Onemi Technology Solutions' FY2025-26 record carries clean audit opinions and a growing loan book, but the substance of the business sits in a structure that is hard to see from the parent's standalone numbers. The consolidated balance sheet's borrowings rose 59% to ₹2,396 crore from ₹1,508 crore, half the loan portfolio is managed off-book, and the parent's guarantees backing that structure have risen to ₹2,198 crore from ₹1,221.76 crore a year earlier. Accounting-policy choices moved reported profit in a favourable direction, and institutional shareholders voted against every ESOP resolution on the ballot.
Key findings
- Borrowings rose 59% while half the loan book sits off-book, backed by ₹2,198 crore of parent guarantees
Major- Total borrowings rose to ₹2,396 crore in FY26 from ₹1,508 crore in FY25, a 59% increase, with finance costs up 72% to ₹282 crore. Roughly ₹3,510 crore, about 50% of total AUM, was managed through an off-book model with eight lending institutions as of March 31, 2026. The parent's corporate guarantees for subsidiary borrowings stood at ₹2,198.21 crore, up from ₹1,221.76 crore a year earlier. - Accounting-policy changes and management overlays moved reported profit in a favourable direction
Major- The company extended the amortisation life of in-house software from 5 years to 10 years, effective FY2025-26, applied prospectively. It also recognised a management overlay of ₹135.95 crore on top of the expected credit loss amount as at March 31, 2026. The CFO said the reported increase in borrowing cost is an "anomaly" caused by switching from monthly to daily average debt AUM, adopted "just to be consistent". - Nearly all parent capital support flows to subsidiary Si Creva through guarantees and an equity injection
Major- Onemi issued corporate guarantees of ₹2,438.91 crore during FY2025-26 for loans sanctioned to its subsidiary, with ₹2,198.21 crore outstanding as at March 31, 2026. On 16 May 2026, the company acquired 30,00,000 equity shares of Si Creva at ₹2,125 per share, a ₹637.50 crore cash outlay proposed to be funded from IPO fresh issue net proceeds. The company reports no other related-party transactions outside the ordinary course or not at arm's length. - Onemi operates as NBFC-Middle Layer through subsidiary Si Creva
Major- Onemi operates as an NBFC-Middle Layer through its wholly owned subsidiary Si Creva Capital Services. Consolidated borrowings were ₹1,895 crore versus standalone borrowings of ₹17.58 crore, and consolidated PAT was ₹281 crore versus standalone PAT of ₹144 crore. The consolidated opinion relies on another auditor for Si Creva, which held total assets of ₹3,730.01 crore. - Six ESOP resolutions drew 33-41% institutional dissent while promoters voted 100% in favour
Major- Public-Institutions voted against all six ESOP resolutions at the June 29, 2026 postal ballot, with dissent rates of 33.78% to 40.65%; promoters voted 100% in favour on each. During FY2025-26, 82.3% of the 4,45,813 stock options granted pertained to subsidiary employees. Three Non-Executive Nominee Directors and one Independent Director resigned during the year; the CFO resigned effective July 17, 2025, with a replacement appointed four days later. - Revenue is shifting to fee-based off-book income while three customers supply over half of standalone revenue
Major- Standalone revenue for FY2025-26 included three customers each contributing at least 10% of total revenue, at ₹193.64 crore, ₹171.15 crore, and ₹157.05 crore. The consolidated statements report no single external customer at 10% or more. Management said the off-book share rose from 49.7% to 53.6%, and the 249 bps QoQ decline in total income as a share of average AUM was "very deliberate" and part of a "conscious and concerted strategy" to acquire higher-quality customers priced lower. - Audit opinions are clean, but the consolidated opinion relies on another auditor for a subsidiary
Major- Chokshi & Chokshi LLP issued unqualified opinions on both standalone and consolidated financials, with Key Audit Matters reported in both. The consolidated opinion relies on another auditor's report for a subsidiary's amounts and disclosures, with the opinion unmodified. The CARO report states the company has not incurred cash losses, while the financial data shows CFO of -₹461 crore in FY26 and -₹661 crore in FY25. - Contingent exposure is dominated by ₹2,198 crore of subsidiary guarantees, with multiple disputed tax demands disclosed
Major- Corporate guarantees for Si Creva's borrowings stood at ₹2,198.21 crore as at March 31, 2026, up from ₹1,221.76 crore a year earlier. Note 36 discloses multiple disputed tax demands, including income tax under appeals of ₹4.93 crore, ₹47.06 crore, ₹0.84 crore and ₹18.63 crore, plus GST demands of ₹64.68 crore, ₹15.17 crore, ₹39.34 crore and ₹16.75 crore. The ₹0.38 crore was paid under protest when filing an appeal. The auditor's report states pending litigations are disclosed in Note 36 with no material foreseeable losses in long-term contracts.
What to watch
- Rating outcome. Active discussions with India Ratings and CRISIL, which management says will "meaningfully impact" cost of borrowing in FY28.
- Cost of borrowing guidance. H2 FY27 reduction of 100 basis points as guided by the CFO, with old 18-24 month tenure debt running off.
- Accounting policy persistence. Next annual report for FY2026-27 to show whether the software amortisation life extension and management overlay levels persist or reverse.
- Borrowing-cost methodology. Q2 FY27 results to show whether the daily-average methodology continues and how it affects reported cost of borrowing.
- Further guarantees. Any additional corporate guarantees for Si Creva's borrowings beyond the ₹2,198.21 crore outstanding as at March 31, 2026.
Bottom line: This is an audited, growing NBFC with a clean statutory opinion, but the record's substance sits in a single subsidiary that holds approximately 94% of group assets and carries nearly all the debt. The risk is structural: half the loan book is off-balance-sheet, the parent's guarantees backing it have nearly doubled in a year, and accounting choices have moved reported profit in one direction. Watch whether the rating outcome and the borrowing-cost guidance actually reduce finance costs, and whether the guarantee exposure keeps growing.