- **Pro Fin Capital Services is a Mumbai-based lender** - a financial-inclusion play built on a simple model of raising borrowings and lending them out. Incorporated in 1991 and registered with the Reserve Bank of India as a non-deposit-taking NBFC, the company has spent three decades operating a single, unified financial-services engine that combines loan-making with proprietary trading in shares. The recurring approach is to fund a loan book through a diversified mix of borrowings while also running a stock-in-trade portfolio, so the company earns from both interest income and securities trading - two revenue streams flowing through one balance sheet. # Business segments A single financial-services engine with two intertwined revenue streams - lending to the underserved and proprietary trading in shares - both funded from the same diversified borrowing pool. ## 1. Lending: credit for the underbanked **The company borrows from banks and institutions, then lends to individuals and businesses that mainstream banks often overlook - earning the spread between what it pays and what it charges.** - **Secured and unsecured loans** - it extends both types of credit, with loans typically repayable on demand, so the book can be called back when needed rather than locked into long tenures. - **Funded by a diversified borrowing pool** - the company taps multiple funding sources, which it says helps optimise funding costs, protect interest margins, and reduce the average cost of borrowing. As of March 2025, borrowings stood at roughly Rs. 299 crore against a loan book of about Rs. 346 crore. - **Capital-light enough to stay compliant** - its Capital to Risk-Weighted Assets Ratio was 10.56% as of March 2025, all Tier I capital with no Tier II, and its Liquidity Coverage Ratio was 1.98, meaning it holds nearly twice the high-quality liquid assets required to cover short-term outflows. - **Collection-first during stress** - when COVID-19 hit, the company explicitly shifted focus to collecting dues rather than originating fresh loans, a defensive reflex that reveals how it manages credit cycles. ## 2. Securities trading: a proprietary stock book alongside the loan book **The company buys and sells shares as inventory - not as passive investments - so trading gains sit right alongside interest income in its revenue line.** - **Revenue hits the same top line as lending** - the company's revenue from operations combines interest income and net sale of stock, so the two engines are inseparable in how the business reports its performance. - **Tied to the capital-market cycle** - the company acknowledges that its financial performance is inherently linked to the Indian economy and capital markets, meaning a market downturn hits both the value of its trading book and the creditworthiness of its borrowers at the same time. - **No crypto exposure** - the company has explicitly stated it does not invest or trade in cryptocurrency or virtual currency, keeping its trading activity within conventional listed and unlisted equities. # Group structure and partners **The company runs as a single reportable segment but sits inside a web of associate companies, with lending and borrowing flowing between them on arm's-length terms.** - **Single-segment reporting** - management considers segment-wise reporting irrelevant because the entire business is financial services, so all results are reported as one unit. - **A network of associates** - the company's associate entities include Triyamb Securities, Ambe Securities, and Milgrey Finance And Investments, forming a cluster of financial and allied companies around the core NBFC. - **Related-party lending at a formulaic rate** - when the company extends credit lines to related parties, the interest rate is set at the prevailing State Bank of India MCLR plus 300 basis points per annum, reset monthly with every MCLR change, so the pricing is rule-based rather than negotiated. - **A former subsidiary now an associate** - the company held a 46.92% stake in Tera Natural Resources & Pellets Private Limited as of FY21; that entity was previously a subsidiary but was reclassified as an associate when the management of the two companies ceased to be common during FY20. - **A cancelled warrant issue** - a preferential allotment of 3.25 million convertible warrants announced in July 2021 was later scrapped because the company had not received pre-listing approval from BSE and SEBI rejected its condonation-of-delay application, leaving the shares unlisted.