AFIL's Long-Term Bank Facilities Rated CARE BBB+; Stable, NCDs CARE BBB+; Stable, CP CARE A3+
Akme Fintrade (India) Limited (AFIL) has received a CARE BBB+; Stable rating for its ₹250 crore long-term bank facilities and ₹200 crore NCDs. Its ₹15 crore CP is rated CARE A3+. The ratings factor in adequate capitalization and healthy profitability, offset by geographical concentration. AFIL's AUM reached ₹767 crore as of September 30, 2025.
The credit rating impacts the company's ability to raise debt at competitive rates and influences investor confidence. A stable and positive rating is crucial for its borrowing costs and overall financial strategy, making the impact medium.
The credit rating assigned is positive, with a stable outlook for long-term facilities and NCDs, and a reaffirmed rating for Commercial Paper. This indicates a favorable assessment of the company's creditworthiness by the rating agency.
Akme Fintrade (India) Limited (AFIL) has received credit ratings for its various instruments from CARE Ratings Limited (CareEdge Ratings). The long-term bank facilities of ₹250 crore and Non-Convertible Debentures (NCDs) of ₹200 crore have been assigned a rating of CARE BBB+ with a Stable outlook. The Commercial Paper (CP) of ₹15 crore has been reaffirmed with a rating of CARE A3+.
The rating rationale highlights AFIL's adequate capitalization, supported by a ₹132 crore equity infusion via its IPO in FY25, and healthy profitability with improving asset quality. However, the rating is constrained by geographical concentration, with Rajasthan accounting for approximately 63% of its Assets Under Management (AUM) as of September 30, 2025. AFIL's AUM stood at ₹767 crore as of September 30, 2025, exhibiting a CAGR of approximately 19% over the last four financial years. The company's limited resource profile and reliance on financial institutions for borrowings, along with a higher cost of borrowing compared to peers, are also noted.
Key rating sensitivities include significant scale-up of operations while maintaining profitability and capitalisation, and keeping NNPA below 2.0%. Negative factors could arise from moderation in asset quality, a gearing increasing beyond 4x, or deterioration of the liquidity profile.
AFIL's tangible net worth increased to ₹398 crore as of September 30, 2025, supported by capital infusions and internal accruals. The company reported a capital adequacy ratio (CAR) of approximately 51.7% and gearing of 0.97x as of September 30, 2025. The company's profit after tax (PAT) for FY25 was ₹33.2 crore, with a return on managed assets (RoTA) of 5.7% and return on net worth (RONW) of 11.1%.
The company's AUM grew by approximately 80% in the last 1.5 years, with a major share attributed to the vehicle finance segment (75% of total disbursements). The product composition has shifted to 48% vehicle finance and 52% SME/Loan Against Property (LAP) as of September 30, 2025. Gross non-performing assets (NPA) improved to 2.77% as of March 31, 2025, from 3.63% in the previous year.
Liquidity for AFIL is considered adequate, with no cumulative asset liability maturity (ALM) mismatches and cash and bank balances of ₹66 crore as of September 30, 2025.
What to do with a filing like this
Akme Fintrade (India) Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Akme Fintrade (India) Limited. Read the original for the full detail.