Finkurve Q4 FY26: Crossing 1,000 Crore AUM, Scaling Gold Loans With Tight Risk Controls

Finkurve Financial Services Limited closed Q4 FY26 with a clear milestone: Assets Under Management (AUM) crossed 1,000 crore and ended the quarter at 1,096 crore. The company’s investor deck and earnings call positioned this as the outcome of a retail-focused pivot toward gold loans, faster branch rollout, and tighter operating controls.

The quarter also highlighted the company’s approach to building a more institutional NBFC platform. Management spoke about rating upgrades, diversified funding access, and the transition to a Middle Layer NBFC framework. That transition came with a quantifiable earnings impact: Q4 FY26 reported PAT of 8.0 crore included an incremental provision of 1.22 crore pre-tax due to higher standard asset provisioning norms.

Growth was led by branches and customer additions

The operating indicators in the presentation show a rapid expansion on multiple fronts. Branches increased to 105 in Q4 FY26 from 73 in Q4 FY25. Active gold loan customers rose to 28,506 from 17,138 over the same period. Gold kilograms under management increased to 1,076.2 kg.

In the earnings call, management reiterated that branch expansion remains a core growth lever. The CEO stated that opening a new branch typically takes 30 to 45 days and that the primary constraint is manpower rather than technology or physical infrastructure. In response to an investor question, management indicated a guidance of about 50% expansion in the branch network for the current financial year, implying a move from 105 branches toward 150 to 160 branches.

Portfolio quality improved sharply, helped by collections discipline

The quarterly portfolio metrics reflected improved collections and very low reported delinquencies. Collection efficiency increased to 98% in Q4 FY26 from 83% in Q4 FY25. GNPA and NNPA were disclosed at around 0.1% in Q4 FY26, with the deck citing NNPA at 0.09%.

Management also addressed gold price risk. The CEO stated that the average portfolio LTV was around 72% at year-end, consistent with the deck’s 72.2% LTV for Q4 FY26. Management described stress testing the portfolio for a 10% to 15% gold price fall and referenced an earlier sharp correction where margin calls were managed without meaningful stress.

Funding scaled up, with leverage rising alongside

Funding and leverage were a major theme. The deck showed a diversified borrowing mix: term loans at 44.9%, NCDs at 35.5%, and OD/WCDL/ICDs at 19.7%. Cost of borrowing was presented as 11.2% for FY26, improving from 11.5% in FY25.

Balance sheet data shows borrowings increased materially year-on-year. Debt to equity rose to 2.42x in Q4 FY26. The CFO stated this still leaves room versus industry averages and noted a strong liquidity buffer of 102 crore in cash and cash equivalents as of March 31, 2026.

Financial summary (as disclosed)

Metric	Q4 FY26	Q4 FY25	FY26	FY25
Total income (INR crore)	69.21	40.43	209.86	141.09
Total revenue from operations (INR crore)	67.33	40.28	207.22	140.51
Profit after tax (INR crore)	8.04	3.91	26.03	17.43
AUM (INR crore)	1,096.1	439.5	1,096.1	439.5
Branches	105	73	105	73
NNPA (%)	0.09	0.65	0.09	0.65

Notes: AUM includes off-book AUM as per the presentation. Q4 FY26 PAT includes an incremental provision of 1.22 crore pre-tax due to MLNBFC standard asset provisioning change.

Co-lending and cross-sell: early but visible steps

Management highlighted a co-lending partnership with Godrej, with approximately 21 crore of AUM already built under this arrangement. In Q&A, management explained that co-lending contribution is still small because the partnership went live only in the last quarter and the industry required time to implement CLM-1.

The company also spoke about building a cross-sell and fee income layer around the core gold loan franchise. The Arvog Wellness program was launched and over 150 policies were issued in the initial rollout. Management also mentioned the introduction of another cross-sell product, with details expected in coming quarters.

What investors should track from here

The company’s near-term execution priorities are straightforward based on disclosed commentary: branch expansion, calibrated co-lending scale-up, and improving the borrowing mix to manage cost of funds. At the same time, certain operating indicators will remain key watch points.

First, leverage is rising as the loan book scales, even though CRAR remains at about 31% in Q4 FY26. Second, the portfolio LTV moved higher to 72.2% in Q4 FY26, which increases sensitivity to gold price corrections. Third, the P&L shows large fees and commission expenses relative to fee income. Management attributed this to partner payouts in the personal loan business and accounting regrouping of fees into interest income, but the line item will remain important to monitor as the mix evolves.

The underlying message from management was consistent: growth will be pursued but not at the cost of asset quality. The company reiterated AUM growth guidance of 40% to 50% and longer-horizon aspirations of reaching about 5,000 crore AUM by 2029, while targeting steady-state profitability metrics over a multi-year horizon.