Akme Fintrade's Rating Lifted to ACUITE A- on Strong Performance

Acuité Ratings has upgraded Akme Fintrade India Ltd (AFIL) to 'ACUITE A-' for its long-term and short-term debt facilities, citing the non-banking finance company's (NBFC) robust growth and financial improvements. The upgrade impacts approximately ₹855 crore of the company's outstanding debt instruments.

The rating agency highlighted AFIL's substantial loan portfolio expansion as a key driver. The company's assets under management (AUM) grew by roughly 39% between March 31, 2025, and December 31, 2025. AFIL also reported a Profit After Tax (PAT) of ₹30.05 crore for the nine months ending December 31, 2025, and its net worth stood at ₹412.31 crore as of that date.

What the Upgrade Means
This enhanced credit rating is expected to bring significant advantages to Akme Fintrade. It should lead to lower borrowing costs, reducing its capital raising costs. The upgrade also bolsters the company's financial flexibility and enhances its access to capital markets. This signals increased investor confidence in AFIL's financial health.

Company Background
Established in 1996, Akme Fintrade India Ltd operates as an NBFC, primarily serving lower and middle-income groups in rural and semi-urban areas with vehicle and business financing. The company has overcome past rating challenges, including a June 2022 period where its rating was flagged as 'Issuer not corporating' with a lower 'ACUITE BB+'. Its long-term rating was 'ACUITE BBB+ | Stable' until August 2025. A key development was its Initial Public Offering (IPO) in FY25, which significantly boosted its net worth and overall financial profile.

Key Risks
Despite the upgrade, key risks remain. Akme Fintrade's Gross Non-Performing Assets (GNPA) saw a slight rise to 2.94% as of December 31, 2025, up from 2.77% on March 31, 2025. Geographical concentration is a key concern, with approximately 61% of AFIL's loan portfolio in Rajasthan as of December 31, 2025.

Competitive Landscape
Akme Fintrade operates within a competitive NBFC sector alongside major players like Bajaj Finance, Shriram Finance, and Cholamandalam Investment and Finance Company. While AFIL demonstrates robust AUM growth, peers such as Bajaj Finance manage substantially larger AUMs, highlighting scale differences in the market.

Future Focus Areas
Investors and analysts will be tracking Akme Fintrade's progress on several fronts:

• Sustaining strong loan portfolio growth and disbursement momentum.
• Effectively managing asset quality and keeping GNPA levels in check.
• Implementing strategies for geographical diversification to reduce reliance on Rajasthan.
• Maintaining or improving profitability metrics alongside expansion.
• Demonstrating its enhanced debt servicing capability with its increased borrowing quantum.