Interest Cost Reduction Deleveraging
Expected: Q3 FY26MEDIUM confidence
What: Debenture Interest Rate: 12.25%
Impact: ₹19.98 Cr inflow
India Finsec Ltd: Why Is It Outperforming Nifty 500?
ActiveVery WeakRe-Entry
In , India Finsec Ltd (NBFC - Others) is outperforming Nifty 500 with +9.8% relative strength. Fundamentals: Very Weak.
India Finsec Ltd Key Facts
- PE Ratio
- 37.1x
- Market Cap
- ₹540 Cr
- PAT Growth YoY
- +10%
- Revenue Growth YoY
- +17%
- RS vs Nifty 500
- +9.8%
PB: At PeakStrong Opportunity
What's Happening
💎PB falling while earnings hold — value emerging
👔Promoter stake down 4.5% this quarter
💰Trading 90% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Interest Cost Reduction Deleveraging
Q3 FY26MEDIUM
Key Risks
1. Promoters pledged 84
HIGH2. Historical SEBI investigation into round-tripping of funds
MEDIUMSector-Specific Signals
Interest Income₹20.32 Crnull
Cost of Funds (Debentures)12.25%null
Net Profit Margin16.43%77.72%
Key Numbers
PAT Growth YoY
+10%
Stable
Revenue YoY
+17%
Stable
Price to Book
4.5
Current Price
₹185
Fundamental Score
13/100
Very Weak
3Y PAT CAGR
+65%
Market Cap
540 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are India Finsec Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
What Are the Key Risks for India Finsec Ltd?
Earnings deceleration risks from management commentary
Promoters pledged 84
HIGHTrigger: Promoters pledged 84.16% of their total shareholding, accounting for 55.98% of the company's overall capital, raising governance concerns.
Impact: PAT impact: null
Management view: Shareholders likely await company communications explaining the rationale behind these pledges.
Monitor: regulatory
Historical SEBI investigation into round-tripping of funds
MEDIUMTrigger: Historical SEBI investigation into round-tripping of funds; while the 18-month restraint ended, the legal findings remain on record.
Impact: PAT impact: null
Management view: The company appealed the SEBI order to the Securities Appellate Tribunal.
Monitor: litigation
What Did India Finsec Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹21.59 Cr
YoY +16.5%QoQ +5.04%
Growth was primarily anchored by interest income which contributed over 94% of total operating revenue.
PAT
₹5.05 Cr
YoY +9.7%QoQ -10.18%
Consolidated PAT grew YoY but saw a sequential decline of approximately 10% compared to the previous quarter.
Other Highlights
• Standalone operations reported a net loss of ₹4.10 lakhs.
• Completed ₹19.98 Cr debenture issuance at 12.25% interest rate.
• Promoters pledged 84.16% of their shareholding in March 2026.
What Sector Metrics Matter for India Finsec Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Interest Income
₹20.32 Cr
YoY nullQoQ null
Why: Primary driver of consolidated revenue growth.
Cost of Funds (Debentures)
12.25%
YoY nullQoQ null
Why: New debenture issuance rate.
Net Profit Margin
16.43%
YoY 77.72%QoQ -14.49%
Why: Jumped significantly YoY but fell sequentially.
How Fast Is India Finsec Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +17% | +44% | Stable |
| PAT (Net Profit) | +10% | +65% | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top NBFC - Others Stocks Beating Nifty 500
Frequently Asked Questions: India Finsec Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were India Finsec Ltd's latest quarterly results?
India Finsec Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +9.5% (stable)
- Revenue Growth YoY: +16.5%
- Net Interest Margin: 36.22%
Is India Finsec Ltd's profit growing or declining?
India Finsec Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +9.5% (latest quarter)
- PAT Growth QoQ: -8.8% (sequential)
- 3-Year PAT CAGR: +65.1%
- Trend: Stable — consistent growth pattern
What is India Finsec Ltd's revenue growth trend?
India Finsec Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +16.5%
- Revenue Growth QoQ: +7.0% (sequential)
- 3-Year Revenue CAGR: +44.2%
What is India Finsec Ltd's asset quality trend?
India Finsec Ltd's asset quality trend is insufficient_data.
What is India Finsec Ltd's 3-year profit and revenue CAGR?
India Finsec Ltd's long-term compounding rates
- 3-Year Profit CAGR: +65.1%
- 3-Year Revenue CAGR: +44.2%
Is India Finsec Ltd's growth accelerating or decelerating?
India Finsec Ltd's earnings growth is stable with weakening on a sequential basis.
- YoY Acceleration: -13.3% bps
- Sequential Acceleration: -12.2% bps
- Note: YoY and QoQ trends are diverging — worth monitoring
What is India Finsec Ltd's trailing twelve month (TTM) performance?
India Finsec Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹21 Cr
- TTM PAT Growth: +22.0% YoY
- TTM Revenue: ₹78 Cr
- TTM Revenue Growth: +12.3% YoY
Is India Finsec Ltd overvalued or undervalued?
India Finsec Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 37.1x
- Price-to-Book: 4.5x
What is India Finsec Ltd's current PE ratio?
India Finsec Ltd's current PE ratio is 37.1x.
- Current PE: 37.1x
- Market Cap: 540 Cr
How does India Finsec Ltd's valuation compare to its history?
India Finsec Ltd's current PE is 37.1x.
- Current PE: 37.1x
- Valuation Assessment: Significantly Overvalued
What is India Finsec Ltd's price-to-book ratio?
India Finsec Ltd's price-to-book ratio is 4.5x.
- Price-to-Book (P/B): 4.5x
- Book Value per Share: ₹42
- Current Price: ₹185
Is India Finsec Ltd a fundamentally strong company?
India Finsec Ltd is rated Very Weak with a fundamental score of 12.58/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +9.5% (20% weight)
- PAT Growth QoQ: -8.8% (15% weight)
- Earnings trend: stable (5% weight)
Is India Finsec Ltd debt free?
India Finsec Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹250 Cr
What is India Finsec Ltd's return on equity (ROE) and ROCE?
India Finsec Ltd's return ratios over recent years
- FY2023: ROE 5.0%
- FY2024: ROE 12.0%
- FY2025: ROE 13.0%
Is India Finsec Ltd's cash flow positive?
India Finsec Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-29 Cr
- Free Cash Flow (FCF): ₹-26 Cr
- CFO/PAT Ratio: -161% (weak cash conversion)
What is India Finsec Ltd's dividend yield?
India Finsec Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹185
Who holds India Finsec Ltd shares — promoters, FII, DII?
India Finsec Ltd's shareholding pattern (Mar 2026)
- Promoters: 56.0%
- Public: 44.0%
Is promoter holding increasing or decreasing in India Finsec Ltd?
India Finsec Ltd's promoter holding has increased recently.
- Current Promoter Holding: 56.0% (Mar 2026)
- Previous Quarter: 55.9% (Dec 2025)
- Change: +0.04% (increasing — positive signal)
How long has India Finsec Ltd been outperforming Nifty 500?
India Finsec Ltd has been outperforming Nifty 500 for 2 consecutive weeks, indicating early-stage outperformance.
Is India Finsec Ltd a new momentum entry or an established outperformer?
India Finsec Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for India Finsec Ltd?
India Finsec Ltd has 1 key growth catalyst identified from recent earnings analysis
- Interest Cost Reduction Deleveraging — Securing long-term debt at 12.25% provides capital for lending but at a relatively high cost for an NBFC.
What are the key risks in India Finsec Ltd?
India Finsec Ltd has 2 key risks worth monitoring
- [HIGH] Promoters pledged 84 — Promoters pledged 84.16% of their total shareholding, accounting for 55.98% of the company's overall capital, raising governance concerns.
- [MEDIUM] Historical SEBI investigation into round-tripping of funds — Historical SEBI investigation into round-tripping of funds; while the 18-month restraint ended, the legal findings remain on record.
What is India Finsec Ltd's management guidance for growth?
India Finsec Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
What sector-specific metrics matter most for India Finsec Ltd?
India Finsec Ltd's most important sub-sector-specific KPIs from the latest concall
- Interest Income: ₹20.32 Cr (YoY null) (QoQ null) — Primary driver of consolidated revenue growth.
- Cost of Funds (Debentures): 12.25% (YoY null) (QoQ null) — New debenture issuance rate.
- Net Profit Margin: 16.43% (YoY 77.72%) (QoQ -14.49%) — Jumped significantly YoY but fell sequentially.
Is India Finsec Ltd worth studying for long term investment?
Based on quantitative research signals, here is why India Finsec Ltd may be worth studying
- Earnings growing at +9.5% YoY
What is the investment thesis for India Finsec Ltd?
India Finsec Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +16.5% YoY
- Growth catalyst: Interest Cost Reduction Deleveraging
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Promoters pledged 84
What is the future outlook for India Finsec Ltd?
India Finsec Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Valuation: Significantly Overvalued
- Key Catalyst: Interest Cost Reduction Deleveraging
- Key Risk: Promoters pledged 84
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.