Avonmore Capital & Management Services Ltd Q2 FY25: Profit Shrinks 74.6%, ₹70.8 Cr MTM Loss, and a Rs 74.8 Cr Preferential Drama—But Is This NBFC’s Script Finally Getting Interesting?
1. At a Glance
Avonmore Capital & Management Services Ltd—the NBFC that does everything from corporate loans to healthcare diagnostics (yes, even eye treatment)—has delivered one of those quarters where you wonder if the Excel sheet crashed halfway through the CFO’s presentation. For Q2 FY25, revenue stood at ₹36.9 crore, down 32% QoQ, while PAT collapsed 74.6% QoQ to ₹6.19 crore. The OPM somehow staged a recovery to 19.9%, but even that looked like a temporary caffeine rush.
At a market cap of ₹505 crore and a current price of ₹17.9, the stock trades at a P/E of 35.9x, which is higher than most decent banks that actually, you know, lend money. The promoters still hold 58.5%, no pledges, and debt is a light ₹25.5 crore (D/E 0.07). ROE stands at 8.6%, ROCE at 10.6%, and the company boasts a current ratio of 2.38—meaning liquidity isn’t the issue, clarity might be.
With NSE listing approval, buybacks, acquisitions, and a massive MTM loss of ₹70.79 crore announced recently, Avonmore’s recent chapters read like a finance thriller co-written by an investment banker and a Bollywood scriptwriter.
2. Introduction
Avonmore Capital is like that friend who’s been “into many things” since college but still can’t explain what exactly they do at work. From loans to wealth advisory, equity broking to healthcare diagnostics—this company’s business model looks like a buffet menu. Founded in 1992 and now operating under the NBFC umbrella, Avonmore Capital & Management Services Ltd (ACMSL) sits quietly in the financial alley, wearing a serious suit but juggling a dozen side hustles.
In FY25, the company was busy—buyback, preferential issues, NSE listing, acquisitions, and a full-fledged scheme of arrangement involving demergers and amalgamations that made even CA aspirants nervous. You’d think an NBFC would focus on lending, but Avonmore apparently prefers storytelling through SEBI filings.
Over the past three years, sales grew at 28.8% CAGR, while profits dipped 3.7% CAGR, suggesting that while the top line is ambitious, the bottom line is still catching up on caffeine. The 5-year stock return of 64.2% looks glamorous until you realize the last one year saw a -1.7% return—pretty much what your fixed deposit earns before tax, except with less stress.
3. Business Model – WTF Do They Even Do?
Okay, deep breath. Avonmore isn’t your regular NBFC. It’s more like a “financial services conglomerate” that dipped its toes in almost every pond that sparkled.
Here’s the buffet:
Loans & Advances: Basic NBFC stuff—corporate loans and short-term funding.
Advisory Services: Consultancy in debt/equity markets, infrastructure, and M&A.
Wealth Management & Broking: Sub-broking, portfolio management, and distribution.
Private Equity & Investment Activities: A major segment, accounting for ~60% of FY23 revenue.
FY23 segment breakup says it all: Investment activities (60%), Advisory fees (24%), Wealth/Broking (5%), Finance (4%), and Healthcare (2%).
Basically, if you squint hard enough, Avonmore looks like a mashup of Edelweiss, IIFL, and Dr. Agarwal’s Eye Hospital. And just when you think it’s too scattered, they go and buy Almondz Finanz Ltd—another NBFC under their own group. It’s like merging your alter ego.
4. Financials Overview
Let’s crunch Q2 FY25 numbers and contrast them with Q2 FY24 and Q1 FY25.
Metric
Q2 FY25
Q2 FY24
Q1 FY25
YoY %
QoQ %
Revenue (₹ Cr)
36.9
54.3
55.5
-32.0%
-33.6%
EBITDA (₹ Cr)
7.36
22.64
6.32
-67.5%
16.4%
PAT (₹ Cr)
6.19
18.87
8.60
-67.2%
-28.0%
EPS (₹)
0.16
0.61
0.20
-73.8%
-20.0%
The table screams volatility louder than a smallcap WhatsApp group on results day. Revenue halved YoY, profit nosedived, and margins look like they’re riding an emotional roller coaster.
Annualised EPS (0.16 × 4 = ₹0.64) gives a trailing P/E of ~28x, slightly more realistic than the stated 35.9x, but still not a bargain given the margin circus.
5. Valuation Discussion – Fair Value Range Only
Let’s see where this rollercoaster lands if we try to price it sensibly.
(i) P/E Method: Assume sustainable EPS = ₹0.64. Industry P/E = 22.3x (NBFC median). Fair Value Range = ₹14.1 to ₹18.5.
(ii) EV/EBITDA Method: EV = ₹519 Cr, EBITDA (TTM) = ₹37.6 Cr → EV/EBITDA = 13.8x. Peers trade at 10–16x. Fair Range (10–14x) → Enterprise Value ₹376–₹526 Cr → Equity Value ₹14–₹20/share.
(iii) DCF (simplified): Assume free cash flow grows 10% for 5 years, terminal growth 3%, discount 11%. DCF suggests intrinsic value ≈ ₹17–₹21.
Fair Value Educational Range: ₹14 – ₹21 per share.
Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
This is where Avonmore’s story gets spicy:
Composite Scheme of Arrangement: Approved in Sept 2025, involving the demerger of broking arm Almondz Broking and several amalgamations across group entities. Think of it as a financial Rubik’s Cube.
Rs. 74.83 Cr Preferential Issue (Aug 2025): 3.77 crore convertible warrants to promoters—later withdrawn in November 2025. The share swap saga continues.
MTM Loss of ₹70.79 Cr (Nov 2025): Possibly the most painful line in their recent press release. It’s like a math error you can’t Ctrl+Z.
Rights Issue (Dec 2024): ₹49 Cr raised—because cash cushions never hurt.
Share Split: From ₹10 to ₹1 face value in May 2024. Because smaller numbers psychologically look affordable.
Acquisition: Almondz Finanz became a wholly owned subsidiary in FY24—consolidation galore.
You can’t deny it—this NBFC is never boring.
7. Balance Sheet
Metric (₹ Cr)
Mar 2023
Mar 2024
Sep 2025
Total Assets
443
519
579
Net Worth (Equity + Reserves)
278
345
379
Borrowings
26
24
26
Other Liabilities
138
194
175
Total Liabilities
443
519
579
Sarcastic Takeaways:
Balance sheet looks like it’s bulking up on investments faster than a gym bro on protein shakes.
Borrowings barely moved—someone’s allergic to debt (good for them).
Net worth grew steadily, meaning at least the auditors can sleep peacefully.
