Veefin Solutions Reports Strong FY26 Results Amid Epikindifi Deconsolidation

Veefin Solutions Ltd announced its audited financial results for the fiscal year ended March 31, 2026. The company reported a significant 97% year-on-year jump in consolidated profit after tax, reaching ₹31.96 crore.

This growth was propelled by a substantial increase in consolidated revenue from operations, which climbed to ₹345.13 crore for FY26, compared to ₹80.44 crore in the previous fiscal year.

The company's statutory auditors, ADV & Associates, issued an unmodified opinion on both standalone and consolidated financial statements, indicating clean accounts.

A key development noted is the deconsolidation of Epikindifi Software & Solutions Private Limited, effective December 31, 2025, due to reassessed control and promoter disputes.

Impact of Growth and Deconsolidation

The strong performance in consolidated revenue and profit highlights the robust underlying growth of Veefin's core digital lending technology business.

However, the deconsolidation of Epikindifi will alter the structure and reporting of its consolidated financials going forward. Investors will need to focus on the standalone performance and the reasons behind the control reassessment.

Veefin's Business and Epikindifi Dispute

Veefin Solutions is a technology company that provides digital lending solutions and software to financial institutions, including banks, non-banking financial companies (NBFCs), and fintech firms.

The company reassessed its control over Epikindifi Software & Solutions Private Limited, a subsidiary, due to disputes with its promoters concerning governance and control rights.

This reassessment led to Epikindifi being deconsolidated from December 31, 2025, with the investment now accounted for differently.

What Changes Now

• Consolidated financial statements will no longer include Epikindifi's financials from the current reporting period onwards.
• Investors will need to analyze Veefin's standalone performance and the financial health of its remaining consolidated entities more closely.
• The company's reported consolidated numbers will reflect this structural change.
• Governance disputes highlight potential operational risks within subsidiaries or acquired entities.

Risks to Watch

• Disputes over governance and control rights with promoters of associated entities pose an operational and financial risk.
• Auditors' consolidated opinion relies partly on reports from other firms for subsidiaries, indicating indirect assurance for certain figures.

Competitor Snapshot

Veefin Solutions competes in the digital lending technology space. Its peers include:

• Nucleus Software Exports Ltd, which offers comprehensive software solutions for the banking, financial services, and insurance (BFSI) sector, including lending and transaction banking.
• Infrasoft Technologies Ltd, another player providing IT services and solutions tailored for BFSI clients, focusing on areas like core banking and lending platforms.

Key Financial Metrics

• Consolidated Revenue from Operations stood at ₹345.13 crore for FY2026, a significant rise from ₹80.44 crore in FY2025.
• Consolidated Profit After Tax (PAT) was ₹31.96 crore in FY2026, compared to ₹16.26 crore in FY2025.
• Standalone Revenue from Operations reached ₹70.74 crore in FY2026, up from ₹37.32 crore in FY2025.
• Standalone Profit After Tax (PAT) was ₹18.20 crore in FY2026, an increase from ₹11.15 crore in FY2025.

What to Track Next

• Future guidance on consolidated revenue and profit growth, considering the deconsolidation.
• Management commentary on the resolution of governance disputes related to Epikindifi.
• The financial performance of the standalone business and its contribution to overall profitability.
• Any strategic updates regarding future acquisitions or partnerships.
• The potential impact on future consolidation choices for other entities.