PMC Fincorp Limited is a **Reserve Bank of India (RBI)** registered **Non-Banking Financial Company (NBFC)**, classified as an **Investment and Credit Company (ICC)** and an **NBFC-Base Layer** (Non-Deposit taking, Non-Systemically Important). Operating under Section **45-IA** of the RBI Act, 1934, the company has evolved into a diversified financial services provider, bridging the credit gap in underserved Indian markets while maintaining an active presence in capital market operations. --- ### **Core Business Pillars and Revenue Streams** The company operates through a single reportable segment: **Financial and Investment Activities**. Its business model is built upon three distinct yet complementary operational pillars: * **Credit & Financing:** Provision of **Corporate and Personal Finance**, including both secured and unsecured loans. The company targets the "Middle India" demographic—households with annual incomes between **₹0.02 crore and ₹0.1 crore**—a segment projected to reach **18.1 crore households** by 2030. * **Strategic Investments:** Long-term capital allocation into the securities of **Listed and Unlisted companies**. The investment strategy focuses on high-growth themes including **Electrification, Decarbonization, Defense, Infrastructure, Railways, and PSUs**. * **Capital Market Trading:** Active proprietary trading in **shares and securities**, including **Future & Option (F&O)** segments and intraday operations. The company utilizes a digital-first approach to manage this portfolio, ensuring all inventory is held in **Dematerialised form** via **NSDL** and **CDSL**. --- ### **Strategic Growth Initiatives and Product Innovation** PMC Fincorp is currently executing an aggressive expansion strategy to scale its operational footprint and diversify its product suite: * **Loan Against Securities (LAS):** A key recent launch designed to cater to the burgeoning retail investor base in India, positioning the company to capture market share from larger incumbents by targeting nascent gaps in the credit market. * **Digital Transformation:** The company has integrated **e-KYC**, **digital onboarding**, and **UPI-based collections**. This "field-heavy" yet digitally enabled model reduces turnaround times and administrative costs while maintaining deep regional insights. * **Market Positioning:** By focusing on residual credit demand in under-penetrated markets, the company aims to capitalize on the projected **12%-14% CAGR** of the NBFC sector through Fiscal 2025. --- ### **Capital Structure and Financial Trajectory** The company has undergone a significant financial turnaround, moving from a net loss in FY 2022-23 to record profitability in subsequent years. This recovery is underpinned by a series of strategic capital raises. #### **Key Financial Performance Metrics** | Particulars (INR in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | - | **1,566.34** | **849.73** | | **Net Profit After Tax (PAT)** | **1,434.00** | **1,134.68** | **(636.31)** | | **Book Value (per share)** | **2.37** | **2.16** | **1.94** | | **Total Equity** | **7,120.82** | **5,340.61** | **5,340.61** | | **Adjusted Net Debt/Equity** | **0.003%** | **0.35%** | **0.51%** | #### **Capital Infusion History** * **Rights Issue (Nov 2024):** Raised **₹48.96 Crore** by allotting **17,80,20,400 shares** at **₹2.75** per share to augment the capital base and repay existing loans. * **Convertible Warrants (Dec 2025):** Issued **9,00,00,000 warrants** at **₹2.62** each to Non-Promoters, totaling **₹23.58 Crore**. * **Warrant Conversion (May 2022):** Converted **2,50,00,000 warrants** into equity at **₹9.90** each, totaling **₹24.75 Crore**. * **Capital Adequacy:** As of March 31, 2024, the company maintained a robust **Capital to Risk-weighted Assets Ratio (CRAR)** of **85.32%**. --- ### **Governance and Operational Framework** The company is managed by the **Modi family** (Promoters) with a board of **6 Directors** providing professional oversight. * **Leadership:** **Mr. Raj Kumar Modi** (Managing Director) and **Mr. Prabhat Modi** (Whole Time Director) have been re-appointed until **2030**. * **Board Expertise:** Recent additions include **Mr. Puneet Arora (Chartered Accountant)** as a Non-Executive Director. The board includes independent professionals with backgrounds in **Legal, Finance, and Corporate Secretarial** services. * **Internal Oversight:** **M/s KPSP & Associates** serves as Internal Auditors for the period **FY 2024-25 to 2026-27**. * **Taxation:** The company has adopted the reduced corporate tax rate of **25.17%** under **Section 115BAA** of the Income Tax Act. --- ### **Risk Profile and Contingent Liabilities** Investors should note several regulatory, legal, and operational risks that could impact future performance: #### **Regulatory and Legal Challenges** * **Supreme Court Litigation:** A **2021 SEBI order** regarding **PFUTP Regulations** (carrying a **₹10 Lakh** penalty) was quashed by the **Securities Appellate Tribunal (SAT)** in 2023. However, **SEBI has appealed** this decision to the **Supreme Court**, where it remains pending. * **Tax Demands:** The company faces a contingent liability of **₹2,621.98 Lakhs** related to Income Tax demands, currently under appeal at the **CIT (Appeals), Kanpur**. * **Promoter Legal Matters:** Managing Director **Mr. Raj Kumar Modi** is involved in the **Adarsh Scam Matter** (SFIO investigation) regarding alleged fund routing. He is currently on **interim bail** granted by the Supreme Court. #### **Operational and Market Risks** * **Asset Quality:** The loan book (approx. **₹110.88 Crore**) is primarily **unsecured**, increasing the risk of default. * **Ownership Concentration:** The **Promoter Group** holds only **20.03%** of the equity, which may present challenges in passing shareholder resolutions if faced with opposition. * **Auditor Transition:** The previous Statutory Auditor resigned in **November 2025** following a disagreement over **audit fees** and the increased workload associated with the listed entity. * **Infrastructure:** The company does not own its office premises, its **logo is not a registered trademark**, and as of late 2024, it reported **no active insurance policies** for physical or operational losses. #### **Summary of Contingent Liabilities** | Nature of Liability | Amount (₹ in Lakhs) | Status | | :--- | :--- | :--- | | **Income Tax Demand** | **2,621.98** | Pending in Appeal (CIT) | | **SEBI Penalty** | **10.00** | Pending in Supreme Court | | **Unsecured Loan Book** | **11,088.00** | Subject to Credit Risk/ECL | --- ### **Future Outlook** PMC Fincorp is positioned as a high-growth NBFC leveraging a strengthened balance sheet (AUM crossed **₹200 crore** in 2025) and a diversified revenue model. While the company benefits from the "Middle India" growth story and capital market volatility, its long-term stability remains contingent on the resolution of pending Supreme Court litigation and the successful management of its unsecured credit portfolio.