at 2.37% and gross NPA at 2.63%; the filing provides no YoY asset-quality comparison to establish whether credit risk is improving or worsening.
- Capital adequacy fell to 28.74% from 47.1% and debt-to-equity rose to 2.53x from 1.14x, showing materially higher balance-sheet leverage as AUM expands.
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