The global economy remained resilient during 2025 despite geopolitical tensions, trade uncertainties and inflationary pressures. According to the International Monetary Fund (IMF), global GDP growth is estimated at around 3.0% in 2025, supported by easing inflation and the gradual normalisation of monetary policy. While advanced economies experienced moderate growth, emerging economies continued to outperform due to stronger domestic demand and investment.
Central banks in several major economies adopted accommodative policy measures as inflation moderated. However, geopolitical conflicts, volatile commodity prices and supply chain disruptions continued to pose risks to global growth.
India remained one of the fastest-growing major economies during FY 2025-26, supported by robust domestic consumption, government capital expenditure and a resilient financial sector. According to the National Statistics Office (NSO), Indias real GDP is estimated to have grown by approximately 6.5% during FY 2025-26.
Key economic indicators are summarised below:
| Particulars | FY 2025-26 |
| Real GDP Growth | 6.5% |
| CPI Inflation | 4-5% |
| RBI Repo Rate (March 2026) | 5.50% |
| Foreign Exchange Reserves | Above US$700 Billion |
Government initiatives such as PM Gati Shakti, Digital India, Make in India, Startup India, and the Production Linked Incentive (PLI) schemes continued to support investment, infrastructure development, and the formalisation of the economy.
The Indian banking sector remained well capitalised with improved asset quality and healthy credit growth, providing a favourable environment for financial institutions.
The NBFC sector continues to play an important role in providing credit to retail customers, MSMEs and other underserved sectors, complementing the banking system.
During FY 2025-26, the sector remained stable, supported by healthy credit demand and improved asset quality.
Industry Highlights
| Particulars | FY 2025-26 |
| NBFC Credit Growth | 14-16% |
| Bank Credit Growth | 11-12% |
| NBFC Capital Adequacy Ratio | Above 25% |
| Banking Sector Gross NPA | Around 2.3% |
The Reserve Bank of India continued implementation of the Scale-Based Regulatory (SBR) Framework, strengthening governance, capital adequacy, liquidity management, risk management and digital lending practices.
Increasing adoption of digital lending platforms, artificial intelligence and data analytics is improving operational efficiency and customer experience across the industry. The medium-term outlook for the NBFC sector remains positive, supported by rising credit demand, financial inclusion initiatives and economic growth.
Abhinav Capital Services Limited is a listed Non-Banking Financial Company (NBFC-Base Layer) registered with the Reserve Bank of India and primarily engaged in lending and investment activities. During FY 2025-26, the Company continued to focus on:
prudent lending and credit quality; optimisation of the investment portfolio; efficient capital deployment; regulatory compliance; and strengthening governance and risk management.
The Companys business strategy is centred on sustainable growth, disciplined risk management and longterm value creation for stakeholders.
The Company delivered improved profitability during FY 2025-26 despite lower revenue, reflecting better cost management and efficient deployment of funds.
Financial Highlights
| Particulars | FY 2025-26 (\u20b9 Lakhs) | FY 2024-25 (\u20b9 Lakhs) |
| Revenue from Operations | 428.45 | 548.58 |
| Profit Before Tax | 322.78 | 205.74 |
| Profit After Tax | 258.69 | 120.79 |
| Total Assets | 7,829.20 | 8,757.20 |
| Net Worth | 7,364.30 | 7,983.95 |
Revenue from operations decreased by 21.90%, mainly due to portfolio realignment. However, Profit Before Tax increased by 56.88% and Profit After Tax increased by 114.16%, demonstrating improved operational efficiency and disciplined cost management.
The Company maintained a healthy capital base and adequate liquidity while expanding its lending portfolio and optimising investment holdings in line with its business strategy.
During FY 2025-26, the Company continued to strengthen its lending operations while maintaining a prudent approach towards risk management and capital deployment. The Company focused on improving the quality of its loan portfolio, efficient utilisation of resources and compliance with the regulatory framework applicable to NBFCs.
The loan portfolio increased significantly to ?‚?4,835.36 Lakhs as on 31 March 2026 from ?‚?818.06 Lakhs in the previous year, reflecting the Companys strategic focus on expanding its core lending business. Simultaneously, the investment portfolio was rationalised from ?‚?4,323.11 Lakhs to ?‚?2,970.39 Lakhs to optimise returns and improve capital allocation.
The Company continues to adopt prudent credit appraisal processes, regular monitoring of loan accounts and disciplined investment practices to maintain the quality of its assets and generate
6. KEY FINANCIAL INDICATORS
The Companys financial position remained strong during the year.
| Particulars | FY 2025-26 | FY 2024-25 |
| Total Assets (\u20b9 Lakhs) | 7,829.20 | 8,757.20 |
| Net Worth (\u20b9 Lakhs) | 7,364.30 | 7,983.95 |
| Loan Portfolio (\u20b9 Lakhs) | 4,835.36 | 818.06 |
| Investment Portfolio (\u20b9 Lakhs) | 2,970.39 | 4,323.11 |
| Profit Before Tax (\u20b9 Lakhs) | 322.78 | 205.74 |
| Profit After Tax (\u20b9 Lakhs) | 258.69 | 120.79 |
The increase in profitability during the year reflects improved operational efficiency, prudent cost management and strategic portfolio rebalancing.
The Company expects favourable growth opportunities driven by:
sustained growth of the Indian economy; increasing demand for retail and MSME credit; government initiatives promoting financial inclusion; digital transformation in financial services; expanding credit penetration in underserved markets; and growing adoption of technology-based lending solutions.
The Company intends to leverage these opportunities through prudent lending, disciplined risk management and efficient capital allocation.
The Companys business is exposed to various risks, including:
changes in interest rates; economic slowdown and market volatility; credit risk arising from borrower defaults; liquidity risk; regulatory changes; competition from banks, NBFCs and fintech companies; and cybersecurity and operational risks.
The Board and senior management continuously monitor these risks and implement appropriate mitigation measures to minimise their impact on the Companys operations.
Risk management forms an integral part of the Companys business strategy. The Company has established a framework for identifying, evaluating and managing various business risks.
Credit Risk: Managed through prudent credit appraisal, periodic review of exposures and continuous monitoring of borrowers. Liquidity Risk: Managed through effective cash flow planning and maintenance of adequate liquid resources. Market Risk: Managed by maintaining a diversified investment portfolio and monitoring changes in interest rates and market conditions. Operational Risk: Mitigated through documented processes, segregation of duties and periodic internal audits.
1 Compliance Risk: Regular monitoring of regulatory developments ensures compliance with applicable RBI, SEBI and Companies Act requirements.
The Board periodically reviews the Companys risk management framework to ensure its effectiveness.
The Company has established adequate internal financial controls commensurate with the size and nature of its business. The internal control framework is designed to ensure:
safeguarding of assets; accuracy and reliability of financial reporting; compliance with applicable laws and regulations; prevention and detection of fraud; and efficient conduct of business operations.
The Company has an independent Internal Audit mechanism. The Audit Committee periodically reviews internal audit findings, the adequacy of internal controls and the implementation of corrective actions. The Statutory Auditors have also confirmed that the Company has adequate internal financial controls over financial reporting and that such controls were operating effectively as at 31 March 2026.
The Company remains committed to the highest standards of corporate governance and regulatory compliance. During the year, the Company complied with the applicable provisions of the Companies Act, 2013, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the RBI regulatory framework for NBFC-Base Layer entities, Indian Accounting Standards (Ind AS) and other applicable laws. The Company continues to review regulatory developments and update its policies and procedures to ensure timely compliance and adoption of best governance practices.
The Company believes that its employees are its most valuable asset and continues to focus on building a competent, ethical and performance-driven workforce. The Company promotes a work culture based on integrity, transparency, teamwork and continuous learning.
During the year, emphasis was placed on employee development, compliance awareness and performance enhancement. The Company also provides a safe and inclusive work environment and complies with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Industrial relations remained cordial throughout the year.
Technology continues to play a vital role in enhancing operational efficiency, risk management and regulatory compliance. The Company is committed to strengthening its IT infrastructure and adopting digital solutions to improve business processes and customer service.
Strengthening information security and cyber resilience. Automation of operational processes. Digital record management and regulatory reporting. Business continuity and data protection. Continuous improvement in technology-driven controls.
The Company periodically reviews its IT systems to address emerging cybersecurity risks and improve operational resilience.
13. OUTLOOK Indias strong economic fundamentals, increasing credit demand, digital transformation and government initiatives aimed at financial inclusion are expected to provide significant growth opportunities for the NBFC sector.
The Company remains optimistic about its future prospects and will continue to focus on:
expanding quality lending opportunities; maintaining strong asset quality; prudent capital allocation; strengthening governance and risk management; improving operational efficiency; and creating sustainable long-term value for stakeholders.
The Board believes that the Companys strong financial position, disciplined business approach and experienced management team will support sustainable growth in the coming years.
The Companys strategic priorities for FY 2026-27 include:
Expanding the lending portfolio while maintaining prudent underwriting standards. Optimising the investment portfolio to improve risk-adjusted returns. Strengthening risk management and internal control systems. Leveraging technology to enhance operational efficiency and customer experience. Maintaining adequate liquidity and capital strength. Ensuring compliance with evolving regulatory requirements.
The Company will continue to evaluate emerging business opportunities that are aligned with its long-term growth strategy and risk appetite.
The Company remains committed to maximising long-term shareholder value through sustainable business growth, prudent financial management and sound corporate governance.
Efficient utilisation of capital. Sustainable profitability. Strong governance framework. Robust risk management practices. Transparent disclosures and regulatory compliance.
The Company believes that these initiatives will strengthen stakeholder confidence and support long-term value creation.
Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates, outlook or projections may constitute forward-looking statements within the meaning of applicable securities laws and regulations.
These statements are based on assumptions and expectations of future events and are subject to various risks and uncertainties, including changes in economic conditions, interest rates, inflation, regulatory developments, market conditions and other factors beyond the Companys control. Actual results may differ materially from those expressed or implied in such statements.
The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required under applicable laws.
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