Abhinav Capital Services Limited

Business overview Abhinav Capital Services Limited (ABHICAP) is an RBI-registered Non-Banking Financial Company (NBFC–Base Layer) primarily engaged in lending and investment activities. The company focuses on strengthening its core lending business, optimising its investment portfolio, and ensuring efficient capital deployment. It serves regional customers within India, operating as a single geographical segment.

Key facts (for FY 2025-26)

• The company is listed on BSE Limited with Scrip Code: 532057.
• Paid-up capital stood at ₹692.46 lakhs.
• Loan portfolio significantly increased to ₹4,835.36 lakhs as of March 31, 2026, from ₹818.06 lakhs in the previous year.
• Investment portfolio was ₹2,970.39 lakhs as of March 31, 2026.
• Capital to Risk-Weighted Assets Ratio (CRAR) was 28.69%, with Tier I CRAR at 17.97% and Tier II CRAR at 10.71%.
• The promoters include Mr. Bharat Biyani, Mr. Kailash Biyani, and Mr. Vinod Biyani. The Managing Director is Mr. Chetan Karia.

Recent developments (for FY 2025-26)

• The company recorded a substantial increase in its loan portfolio, reflecting a strategic focus on expanding its core lending business.
• It rationalised its investment portfolio to optimise returns and improve capital allocation.
• Profit After Tax (PAT) significantly increased by 114.16% to ₹258.69 lakhs, demonstrating improved operational efficiency and cost management, despite lower revenue from operations.
• The company's strategic priorities for FY 2026-27 include expanding the lending portfolio with prudent underwriting, optimising the investment portfolio for risk-adjusted returns, and strengthening risk management and internal control systems.
• Leveraging technology to enhance operational efficiency and customer experience, along with maintaining adequate liquidity and capital strength, are key strategic focuses.

Key risks flagged by management

• Exposure to changes in interest rates, economic slowdown, and market volatility.
• Credit risk arising from borrower defaults, liquidity risk, and potential for rising Non-Performing Assets (NPAs).
• Threats from regulatory changes, intense competition from other NBFCs and banks, and cybersecurity/operational risks.

Pros

• Demonstrated robust growth in its loan portfolio (FY26).
• Strong capital adequacy, with CRAR well above regulatory requirements.
• Significantly improved profitability (PAT increased by 114.16%) in FY26 due to better cost management and efficient fund deployment.

Cons

• Revenue from operations decreased by 21.90% in FY26, attributed to portfolio realignment.
• Exposure to potential high cost of funds, as identified in the company's SWOT analysis.
• A significant portion of transactions and maximum outstanding exposure involves related parties (e.g., up to ₹300 crore cumulative transaction value for each of three related parties).