Finkurve Financial Services Ltd

Record Date for NCD Interest Payments

• INE734I07115 (977877): Quarterly; Record Date 01-Sep-2026; Interest due 16-Sep-2026.
• INE734I07040 (977315): Monthly; Record Date 16-Sep-2026; Interest due 01-Oct-2026.
• INE734I07057 (977317): Monthly; Record Date 16-Sep-2026; Interest due 01-Oct-2026.
• INE734I07065 (977427): Monthly; Record Date 22-Sep-2026; Interest due 07-Oct-2026.
• INE734I07032 (977033): Quarterly; Record Date 15-Sep-2026; Interest due 30-Sep-2026.
• INE734I07099 (977665): Monthly; Record Date 11-Sep-2026; Interest due 26-Sep-2026.
• INE734I07123 (977925): Quarterly; Record Date 13-Sep-2026; Interest due 28-Sep-2026.
• INE734I07073 (977547): Monthly; Record Date 27-Sep-2026; Interest due 12-Oct-2026.

NCD interest payment

• Interest payment made on Aug 25, 2026 for ISIN INE734I07099; amount Rs 21,86,817.90.
• Issue size Rs 25 crore; frequency monthly; record date Aug 11, 2026; due date Aug 26, 2026.
• Last interest payment date Jul 25, 2026; no delay or non-payment.

Financial Performance

• AUM grew 135% YoY.
• Branch network: 83 → 118 as of 30 Jun (42% rise).
• Revenue up ~89% YoY; PAT up ~65% YoY.
• NPAs: gross 0.54%; net 0.48%.
• ROA 2.9%; ROE 9.7%.
• Debt‑to‑equity 2.9x as of 30 Jun.
• Capital adequacy 26.6%.
• Cash Rs 56 cr; treasury Rs 67 cr as of 30 Jun.
• Franklin Templeton subscribed to NCD Rs 50 cr in two tranches.
• Retail bondholders >24,000 as of 30 Jun.
• Onboarded CVR Rajendran as Additional Director; CRO Raju Shah; Head of Compliance Husain Pittalwala.
• Net worth ~ Rs 350 cr; cash position Rs 100 cr; room for co‑lending.

Operating & Strategy Update

• Co‑lending partnership continues to scale; cross‑sell traction growing.
• Strategy unchanged: tech‑enabled, risk‑first gold loan; governance focus.
• Regulatory transition: RBI guidelines driving a more transparent, disciplined environment.
• Leadership strengthened: experienced team across risk, compliance, finance.

Capital and Funding

• Target leverage: 4.0x–4.5x by FY27; co‑lending 15–20% by year‑end.
• Headroom: ~Rs 1,600 cr on‑book; ~Rs 400 cr off‑book; runway ~Rs 800 cr.
• On a base of Rs 1,270 cr, adding ~Rs 700 cr to reach ~Rs 1,900 cr.

Regulatory & Gold‑Loan Dynamics

• Valuation changes: notify customer if valuation differs; valuation certificate maintained.
• LTV segmentation implemented: consumption vs income‑generating loans.
• Consumption LTV tiers: 85, 80, 75; income‑generating LTV per board policy.
• Expansion: four states already covered; plan to grow, then expand to new states.

Market Outlook & Guidance

• Yields stable around 20%; expected to stabilize at 20–20.5%.
• Cost of funds: BBB+ rating now; expected benefit after scale to Rs 2,000 cr; co‑lending 15–20% helps.
• ROA target 3.0%–3.5%; ROE target ~18%.
• Branch economics: average AUM per branch ~Rs 10.3 cr; target Rs 12–13 cr.

Q&A Highlights

• Q&A: Leverage target 4.0x–4.5x by FY27; co‑lending 15–20%.
• Q&A: Headroom ~Rs 800 cr to optimal; on‑book Rs 1,600 cr; off‑book Rs 400 cr.
• Q&A: Expansion remains organic across four states; Oraissa next after four states are developed.
• Q&A: Yields ~20%; cost of funds to fall with higher co‑lending; NIM to rise.
• Q&A: ROA target 3%–3.5%; ROE ~18%.
• Q&A: Branch productivity: avg AUM per branch ~Rs 10.3 cr; target Rs 12–13 cr.
• Q&A: Gold price declines correlate with slower growth; ticket sizes may shrink in near term.
• Q&A: 'We really don't comment on what happens in the share prices.'

Risks & Watchpoints

• Regulatory changes remain ongoing; framework evolving; compliance burden increases.
• Gold price volatility could impact ticket sizes and growth pace in near term.

Meeting Details

• Date and time: August 13, 2026 at 05:00 P.M.
• Type and mode: earnings call; audio recording (virtual).
• Organizer: Company-organized earnings call by Finkurve Financial Services Limited.
• Purpose: discuss business performance and results for the quarter ended June 30, 2026.
• Recording availability: audio recording is available; transcript/presentation may be released.

Financial highlights

• AUM up 134.5% YoY to INR 1,270.4 Cr (incl. off-book INR 38 Cr).
• Total income rose 89.37% YoY to INR 75.82 Cr.
• PBT rose to INR 11.21 Cr; PAT to INR 8.44 Cr.
• Basic EPS stood at INR 0.60.
• ROA 2.9%; ROE 9.7%; CAR 26.6%; Debt/Equity 2.9x.
• Active GL customers stood at 31,522 as at 30 Jun 2026.
• Avg. Gold Loan per Branch 10.3 INR Cr.

Governance and strategic updates

• Franklin Templeton became first AIF investor via INR 50 Cr NCD.
• Appointed Rajendran Chinna Veerappan as Additional Director.
• Appointed Raju Shah as Chief Risk Officer.
• Appointed Husain Pittalwala as Head of Compliance.

Business Overview

• NBFC focused on gold-backed lending via Augmont ecosystem and Arvog platform.
• Strategic shift toward retail gold loans with Godrej Finance co-lending under RBI framework.
• Promoter-led, tech-enabled platform leveraging gold ecosystem for formal credit access.

Operational Highlights

• Q1 FY27 AUM at ₹1,270.4 Cr, up 134.5% YoY.
• Gold Kgs under management: 1,167.5 kg, up 46.6% YoY.
• Branches: 118; Active customers: 31,522.
• Co-lending partnership with Godrej Finance to scale gold loans.

Financial Performance

• Total revenue from operations (Q1 FY27): ₹75.10 Cr, up 11.5% QoQ.
• PAT (Q1 FY27): ₹8.44 Cr; QoQ growth 4.95%.
• Interest income (Q1 FY27): ₹74.79 Cr; FY26: ₹204.35 Cr.
• Total income (Q1 FY27): ₹75.82 Cr; FY26: ₹209.86 Cr.
• Borrowings total ₹835.93 Cr; debt security ₹293.25 Cr; other borrowings ₹542.68 Cr.

Capital Structure & Liquidity

• Cash and cash equivalents ₹102.12 Cr; Loans ₹1,070.34 Cr.
• Net worth ₹354.4 Cr; Equity share capital ₹14.01 Cr.
• NNPA steady at 0.48% in Q1 FY27.

Strategic Priorities & Outlook

• Scale retail gold lending via tech-enabled origination and centralized risk analytics.
• Expand Pan-India reach with rapid branch rollout (30-45 days from planning to launch).
• Strengthen co-lending partnerships, including Godrej, to accelerate portfolio growth.

Risks & Governance

• Risk management: capital protection, fraud controls, and continuous portfolio surveillance.

Governance & Leadership

• Promoter leadership with experienced board; key executives include CEO, CFO, CRO, and Company Secretary.

NCD proceeds utilization

• Funds raised: Rs 199 crore via NCDs on May 14, 2026; June 16 & 29, 2026.
• No deviation or variation in use of funds; no change in original object.
• Annexure reviewed by Audit Committee at meeting on August 13, 2026.
• Report for quarter ended June 30, 2026 filed.

Security cover details

• Security cover certificate for listed NCDs as at 30 June 2026 issued by auditors.
• Asset cover at 110% of outstanding principal: INR 48,900 Lakhs; accrued interest INR 412.37 Lakhs.
• Outstanding secured debt: INR 49,312.37 Lakhs, excluding IND-AS amortization of INR 795.01 Lakhs.
• Compliance with covenants as of June 30, 2026 confirmed.
• Auditor: Ladha Singhal & Associates; certificate dated 13 August 2026.
• Certificate prepared for submission to Debenture Trustees and stock exchanges.
• Management responsible for data; auditor's role to verify Annexure A.
• Conclusion: asset and debt figures in Annexure A are true and correct.

Fund-raising details and deviation status

• Purpose: Declaration under Reg 32(1) confirming no material deviation in funds raised.
• Mode of fund raising: Preferential issue of equity shares and share warrants via private placement.
• Amount raised and dates: 141.50 crore; raised on May 21 and May 27, 2025.
• Monitoring agency: CRISIL Rating Limited; applicable for the issue.
• Deviation: No deviation in use of funds as of June 30, 2026.
• Audit Committee review: Statement annexed; reviewed and noted at meeting on August 13, 2026.
• Total funds raised: 141.50 crore; utilised to date: 111.50 crore.
• Remaining to be received: 30.00 crore; utilisation status pending receipt.
• Original object unchanged; no modification reported due to non-deviation.