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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 400.00 | ACUITE A- | Stable | Reaffirmed | - |
| Non Convertible Debentures (NCD) | 100.00 | ACUITE A- | Stable | Assigned | - |
| Non Convertible Debentures (NCD) | 100.00 | ACUITE A- | Stable | Reaffirmed | - |
| Total Outstanding | 600.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs. 400.00 Cr. Bank Loan Facilities of Choice Finserv Private Limited (CFPL). The outlook is 'Stable'.
Acuité has reaffirmed the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs. 100.00 Cr. Non-Convertible Debentures of Choice Finserv Private Limited (CFPL). The outlook is 'Stable'. Acuité has assigned the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs. 100.00 Cr. Non-Convertible Debentures of Choice Finserv Private Limited (CFPL). The outlook is 'Stable'. Rationale for rating The rating reaffirmation takes into account the sustained growth in revenue and significant improvements in the earning profile of Choice International Limited (CIL; herein after referred as 'Group') at the consolidated level in 9MFY26. Further, the rating derives strength from the group’s healthy capital structure supported by equity infusions and low leveraged profile. Further, the experienced management and established position in diverse segments provide healthy growth visibility over the medium term. Additionally, rating draws comfort from the sustained level of revenues of Choice Finserv Private Limited (CFPL) in FY25 as well as till 9MFY26, supported by growing profitability levels along with improvement in loan book. However, the same is constrained by moderate level of asset quality, fluctuations/volatility stemming from capital markets as well as highly competitive landscape of the business. Going forward, the sustenance of asset quality, continued promoters support and ability of the company to sustainably improve its operating performance are key monitorable. |
| About the Company |
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Incorporated in 2016, Choice Finserv Private Limited is a Maharashtra based company engaged in offering diverse credit facilities to MSMEs, individuals, and others in Tier-3 and below geographies. Mr. Kamal Poddar, Mr. Ajay Kejriwal, Mr. Vijendra Singh Shekhawat & Mr. Arun Kumar Poddar are the directors of the company.
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| About the Group |
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Incorporated in 1993, Choice International Limited (CIL or group) is an end-to-end financial services conglomerate based in Mumbai. CIL has created a FinTech ecosystem which combines various platforms under one roof for all financial services under the leadership of Mr. Kamal Poddar. The company through its multiple subsidiaries offers financial and consultancy services catering to retail and institutional clients, corporates and state and central governments.
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| Unsupported Rating |
| Not applicable. |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered a consolidated business and financial risk profile of Choice International Limited (CIL) and its subsidiaries to arrive at the rating. The consolidation is in view of the common management, shared brand, and strong operational and financial synergies between the group companies.
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| Key Rating Drivers |
| Strength |
| Strong presence of CIL group with diversified business profile
CIL was incorporated in 1993 and has more than two decades of market presence under the leadership of Mr. Kamal Poddar (MD). The group has diversified business operations, engaged in providing financial services and operates through the segments of NBFC services, broking & distribution, advisory services, and IT services business generating majority of the revenue from broking and distribution services followed by revenue contribution from other segments. CFPL is the wholly owned subsidiary of CIL and therefore benefits from common management, shared brand, and strong operational and financial synergies between the group companies. Acuité believes, that the company’s consolidated business profile will be supported by expertise of seasoned professional managing the operations and established track record of operations. Comfortable capital structure At group level, CIL’s capitalization levels are comfortable marked by improving tangible net worth from Rs.960.87 Cr. as on 31st March, 2025 as against Rs.563.22 Cr. as on 31st March, 2024 (excluding revaluation reserve and intangible assets). Further, the gearing (debt-equity) of the group stood at 0.70 times during FY25 as compared to 0.81 times during FY24. Moreover, the substantial equity raise of ~Rs 693 Cr (Rs.520.22 Cr. received till 9MFY26) shall further strengthen the net-worth of the group. Furthermore, CFPL at standalone level also has adequate capitalization levels marked by growing net worth of Rs.355.23 Cr. as on 31st March, 2025 as against Rs.230.16 Cr. as on 31st March, 2024 owing to accretion of profits and equity infusion as well. While the debt levels increased to support the business growth, the debt-equity elevated but stood comfortable at 1.33 times as on 31st March, 2025 (1.29 times as on 31st March, 2024). The capitalisation levels further improved with a CRAR at 38.62% in FY25 and 51.51% during H1FY26 which is well above the stipulated regulatory levels. Acuité believes that the company’s comfortable capitalization levels will support its growth plans over the medium term. Growing scale of operations At a consolidated level, CIL's total operating income (adjusted for inter segment revenue) increased to Rs.910.38 Cr. in FY25 as compared to Rs.750.68 Cr. in FY24. Additionally, the revenue stood at Rs.830.66 Cr. during 9MFY26. The growth during this period is primarily attributable to the broking business (Rs.460.49 Cr in 9MFY26 against Rs.422.14 Cr. in 9MFY25) followed by advisory services (Rs.238.54 Cr. in 9MFY26 against Rs.160.79 Cr. in 9MFY25), the NBFC segment and others. Further, the overall profitability increased from Rs.130.86 Cr. in FY24 to Rs.162.71 Cr. in FY25 and to Rs.170.04 Cr. during 9MFY26. Moreover, CFPL at standalone level; the operating income improved to Rs.121.64 Cr. during 9MFY26, increasing from Rs.77.41 Cr. in 9MFY25 mainly driven by improved loan book. The AUM of the company stood at Rs.767 Cr. in FY25. However, the AUM decreased during H1FY26 to ~Rs.711 Cr. due to reduced disbursements and limited sales force on account of M&A activities. However, the AUM stood improved at ~Rs.756 Cr. till 9MFY26 (as per IndAS) and is targeted at ~Rs.900 Cr. till March 2026. |
| Weakness |
| Moderate asset quality levels
CFPL has reported an on-time portfolio of 87.32% in FY25 against 91.63% for FY24 and 79.40% till H1FY26. Further, the asset quality deteriorated in FY25 with GNPA of 2.44% against 2.17% in FY24 and NNPA of 0.54% in FY25 against 1.92% in FY24. This increase in NPA was seen from MSME loan portfolio concentrated in the state of Gujarat, with borrowers mainly dependent on agriculture and allied income. Furthermore, during H1FY26, the GNPA and NNPA stood at 4.36% and 2.92% respectively. The considerable increase again was due to decreased AUM, lowered disbursements and manpower attrition during the same period. However, hiring of sales force has been initiated in Q3FY26 which led to improvement in the asset quality, with GNPA reducing of 3.77% and NNPA of 2.83% respectively. Acuité believes that CFPL’s ability sustain the growth in its loan book, while maintaining sound asset quality level in the near to the medium term will be key rating monitorable. Susceptibility to inherent risks in MSME segment and solar loans The asset quality in NBFC business remains exposed to the inherent vulnerabilities associated with the MSME borrower profile and heightened sensitivity to economic downturns. This segment is prone to cash flow volatility and weaker debt-servicing capabilities, thereby elevating the risk of delinquencies. Furthermore, the solar loan portfolio is subject to execution and performance risks, including delays in project implementation, variability in asset efficiency, and dependence on evolving regulatory and subsidy frameworks. These structural challenges collectively constrain asset quality and increase the susceptibility of the loan book to stress under adverse operating conditions. However, these risks are partly offset by the company’s prudent underwriting practices, which emphasize borrower cash flow assessment and collateral coverage. |
| ESG Factors Relevant for Rating |
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The group ensures that it takes up initiatives towards sustainability and reduction in carbon emissions and promotes eco- friendly practices. The group is committed to upholding strong governance practices and drive value for its stakeholders while fostering an ethical and transparent work environment. The board of Choice International Limited comprises of 12 members including executive, non-executive, and independent directors and adheres to all applicable regulations to maintain integrity, excellence and responsible growth. Further the group is dedicated to ensure an inclusive and encouraging work environment. dedicated to work towards employee development through skills training programs, coaching and mentorship, ensuring as well as employee wellness programs.
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| Rating Sensitivity |
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| All Covenants |
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Financial Covenants: 1. GNPA shall not exceed 10% of total AUM. 2. NNPA shall not exceed 7% of total AUM. 3. CAR to be maintained at minimum levels stipulated by the regulator (RBI) or 22.5%, whichever is higher. 4. Total Debt to Networth shall not exceed 5x. |
| Liquidity Position |
| Adequate |
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The business growth of CIL has been supported by the group’s internal accruals. The group’s dependence on debt is low as reflected in low gearing of 0.70 times as on 31st March 2025. Hence, the group has no significant term debt obligations over the near term. Further, the cash and bank balance stood at Rs.138.79 Cr. as on 31st March, 2025.
Further, CFPL has cash and cash equivalents of Rs.106.78 Cr. during FY25. Acuité believes the liquidity position will remain adequate in the near to medium term. |
| Outlook: Stable |
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| Other Factors affecting Rating |
| None. |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||||||||||
* Total Income is equal to Net Interest Income plus other income |
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| Key Financials (Consolidated) | ||||||||||||||||||||||||
*Tangible Networth is been considered for FY24 calculations |
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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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• Banks And Financial Institutions: https://www.acuite.in/view-rating-criteria-45.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm |
| Note on complexity levels of the rated instrument |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||||||||||||||||||||||||||
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