1. At a Glance – Blink and You’ll Miss the Plot Twist
India Finsec Ltd is currently sitting at a market cap of ₹465 Cr, trading at ₹159, down ~11% in the last 3 months, while long-term holders still flex with 84% returns over 5 years. On paper, it screams “mini Bajaj Finance” with 75%+ operating margins, 32x P/E, and ₹14.5 Cr PAT.
But scratch the surface and the story gets spicy.
This is a company that:
- Makes 96% of its revenue from interest income
- Runs on borrowed money (₹250 Cr debt)
- Has promoter pledge of 71%
- And then casually says: “Bro, we’re surrendering our NBFC license”
Yes, you read that right. An NBFC that decided to stop being an NBFC and become a Core Investment Company (CIC) so that its subsidiary can play banker instead.
Add 42.5 lakh convertible warrants worth ₹34 Cr, chunky corporate guarantees, and 105% QoQ profit growth, and you’ve got a financial thriller, not a balance sheet.
So… is this quiet genius capital allocation or regulatory gymnastics with jazz hands?
Let’s find out.
2. Introduction – When the Holding Company Starts Acting Like a Parent
India Finsec Ltd was incorporated in 1994, back when NBFCs were still called “finance companies” and nobody argued about GNPA on Twitter.
For most of its life, the company operated as a Non-Systemically Important, Non-Deposit Taking NBFC, doing what NBFCs do best:
- Borrow money
- Lend money
- Earn the spread
- Pray to RBI circulars
By FY24, the company had built a diversified loan book spanning commercial vehicles, passenger vehicles, MSMEs, gold loans, personal loans, and basically everything that can be hypothecated, pledged, or emotionally blackmailed into collateral.
But then came the big brain move in April 2025.
Management said:
“Let’s surrender our NBFC-ICC license… and let the subsidiary do the lending.”
So India Finsec now plans to operate as an unregistered Core Investment Company, focusing on:
- Holding investments
- Funding subsidiaries
- Giving guarantees
- And staying away from direct lending headaches
In short, the parent became the money dad, while the kid (IFL Housing Finance, now JFL Finance) goes to RBI school.
Is this regulatory arbitrage?
Or clean corporate restructuring?
Depends on whether you’re an optimist or an auditor with trust issues.
3. Business Model – WTF Do
They Even Do?
Let’s simplify this without MBA jargon.
Earlier Avatar (NBFC Mode)
India Finsec directly:
- Borrowed funds
- Disbursed loans
- Earned interest income
- Took credit risk on its own books
Loan mix FY24:
- Commercial Vehicles – 38%
- Passenger Vehicles – 18%
- MSME – 12%
- Gold Loans – 9%
- Personal Loans – 7%
- Two Wheelers, Farm Equipment, Construction Equipment – balance
Basically, if it moves, rolls, or earns cash, India Finsec financed it.
Current Transition (CIC Mode)
Post surrender of CoR:
- India Finsec will not do lending
- It will hold investments
- Provide corporate guarantees
- Fund subsidiaries (especially JFL Finance)
Revenue visibility will increasingly depend on:
- Dividend income
- Interest from ICDs
- Valuation of investments
- Performance of subsidiary NBFC
So now the big question:
👉 Is India Finsec a lender or a holding company with EMIs in its blood memory?
And more importantly —
👉 Will margins stay at 75% when lending moves out?
Hold that thought.
4. Financials Overview – The Numbers That Make You Go “Hmmm”
Quarterly Performance (Q3 FY26 – Dec 2025)
(Consolidated, ₹ Cr)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 21.59 | 16.19 | 20.17 | 33.4% | 7.0% |
| EBITDA | 16.50 | 10.40 | 15.23 | 58.6% | 8.3% |
| PAT | 5.05 | 3.03 | 5.54 | 66.7% | -8.8% |
| EPS (₹) | 1.21 | 0.72 | 1.35 | 68.0% | -10.4% |
Observations (read slowly):
- Revenue keeps inching up steadily
- EBITDA margins are 76%, which is… suspiciously high for any lender
- PAT dipped QoQ despite higher revenue → interest cost rising
- EPS volatility tells you leverage is doing push-ups
Annualised EPS (Q3 rule applied carefully):
Average of Q1, Q2, Q3 EPS × 4 ≈ ₹4.9–5.0, matching TTM EPS of ₹4.99
No jugaad here. Math checks out.
Now ask yourself:
👉 How many NBFCs do
