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1. At a Glance
U. Y. Fincorp is a Non-Banking Financial Company that made Rs 161.64 Cr in revenue for FY2026 — 45% higher than FY2025 — but the profit doubled (Rs 48.28 Cr vs Rs 11.73 Cr). But wait: the latest quarter (Q4 FY2026) shows the company leaned hard on a one-time securities sale, which inflated the year-end result.
The stock trades at ₹14.42 (as of June 22, 2026), giving it a P/E of 5.69x against a peer median of 22.4x. That low multiple hides a deeper tension: the company is asset-light, equity returns are weak, and growth is choppy.
The company sits on ₹1.13 Cr in cash, has borrowings of ₹3.35 Cr, and no net cash cushion to speak of. It has opened new loan arms under “GrowU” and “FUNDOBABA” to chase smaller ticket sizes, but profitability per rupee remains the real battle.
Margins widened in FY2026 (OPM was 35% vs 16.9% in FY2025), but the title of last quarter should read: “Profit Boom, Questions Pending.”
2. Introduction
U. Y. Fincorp was incorporated in 1993 and plays in the financial services sandbox—specifically non-banking loans and securities trading. It is RBI-registered as a Non Systematically Important NBFC and doesn’t take deposits.
The company lives across three product lines: inter-corporate loans, personal loans, and investments in equity and bonds. Clients include MSP Steel & Power, Parsvnath Developers, and Shalimar Glass—B2B and bulk lending that moved into smaller-ticket retail in 2024.
In April 2025, the company announced a joint venture called FUNDOBABA for small-ticket personal loans (₹25,000–₹5 lakh), partnering with fintech players like Virat India MFI and Shatakshi MFI. A pilot kicked off in Lucknow and Kanpur and is now spreading into Varanasi, Ayodhya, and other UP towns.
The company also exited a big chunk of capital in FY2024: it sold its entire stake in Aristro Capital Markets (ACML, a subsidiary) for ₹81.24 Cr in August 2023. That cash inflow masked operational weakness for a year.
Promoters—Udai Kothari (23.2%), Deepak Kothari (19.7%), and Lotus Capital Financial Services (19.5%)—hold 71.4% of the equity. The stock moved to NSE in October 2024 after 31 years on BSE alone.
3. Business Model: WTF Do They Even Do?
On the surface, UYFL is a moneylender that doesn’t take deposits. It borrows from capital markets, financial institutions, or its own capital, and lends at a spread.
Two streams: Fund-based (loans and deposits) and Fee-based (syndication, advisory). Fund-based is the bulk. The company targets infra, real estate, industrial assets, and now—thanks to GrowU—retail personal loans. Interest margins run 4–6%, operating expenses are tight, and the company keeps the spread as profit.
But here’s the kink: the company is heavily exposed to securities trading and investment income, which doesn’t scale linearly and is lumpy. In FY2026, securities sales drove Rs 1.26 Cr of “Other Income” and, in the quarterly data, a one-time gain in Q4 FY2026 inflated profit by ₹17.44 Cr (the full quarter’s net profit). Strip that out, and the quarter was profit-light.
The loan book sits at Rs 274.75 Lakh as of end-FY2025 (the latest disclosure in the auditor’s notes). That’s roughly 1.7x annual revenue—so the company is asset-heavy but income-light. The working capital cycle has shrunk (from 84.7 days to 28.1 days), which is good for cash, but loan growth is still flat-to-modest.
Expansion plans are there (GrowU, FUNDOBABA, new partnerships), but new lines take time to ramp and margins on retail loans are thinner than bulk loans. The NBFC is trying to build a franchise, but the numbers say it’s still in the shed.
4. Financials Overview
Figures are consolidated, in ₹ crore.
Metric
Latest Year (FY2026)
YoY
Prior Year (FY2025)
Revenue
161.64
+43%
112.99
EBITDA
65.57
+289%
16.94
Net Profit
48.28
+312%
11.73
EPS (Full FY)
2.54
—
0.62
Full Year FY2026:
Revenue jumped 43% on the back of higher loan disbursals and a one-time securities sale. EBITDA (operating profit) came in at Rs 65.57 Cr (using PBT + Interest + Depreciation), a 289% jump—but this number is distorted by the one-time gain. Strip that, and underlying EBITDA growth is modest (mid-to-high single digits on loan interest).
Net profit was Rs 48.28 Cr, up 312% YoY, mostly on the back of securities sale proceeds and lower tax rates. EPS (full year) sits at Rs 2.54, calculated as Net Profit (Rs 48.28 Cr) ÷ Equity Shares (19.02 Cr).
Latest Quarter (Q4 FY2026, ended March 31, 2026):
Q4 delivered Rs 70.39 Cr in revenue (a 4.6x jump from Q4 FY2025’s Rs 15.31 Cr, but heavily boosted by a securities sale). Operating profit was Rs 24.76 Cr and net profit was Rs 17.44 Cr—the highest quarterly profit in at least three years. But again: one-time.
Stripping the one-time items, the quarter’s recurring operating profit was closer to Rs 2–3 Cr, which tracks with prior quarters. The company’s underlying cash generation from lending remains weak.
5. Market Expectations & Historical Multiples
This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.
Metric
Current
5-Year Average
Peer Median
P/E
5.69x
~22x (excl. loss years)
22.4x
EV/EBITDA
4.00x
~15x
—
P/B
0.71x
~2.0x
—
ROE
13.4%
9.3% (5Y avg)
—
ROCE
18.5%
~12%
9.77%
The market currently pays ₹5.69 for every rupee of earnings, a 75% discount to the peer median P/E of 22.4x. Even accounting for UYFL’s lower profitability and volatility, this gap is pronounced.
On book value (P/B), the stock trades at 0.71x, meaning investors price the equity at less than face value.
