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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| BOND | 50.00 | ACUITE BBB- | Stable | Reaffirmed | - |
| Non Convertible Debentures (NCD) | 140.57 | ACUITE BBB- | Stable | Reaffirmed | - |
| Non Convertible Debentures (NCD) | 59.43 | Not Applicable | Withdrawn | - |
| Total Outstanding | 190.57 | - | - |
| Total Withdrawn | 59.43 | - | - |
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Rating Rationale |
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Acuite has reaffirmed its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) to Rs.140.57 Cr. Non Convertible Debentures of ICL Fincorp Limited (ICLFL). The outlook is 'Stable'.
Acuite has also reaffirmed its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) to Rs.50 Cr. Bonds of ICL Fincorp Limited (ICLFL). The outlook is 'Stable'. Acuité has withdrawn the long term rating on the Rs. 59.43 Cr. of non-convertible debentures of ICL Fincorp Limited (ICLFL) without assigning any rating as the facility is fully repaid. The rating withdrawal is in accordance with Acuite’s policy on withdrawal of rating as applicable to the respective facility / instrument. The rating is being withdrawn on account of request received from the issuer and payment confirmation received from the trustee and the redemption certificate issued by the issuer. Rationale for rating The rating reaffirmation continues to factor in the experience of promotors in the gold loan financing segment and moderate earning profile. ICLFL's AUM has improved to Rs.862.70 Cr. as on December 31, 2025 as against Rs.644.79 Cr. as on March 31st 2025 and Rs.472.18 Cr. as on March 31st 2024. ICLFL's net interest margins has improved at 19.90 percent in FY25 as against 18.62 percent in FY24. The PAT for 9MFY25 stood at Rs. 2.7 Cr. and Rs.7.18 Cr. as on FY25. The rating however, remains constrained by geographical concentration, limited financial flexibility and highly competitive business of gold loans. Going forward, the company's ability to raise capital, profitable scale up the loan portfolio while maintaining the capital adequacy and asset quality metrics will be key rating monitorable. |
| About the company |
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ICL Fincorp Limited (ICLFL) was established in 1991 and started its non-banking financial services operation in 1999 with the approval of Reserve Bank of India. The company acquired a Chennai based NBFC company, Jawahar Finance Company, and renamed it as ‘Irinjalakuda Credits and Leasing Company Limited’ in 2004. The company was renamed to ‘ICL Fincorp Ltd’ in May 2016. IFL is based in Irinjalakuda, Thrissur, Kerala. The company started lending against consumer durables and later ventured into gold loans in 2013. The company currently offers gold loans, small business loans, personal loans, loan against property (LAP), and two wheeler loan. The promoter is also engaged in health care, textiles, chits, and tours and travel businesses through separate companies. The registered office of the company is in Chennai. The directors of the company are Mr. Kuzhuppilly Govinda Menon Anilkumar, Ms. Umadevi Anilkumar, Mr. Ambadath Aiyyappan Balan, Mr. Kakkeri Kochakkan Wilson, Mr. Sreejith Surendran Pillai and Mr. Shinto Stanly.
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| Unsupported Rating |
| Not applicable. |
| Analytical Approach |
| Acuite has considered the standalone business and financial risk profile of ICL Fincorp limited to arrive at the rating. |
| Key Rating Drivers |
| Strength |
| Experienced promotors and established track record of operations
The promotors have more than three decades of experience and a strong understanding of customer profile in the region of operations. Given the company's long track record of presence of more than three decades in State of Kerala, the company has built good creditable with borrowers. The company is managed by Mr. K G Anil Kumar, the managing director of the company has long standing experience in various businesses and financial services. The day to day operations of the company are managed by Mr. K G Anil Kumar and Ms. Uma Devi Anil Kumar who is supported by team of professionals. Acuite believes that ICLFL will continue to benefit from experience of promotors and established track record of operations in gold loan segment. Stable Business growth aided by continuous expansion The company has demonstrated stable growth in its business metrics as evident by growth in AUM to Rs.862.70 Cr. as on December 31st 2025 as against Rs.644.79 Cr. as on March 31st 2025 and Rs.472.18 Cr. as on March 31st 2024. Total disbursements in FY25 stood at Rs.1717.87 Cr. as against Rs.1670.78 Cr. in FY2024. High proportion of gold loans in total AUM is also attributable to company’s expertise in gold loans and opex in new states outside of Kerala like Andhra Pradesh, Karnataka, Telangana, Tamil Nadu and Orissa. Increase in outstanding gold loan portfolio would make the portfolio more secure and would reduce the risk of losses. Going forward company is planning to diversify into other segment like vehicle loan, business loan, personal loans and property loans. Geographical concentration ICLFL has presence majorly in south Indian states of Kerala, Tamil Nadu, Telangana, Karnataka, Andhra Pradesh and Orissa. Company’s loan book is majorly concentrated in Kerala with the share of 37.09 as on H1FY26 percent of total portfolio. Decline is attributable to company opex in other states in South India and Orissa. Further, company has expanded it's presence in Maharashtra and Gujrat. |
| Weakness |
| Timely infusion of capital in order to maintain CRAR as per regulatory requirements
Capital to risk assets ratio(CRAR) stood at 19.65 percent as on March 31st 2025 as against 15.00 percent as on March 31 2024. The gearing ratio of the company stood at 5.98 times as on 9MFY26 as against 5.43 times as on March 31st 2025. Timely infusion of capital to facilitate capitalisation requirement as per regulatory requirement would be key rating monitorable. Competitive nature of the Industry ICLFL is exposed to stiff competition from other varied sized NBFCs. The lending industry focused around gold, two wheeler vehicle loan, LAP and secured business loan are highly fragmented with unorganized lenders also vying for the same set of borrowers. However, ICLFL professional management and focused approach towards these lending and conservative underwriting policy standards is expected to grow its business while mitigating the risks attached to them. |
| ESG Factors Relevant for Rating |
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ICL Fincorp Limited (ICLFL) was established in 1991 and started its non-banking financial services operation in 1999 with the approval of Reserve Bank of India. The company currently offers gold loans, small business loans, personal loans, loan against property (LAP), and two wheeler loan. The promoter is also engaged in health care, textiles, chits, and tours and travel businesses through separate companies. The registered office of the company is in Chennai. ICL Fincorp Limited maintains adequate governance and ethical standards, supported by clear policies on corruption mitigation, whistle-blower protection and related-party transactions. The Bank has implemented a structured cyber-security framework and conducts periodic assessments and awareness initiatives to ensure strong data protection and operational resilience and adherence to ethical business practices.
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| Rating Sensitivity |
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| All Covenants |
The Company agrees, confirms and undertakes to comply with and maintain the following Financial Covenants, at all times till the Final Settlement Date:
2) Not more than 4.0 times for the financial year 2024-2025; 3) Not more than 3.5 times for the financial year 2025-2026; And then shall not be more than 3.0 times from Financial year 2026-2027 onwards. Security Cover Ratio - Not less than 1.5 times of the Security cover until the final settlement date. In the event there is breach in the aforesaid Financial Covenants, the Issuer shall be permitted a time period of 30 (thirty) days from the date on which the Issuer becomes aware of such breach or the Debenture Trustee provides a written notice to the Issuer, whichever is earlier, to cure such breach by providing additional security or such other methods as may be mutually acceptable to the Issuer and the Debenture Trustee. For the purpose of the Financial Covenants, the following expressions have the meaning set out against them: “EBITDA” means earnings before Interest depreciation and tax, with respect to any period, earnings and other income of the issuer on consolidated basis before deduction of interest, tax, depreciation and amortization, share of joint ventures and associates and any exceptional items for that period. “Gross Debt” means for a relevant period, the Financial Indebtedness of the Issuer on a consolidated basis |
| Liquidity Position |
| Adequate |
| ICLFL’s overall liquidity profile remains adequate with no negative cumulative mis-matches in near to medium term as per ALM dated December 31, 2025. The company had cash and cash equivalent of Rs.32.39 Cr. as on March 31, 2025. |
| Outlook - Stable |
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| Other Factors affecting Rating |
| None. |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||||||||||
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| Status of non-cooperation with previous CRA (if applicable): |
| Not Applicable. |
| Any other information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm |
| Note on complexity levels of the rated instrument |
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