ICL Fincorp Limited Unlisted Shares

Milestones

Who owns ICL Fincorp? (major shareholders/investors)

ICL Fincorp Limited is a promoter-led NBFC. It has 2 main promoters and key shareholders, with their ownership % of shareholding being

• K.G. Anilkumar: 34.72%

• Umadevi Anilkumar: 13.67%

ICL Fincorp Subsidiaries and Group of Companies

ICL Fincorp has one subsidiary: Salem Erode Investments Limited (SEIL). It is a BSE-listed NBFC. ICL acquired an approx. 75% stake in the company in 2020. SEIL is known for providing gold loan services across 38 branches in India.

Business Model of ICL Fincorp

ICL Fincorp Limited is an NBFC that specializes in Gold Loans and is mainly known for providing secured and unsecured loans. ICL Fincorp had AUM of ₹960.26 crore as on March 31, 2026, of which gold-loan AUM was ₹954.75 crore. This means an estimated 99.4% of its AUM is in gold loans.

Its business model is as follows:

1. Leading gold lending model: ICL Fincorp mainly (99% of all its lending products) operates by providing loans against gold. Customers pledge gold as collateral, receive financing, and repay the loan with interest.

2. Branch-led customer acquisition: The company uses its branch network to reach retail customers, particularly those seeking quick access to credit.

3. Short-to-medium-term credit: Its lending model generates recurring interest income as customers service their loans. The company can redeploy the capital recovered from one loan into new loans.

4. Collateral-backed risk model: Gold and similar collateral is the security for the majority of its lending business.

5. Multiple loan products: While gold loans are the core, ICL also lends through:

• business loans

• vehicle loans

• personal loans

• Loans Against Property (LAP)

6. Non-lending services: The Group also operates in insurance, investment products, money transfer and forex, creating additional financial-service touchpoints beyond lending.

7. Interest-led monetisation: The principal economic engine is the interest earned on its loan portfolio. The company also earns income through applicable fees and charges associated with its financial services.

Unlisted Share Price Overview (year-by-year)

The major trends in price fluctuations revolved around ICL Fincorp’s corporate events throughout the years:

• 2023: The stock price ranged from ₹25.5 to ₹30 (approx.). There was no significant corporate event during the year.

• 2024: The share price traded between approximately ₹26 and ₹29 during the first half of the year before stabilising around ₹26 till the end of the year. In January 2024, the company announced a rights issue at ₹25 per share in a 1:5 ratio. In September 2024, it announced a ₹15 dividend per preference share.

• 2025: The share price remained around ₹26 during the first half of the year before declining to approximately ₹25 by September, where it remained largely stable. In August 2025, the company raised approximately ₹29.09 crore through a rights issue at ₹25 per share in a 1:5 ratio. The company also published its FY2025 and Q1 and Q2 FY2026 financial results.

• During 2026, the share price has remained around ₹25 before briefly rising to ₹30, after which it declined to approximately ₹24 by September. In May 2026, the company announced a rights issue of approximately ₹47.16 crore at ₹25 per share in a 1:4 ratio. Its Q4 FY2026 results were published in June 2026.

Financial Performance (YoY revenue/EBITDA growth narrative)

ICL Fincorp Limited has seen strong growth, with almost 3x growth in revenue, Assets Under Management (AUM), Net worth, and EPS over FY2022-FY2026.

The following analysis is based on the company's FY2025-26 Annual Report

Key Ratios

• Revenue growth moderated: ICL’s revenue growth slowed by more than 10% from FY 25 to FY 26 as its YoY growth fell from 31.6% to 27.1%. For FY 26, it is also below the industry average of 30-35% despite continued expansion in the loan portfolio.

• Gold lending drives expansion: The gold loan portfolio grew by almost 50% in FY 26!

• The average gold loans per branch increased from ₹2.18cr to ₹3.09cr.

• Operating profitability remained stable at around 52% in FY26, broadly in line with previous years.

• Profitability remains modest: Despite ₹240.19 crore in revenue, ICL’s net profit stood at ₹9.13 crore. This means the net profit margin was pretty slim, at approximately 3.8%.

• Asset quality improved as Stage-3 loan assets declined to 0.44% in FY26 from 1.03% in FY25, indicating a reduction in reported stressed assets.

• Returns moderated: ROA declined from 0.99% to 0.85%, while ROE fell from 6.04% to 5.10% in FY26, despite growth in net worth and earnings.

ICL Fincorp vs Indel Money

ICL Fincorp’s direct competitor is Indel Money, which also mainly focuses on gold loans as its major offering in Southern India.

Are ICL Fincorp Unlisted Shares Worth Buying?

ICL Fincorp has a growing gold-loan business, but it needs careful consideration before investing.

Key factors to consider:

1. Business growth and profitability

• AUM grew approximately 49% in FY26.

• Gold loans account for 99.4% of the consolidated loan portfolio.

• The business remains concentrated in southern India, although it is expanding into other states.

• Consolidated PAT was ₹4.3 crore in FY26, compared with ₹2.4 crore in FY25. A strong growth signal.

• CRISIL identifies high operating costs and borrowing costs as constraints on their profitability.

• Return on managed assets remained modest at 0.4% in FY26.

2. Debt and capital

• Consolidated gearing stood at 5.8 times in FY26.

• CRISIL also identified that ICL has the ability to maintain gearing below 6 times. Whether it can raise sufficient capital is an important factor to monitor.

3. Valuation and liquidity

• ICL Fincorp shares are unlisted, so transactions may be less liquid than exchange-traded shares.