Upsurge Investment & Finance Ltd. (**UIFL**) is a prominent Indian Non-Banking Financial Company (**NBFC**) with an operational legacy spanning over **30 years**. Registered with the **RBI** under **Section 45-IA** of the RBI Act, 1934, as a **Non-Deposit taking NBFC**, the company has evolved into a specialized provider of financial advisory, capital-raising, and structured credit solutions. UIFL primarily serves the **SME** and **MSME** sectors, bridging the credit gap left by traditional banking institutions through flexible, tech-enabled financial services. --- ### **Core Service Portfolio & Revenue Streams** UIFL operates through a single reportable segment—**Financial Services**—offering a diversified suite of products designed to support the entire business lifecycle: * **Structured Financing & Debt Syndication:** Providing customized funding solutions and managing complex debt requirements for corporate clients. * **Corporate & Commercial Lending:** Offering credit facilities backed by **equity** and **commodities**. * **Advisory & Managerial Services:** Guiding enterprises from **seed funding** through **Pre-IPO** and **IPO** stages. * **Retail & Micro-Financing:** Specializing in **microcredit**, term loans, and working capital for Indian traders and low-income families, supported by a **tech-based loan facilitator**. * **Investment Operations:** Strategic identification and investment in **undervalued businesses** and "hidden gem" stocks with strong asset foundations. * **Specialized Credit Products:** Includes **Project Financing** for industrial/infrastructure projects and **Loans against Commodities** leveraging physical inventory as collateral. --- ### **Exponential Financial Growth & Performance Metrics** The company has entered a high-growth phase, characterized by a massive surge in profitability and revenue over the last three fiscal cycles. | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income/Revenue** | **₹113.67 Crore** | **₹58.02 Crore** | **₹32.64 Crore** | | **Net Profit (PAT)** | **₹15.95 Crore** | **₹11.27 Crore** | **₹0.50 Crore** | | **Revenue Growth (YoY)** | **+95.91%** | **+77.76%** | -14.86% | | **Interim Dividend** | **5% (₹0.50/share)** | **5% (₹0.50/share)** | - | *Note: FY 2023-24 saw a **2139%** increase in Net Profit compared to the previous year, signaling a successful turnaround and scaling of operations.* --- ### **Strategic Capital Infusion & Balance Sheet Strengthening** To fuel its expansion and enhance its legal standing for debt recovery, UIFL has executed a significant capital-raising exercise totaling approximately **₹60 Crores**. * **Equity Allotment (Aug 2024):** Issued **49,19,000 Equity Shares** at **₹73 per unit** (including a **₹63 premium**), raising **₹35.91 Crores**. * **Convertible Warrants:** Issued **33,00,000 warrants** at **₹73**. As of **February 2026**, **18,50,000 warrants** have been converted into equity, contributing **₹10.13 Crores** in capital. * **Authorized Capital Expansion:** Increased from **₹15.25 Crore** to **₹23.75 Crore** (**+55.7%**) to accommodate growth. * **SARFAESI Act Strategy:** A primary goal of this capital increase is to boost the company’s **Net Asset Value (NAV)**, enabling it to more effectively enforce rights under the **SARFAESI Act** for improved asset recovery. --- ### **Operational Infrastructure & Governance** * **Leadership:** Led by **Mr. Dayakrishna Goyal** (Managing Director) with **30+ years** of experience. The broader management team possesses over **120 years** of combined expertise in finance and accounting. * **Compliance:** Adheres to **RBI Prudential Norms** regarding income recognition, asset classification, and provisioning. The company maintains a robust **Standard Operating Procedure (SOP)** for credit appraisal. * **Recent Appointments:** **Mrs. Daya Dhavalbhai Savani** was appointed as Company Secretary & Compliance Officer in **February 2026**. * **Infrastructure Incident:** In **October 2025**, a fire occurred at a **15,000 sq. ft.** call center unit in Malad, Mumbai. While electrical systems were affected, no casualties were reported, and the company continues to manage its operational footprint. --- ### **Future Growth Drivers & Market Expansion** UIFL is positioning itself to capitalize on the digitalization of the Indian economy and the credit needs of emerging sectors: * **Sector Diversification:** Plans to enter **Affordable Housing Finance**, **Education Loans**, **Used Vehicle Finance**, and **Consumer Durable Loans**. * **Green Financing:** Actively exploring opportunities in **Electric Vehicle (EV) funding** and sustainable infrastructure. * **Digital Transformation:** Utilizing **AI**, **automation**, and **Fintech collaborations** to lower customer acquisition costs and improve lead generation. * **Rural Penetration:** Expanding reach into underserved rural markets where traditional banks have limited presence. --- ### **Risk Management Framework** UIFL employs a structured approach to mitigate the inherent risks of the NBFC sector: **1. Credit Risk Management** The company utilizes a three-stage **Expected Credit Loss (ECL)** model: * **Stage 1:** Low risk (**0-29 days** past due). * **Stage 2:** Significant increase in risk (**30-89 days** past due). * **Stage 3:** Default/Credit impaired (**90+ days** past due). * *Current Status:* Management reports a **zero delinquency** track record in its primary lending portfolio. **2. Financial & Market Risks** * **Liquidity:** Reliance on **commercial paper**, **debentures**, and **bank loans** as the company cannot accept demand deposits. * **Interest Rates:** Exposure to **RBI rate hikes** which may squeeze **Net Interest Margins (NIM)**. * **Zero Exposure:** The company maintains **zero exposure** to commodity price fluctuations and **foreign exchange (Forex)** risks, eliminating the need for hedging. **3. Regulatory & External Risks** * **Scale-Based Regulatory (SBR) Framework:** Stricter **RBI** capital adequacy and **NPA recognition** norms increase compliance costs. * **Environmental Factors:** Localized issues such as Mumbai’s deteriorating air quality (**AQI** reaching **341** in some zones) and regional political shifts are monitored for their impact on productivity and policy.