| Experienced management in financial sector
Setia Auto Finance Private Limited (SAFPL), a Non-Deposit accepting Non-Banking Financial Company, commenced its operations in 1996. Company was initially engaged in extending two-wheeler financing until 2003 when it discontinued the product and shifted towards used vehicles financing namely passenger vehicles, minibuses, commercial vehicles, tractors and have also commenced financing E-vehicle loans in FY2021. Further, company diversified its product mix by extending Loans Against Property (LAP) in 2017. The operations of the company are managed by Mr. Ravi Setia (Founder) and his two sons, Robin Setia and Nitin Setia. Ravi Kumar Setia’s brothers and their families independently operate four NBFCs having presence in the NBFC segment for over two decades. Mr. Ravi Setia has over two decades of experience in the vehicle financing segment and is supported by his two sons, Mr. Robin Setia, who is Executive Director and heading Vehicle financing business of the company and Mr. Nitin Setia who is Chief Operating Officer and heading LAP business.
Acuite believes that SAFPL will continue to be supported by management experience in vehicle financing.
Adequate capitalisation
SAFPL’s Capital Adequacy Ratio stood at 50.67 percent comprising majorly of Tier 1 capital at 49.42 percent as on December 31, 2025. The company’s net worth improved to Rs. 30.00 Cr. as on March 31, 2025 from Rs. 21.82 Cr. as on March 31, 2024 and stood at 34.81 Cr. as on December 31, 2025 on account of capital support in the form of equity infusion of Rs 5.87 Cr. in FY25. The gearing levels improved, and stood at 2.91 times as on March 31, 2025 as against 3.10 times as on March 31, 2024. While there has been an improvement in the company’s net worth, it continues to remain modest, thereby constraining the overall financial risk profile.
Going ahead, Acuité expects AFPL to benefit from its continuous support from external investors, hereby maintaining adequate capitalisation.
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| Moderate asset quality of vehicle financing portfolio; limited seasoning of LAP portfolio
SAFPL is engaged in used vehicle financing and LAP (37.02% in vehicle financing and 62.98% in LAP as of December 31, 2025), however the company plans on increasing its LAP portfolio in near future. Used vehicle financing comprises passenger vehicles, minibuses, commercial vehicles and tractors having average ticket size of Rs.0.04 Cr. and tenor ranging 2-4 years. The borrower profile mostly comprises self-employed individuals whose serviceability of these loans is directly dependent on the level of economic activity in the region of their operations. SAFPL’s asset quality remains moderate with its 90+ dpd (days past due) at Rs 3.01 Cr. as on March 31, 2025, asset quality deteriorated from previous year where its 90+ dpd was at Rs 2.11 Cr. On other hand, LAP business, which commenced in FY2017, has average ticket size is in the range of Rs.0.04 Cr. with tenor ranging 5-7 years. Contribution of LAP segment in overall portfolio increased to ~60.00 percent as on March 31, 2025 as compared to ~53.00 percent as on March 31, 2024. As of December 31, 2025, the GNPA and NNPA ratios (with NPA recognition at 90+ dpd) rose to 4.73% and 4.15%, respectively, compared with 2.12% and 1.85% as of March 31, 2025 (when NPA recognition was at 120+ dpd). The deterioration in asset quality is largely attributable to the change in NPA recognition norms in alignment with RBI guidelines, as well as incremental slippages and emerging stress in the core MSME and vehicle financing segments.
Acuité believes that the company’s ability to contain additional slippages in vehicle financing while maintaining the asset quality of low seasoned LAP book will be crucial.
Modest Scale of Operations
SAFPL currently operates in Rajasthan & Madhya Pradesh and has a network of 31 branches as on December 31, 2025. Company is completely owned by promoters and family and had modest net worth of Rs. 30.00 Cr. as on March 31, 2025 vis-à-vis Rs. 21.82 Cr. as on March 31, 2024. The AUM (on-book and off-book) stood at Rs 200.49 Cr. as on March 31, 2025 as compared to Rs 128.70 Cr. as on March 31, 2024. The increase in AUM was on account of higher disbursements which stood at Rs 134.40 Cr in FY25. Company’s modest scale of operations is further marked by high operational costs resulting in subdued earnings profile as reflected in the PAT of Rs 2.31 crore in FY25.
Acuité believes that company’s ability to grow its scale of operations while improving operational efficiency will be crucial.
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