Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has reaffirmed the long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs. 10 Cr. proposed bank loan facility of Srinidhi Credit Private Limited (SCPL). The outlook is 'Stable'.
Rationale for rating
The rating factors in the experienced management, significant support from Srinidhi group where the Category II Alternative Investment Fund (Srinidhi AIF) has assumed OCD worth Rs 60 Cr. outstanding as on Mar’26 and its comfortable capital structure. SCPL's capital structure is marked by net worth and gearing of Rs. 126.97 Cr. and 1.94 times as on March 31, 2026. The rating also reflects the sound asset quality and prudent risk management practices of SCPL. SCPL has demonstrated sound asset quality marked by on-time portfolio of 98.03 percent as on March 31,2026. These strengths are partially offset by the high concentration of top 3 borrowers in the overall loan portfolio constituting ~80 percent as on 31 March 2026. Further the rating remains constrained by lack of diversification in the funding profile. Going forward, SCPL's ability to diversify their funding profile, minimising its concentration while maintaining its asset quality and profitability metrics will remain a key monitorable.
About the company
Srinidhi Credit Private Limited (SCPL), an NBFC under registered license from RBI was incorporated in the year 2016. It was incorporated by late Mr. SV Mony, along with Mr Venkat. SCPL is the lending arm of Srinidhi group which also operates Category II Alternative Investment Fund registered under SEBI. SCPL investment takes a debt-style approach to the principal investment and participation in upside performance in enterprises to ensure long-term equity appreciation. Srinidhi Credit Private Limited, the NBFC arm of the Group - plays an active role in assuming exposure towards credit opportunities from identified Portfolio companies for the group, where Srinidhi AIF has already assumed convertibles and significant minority to supermajority equity in the capital structure. This helps in security perfection and high-yield interest income from the investments. It also has a non-core loan book where the strategy is to start a lending relationship which will test the serviceability and help the group in understanding the business before assuming the equity partnership to a high-quality business. The company is based in Chennai.
Unsupported Rating
Not Applicable.
Analytical Approach
Acuité has considered standalone business and financial risk profiles of SCPL to arrive at the rating
Key Rating Drivers
Strength
Experienced Management
Srinidhi Credit Private Limited (SCPL) is the lending arm of the Srinidhi Group extending loans towards small to medium size enterprises. SCPL is headed by Mr Venkat Ramaswamy who is the Co-founder and CIO of the Group and director of SCPL. Mr. Venkat has great experience and managed USD 500 Mn structured equity portfolio in emerging markets, he has also worked for 3 years as an originator in the Securitization team. The promoters are supported by seasoned professionals in day-to day activities. The management team has an extensive experience of over two decades in the financial industry. Acuité believes that company’s growth prospects will be supported by the promoter’s experience in this industry.
Healthy AUM growth while maintaining asset quality.
The company’s loan portfolio outstanding grew to Rs. 372.25 Cr. as on FY26 from Rs. 309.99 Cr. as on FY25. The company majorly disburses loans to MSMEs, with the average ticket size ranging between Rs 50 lacs to 15 Cr. The tenure of these loans range between 3 months to 6 years. SCPL has demonstrated sound asset quality marked by on-time portfolio of 98.03 percent as on March 31,2026. The company has structured inherent checks for effective risk management that include lending policy, underwriting process, and dedicated due diligence team, which helps to maintain asset quality. SCPL reported GNPA and NNPA of 1.97% and 1.53% as on March 31,2026. The company’s overall collection efficiency averages to 91 percent for last 6 month ended March' 26.
Acuité believes that SCPL’s ability to 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.
Adequate Capital Structure
With a net worth of Rs.126.97 Cr. as on March 31, 2026, the company is well positioned to support the growth of its businesses over the medium term. SCPL’s capital position is adequate as reflected in the capital adequacy which stood at 85.66 percent as on March 31, 2026. Also, the outstanding long term debt stood at Rs.372.25 Cr. as on March 31,2026 comprising of convertible debentures translating to gearing ratio of 1.94 times.
Weakness
Concentrated Loan book and limited track record.
SCPL’s loan book is highly concentrated in terms of geography and customers. The portfolio is highly concentrated in the states of Tamil Nadu (~97%) and Rajasthan (~3%). SCPL’s exposure to the top 3 borrowers in the overall loan portfolio constitute ~80 percent as on March 31, 2026. SCPL was incorporated in 2016 and disburses loans with tenure averaging to five to six years indicating that the company has limited track record.
Acuite believes the company's ability to diversify its loan portfolio while maintaining its asset quality will be key monitorable.
Moderate diversification in funding profile
The company's funding profile remains concentrated to Srinidhi AIF Fund II (25.89%) and Sustainable Investments (34.32%) who have assumed total debt of Rs.246.16 Cr. outstanding as on March’26.
Acuite believes that the company’s ability to raise adequate capital to fund growth, while maintaining comfortable gearing and achieve a more diversified funding mix, would be important rating considerations going forward.
Rating Sensitivity
Potential triggers (individual or collective) for an upward rating action:
Significant growth in AUM and disbursements.
Significant improvements in profitability metrics and ROAA above 7 percent.
Potential triggers (individual or collective) for a downward rating action:
Deterioration in asset quality metrics, collection efficiency,
GNPA greater than 4 percent
Liquidity Position
Adequate
The liquidity position of the company remains adequate, supported by positive cumulative ALM mismatches across all maturity buckets. As per the ALM statement dated March 31, 2026,SCPL repayment obligations (total outflows) during FY2026-27 stood at Rs.24.53 Cr. over a one-year period, against receivable (total inflows) of Rs.146.98 Cr. over the same period resulting in positive mismatch of Rs.122.45 Cr. as per the ALM statement dated March 31, 2026. The company has cash and bank balances of around Rs.0.03 Cr. as on March 31, 2026.
Outlook
Stable
Other Factors affecting Rating
None.
Key Financials - Standalone / Originator
Particulars
Unit
FY26 (Actual)
FY25 (Actual)
Total Assets
Rs. Cr.
381.82
344.68
Total Income*
Rs. Cr.
27.75
22.33
PAT
Rs. Cr.
16
11.09
Net Worth
Rs. Cr.
126.97
110.97
Return on Average Assets (RoAA)
(%)
4.40
3.68
Return on Average Net Worth (RoNW)
(%)
13.45
11.03
Debt/Equity
Times
1.94
2.08
Gross NPA
(%)
1.97
0.75
Net NPA
(%)
1.53
0.43
*Total income equals Net Interest Income plus other income
Status of non-cooperation with previous CRA (if applicable):
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Contacts
List of instruments and names of regulators of the instruments
