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Indus Finance Overview

1. Business Overview

Indus Finance Ltd. is an India-based Non-Banking Financial Company (NBFC) engaged in the business of finance and investments. The company primarily focuses on providing a range of financial services including financing industrial enterprises and commercial undertakings, as well as offering loans and advances to individuals and corporate bodies. Its core business model revolves around generating interest income from its lending activities and earnings from its investment portfolio.

2. Key Segments / Revenue Mix

While the company's stated objective is broad, covering both industrial/commercial financing and loans to individuals/corporates, specific segment-wise revenue contribution percentages are not readily available in public domains. Based on its general NBFC license, it likely operates across various lending categories within retail and corporate finance, but without detailed breakdowns, a precise revenue mix cannot be stated.

3. Industry & Positioning

Indus Finance Ltd. operates within India's highly competitive and fragmented NBFC sector. This sector comprises a wide array of players, from large diversified entities to specialized niche lenders. As a relatively smaller player compared to major NBFCs and banks, Indus Finance likely competes by focusing on specific customer segments, regional markets, or offering tailored financial solutions where larger institutions might not find it viable. Its positioning would be as a local or regional competitor striving for market share in its chosen segments.

4. Competitive Advantage (Moat)

For a smaller NBFC like Indus Finance, traditional competitive advantages such as vast brand recognition, massive scale, or extensive distribution networks seen in larger players are typically limited. Potential "moats" or strengths, if any, could lie in:

Niche Market Understanding: Deep knowledge and relationships within specific local markets or borrower segments.

Agility & Flexibility: Ability to offer faster processing and more flexible terms than larger, more bureaucratic institutions.

Cost-Effective Operations: Potentially lower overheads enabling competitive pricing for its target customers.

However, without specific details, it is prudent to note that durable competitive advantages may be relatively limited in a crowded market.

5. Growth Drivers

Key factors that could drive growth for Indus Finance over the next 3-5 years include:

Overall Economic Growth: A growing Indian economy typically translates to higher demand for credit across individuals and businesses.

Increased Credit Penetration: Continued under-penetration of formal credit in various segments, especially MSMEs and smaller towns, provides growth opportunities for NBFCs.

Digitalization: Adoption of digital lending processes can enhance operational efficiency, reduce costs, and expand reach.

Targeted Lending: Successful identification and catering to specific underserved market niches could fuel growth.

6. Risks

Asset Quality Deterioration: Non-Performing Assets (NPAs) arising from borrower defaults, especially during economic downturns, can significantly impact profitability.

Interest Rate Volatility: Fluctuations in interest rates can affect the company's cost of funds and net interest margins.

Regulatory Changes: Tighter regulations from the Reserve Bank of India (RBI) regarding capital adequacy, asset classification, or liquidity norms could impact operations and profitability.

Competition: Intense competition from banks and other NBFCs can put pressure on lending rates and market share.

Funding & Liquidity Risk: Access to stable, diversified, and cost-effective funding sources is crucial; any disruption can impact lending capacity.

7. Management & Ownership

Indus Finance Ltd. is promoted by the Shah family, which holds a significant stake in the company (typically above 70% as per recent filings), indicating a strong promoter-led ownership structure. While specific details on individual management track records are not widely publicized for smaller companies, promoter-driven businesses often benefit from long-term vision and close involvement but can also face governance scrutiny.

8. Outlook

Indus Finance Ltd. operates in a growing but competitive Indian financial services landscape. The company has potential tailwinds from India's economic growth and increasing credit demand, especially if it can effectively target underserved segments or leverage regional strengths. However, its outlook is subject to the inherent risks of the NBFC sector, including managing asset quality, navigating interest rate cycles, and adapting to evolving regulatory environments. Its ability to scale, diversify its funding sources, and maintain efficient operations in a highly competitive market will be critical for sustained performance.

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Indus Finance Key Financials

Market Cap ₹90 Cr.

Stock P/E 83

P/B 5.1

Current Price ₹96.7

Book Value ₹ 19.1

Face Value 10

52W High ₹103

Dividend Yield 0%

52W Low ₹ 37.7

Indus Finance Share Price

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Volume
Price

Indus Finance Quarterly Price

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Indus Finance Peer Comparison

Indus Finance Quarterly Results

#(Fig in Cr.) Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Operating Revenue 1 2 1 2 2 1 1 1 1 6
Other Income 0 0 0 0 0 0 0 0 0 0
Total Income 1 2 1 2 2 1 1 1 1 6
Total Expenditure 0 1 1 1 0 0 0 0 1 2
Operating Profit 0 1 0 1 1 1 1 1 1 4
Interest Expense 0 0 0 0 1 1 0 0 0 2
Depreciation 0 0 0 0 0 0 0 0 0 0
Profit Before Tax 0 0 0 1 0 0 0 0 0 2
Provision for Tax 0 0 0 0 0 0 0 0 0 0
Profit After Tax 0 0 0 1 0 0 0 0 0 1
Adjustments 0 0 0 0 -0 0 0 0 0 0
Profit After Adjustments 0 0 0 1 0 0 0 0 0 1
Adjusted Earnings Per Share 0.1 0.2 0.1 0.9 0.1 0.1 0.2 0.1 0.3 1.6

Indus Finance Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Operating Revenue 4 3 2 1 1 2 4 1 2 3 6 9
Other Income 1 1 1 1 1 0 0 0 0 1 0 0
Total Income 5 5 3 2 2 3 4 1 3 4 6 9
Total Expenditure 1 2 3 2 2 2 2 2 2 2 2 3
Operating Profit 4 3 1 0 0 0 2 -1 1 2 4 7
Interest Expense 3 2 1 0 0 0 1 0 0 1 2 2
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0
Profit Before Tax 1 1 0 0 0 -0 1 -2 0 1 1 2
Provision for Tax 0 0 0 0 0 0 0 2 0 0 0 0
Profit After Tax 1 1 0 0 0 -0 0 -3 0 1 1 1
Adjustments 0 0 0 0 0 0 1 6 0 0 0 0
Profit After Adjustments 1 1 0 0 0 -0 2 2 0 1 1 1
Adjusted Earnings Per Share 0.8 0.7 0.1 0.1 0.2 -0.1 0.5 -3.7 0.4 0.8 1.2 2.2

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 100% 82% 25% 4%
Operating Profit CAGR 100% 0% 0% 0%
PAT CAGR 0% 0% 0% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 131% 49% 63% 23%
ROE Average 6% 5% -1% 0%
ROCE Average 9% 7% 5% 4%

Indus Finance Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 16 17 17 17 15 13 13 22 19 24 23
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 31 16 14 13 13 8 6 8 5 14 20
Current Liability 1 1 0 0 0 0 0 0 0 0 0
Other Liabilities & Provisions -0 -0 -0 -0 0 -1 -0 2 1 1 -0
Total Liabilities 48 33 30 30 29 20 19 32 24 39 44
Loans 0 0 0 0 0 0 0 0 0 0 0
Investments 12 12 12 12 14 12 11 19 11 14 9
Fixed Assets 0 0 0 0 0 0 0 0 0 0 0
Other Loans 36 20 18 18 15 8 8 7 7 18 28
Other Non Current Assets 0 0 0 0 0 0 0 6 6 6 5
Current Assets 0 1 0 0 0 0 0 1 1 1 1
Total Assets 48 33 30 30 29 20 19 32 24 39 44

Indus Finance Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 0 0 0 0 0 0 0 0 0 0 0
Cash Flow from Operating Activities 1 18 3 0 -0 -0 -0 -2 -0 11 10
Cash Flow from Investing Activities -0 0 -0 0 0 -0 -0 0 -3 -2 -4
Cash Flow from Financing Activities -2 -18 -3 -0 -0 0 0 2 3 -9 -6
Net Cash Inflow / Outflow -0 -0 -0 0 -0 0 -0 0 -0 0 -0
Closing Cash & Cash Equivalent 0 0 0 0 0 0 0 0 0 0 0

Indus Finance Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 0.82 0.71 0.08 0.09 0.21 -0.14 0.54 -3.65 0.42 0.81 1.16
CEPS(Rs) 0.83 0.73 0.1 0.11 0.24 -0.12 0.55 -3.64 0.46 0.85 1.2
DPS(Rs) 0.4 0.4 0 0 0 0 0 0 0 0.3 0.5
Book NAV/Share(Rs) 17.58 17.96 17.92 18.01 16.51 13.72 14.18 16.93 13.78 19.72 19.18
Net Profit Margin 20.56 20.28 3.03 5.69 14.39 -5.59 14.09 -579.52 18.47 22.12 19.46
Operating Margin 101.32 92.51 33.26 10.12 21.96 8.53 44.01 -192.9 39.63 51.87 57.01
PBT Margin 31.29 28.46 4.97 8.29 20.72 -4.55 16.71 -258.91 20.96 26.21 24.44
ROA(%) 1.6 1.63 0.22 0.27 0.66 -0.53 2.53 -13.14 1.38 2.37 2.62
ROE(%) 4.66 4.02 0.43 0.49 1.22 -0.93 3.84 -23.47 2.76 4.84 5.99
ROCE(%) 7.97 7.52 2.47 0.48 1.02 0.81 7.78 -5.21 4.07 7.09 8.99
Price/Earnings(x) 25.86 13.99 186.27 151.54 64.01 0 15.08 0 0 19.27 31.05
Price/Book(x) 1.2 0.56 0.8 0.75 0.82 0.65 0.57 0.72 0 0.79 1.88
Dividend Yield(%) 1.89 4 0 0 0 0 0 0 0 1.92 1.38
EV/Net Sales(x) 13.8 7.72 11.45 17.79 18.98 6.96 3.82 33.65 6.48 8.35 9.69
EV/Core EBITDA(x) 13.57 8.3 33.64 155.07 80.26 73.35 8.62 -17.55 15.77 12.45 14.61
Interest Earned Growth(%) -16.95 -11.4 -28.27 -38.33 -6.02 71.64 51.07 -83.42 264.67 59.34 63.44
Net Profit Growth -3.32 -12.6 -89.3 16.01 137.68 -166.72 480.35 -782.18 111.62 90.86 43.75
EPS Growth(%) -3.33 -12.59 -89.3 16.01 137.63 -166.71 480.45 -782.2 111.62 90.86 43.75
Interest Coverage(x) % 1.45 1.44 1.18 5.54 17.63 0.65 1.61 -2.92 2.12 2.02 1.75

Indus Finance Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 74.61 74.61 74.79 74.79 74.79 74.79 74.79 74.79 74.79 74.79
FII 0 0 0 0 0 0 0 0 0 0
DII 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
Public 25.36 25.36 25.19 25.19 25.19 25.19 25.19 25.19 25.19 25.19
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Indus Finance News

Indus Finance Pros & Cons

Pros

Cons

  • Company has a low return on equity of 5% over the last 3 years.
  • Stock is trading at 5.1 times its book value.
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