Q4 2025 Apollo Finvest (India) Ltd Earnings Call Transcript
Key Points
- Apollo Finvest (India) Ltd (BOM:512437) reported a significant AUM growth of 74% year-on-year, reflecting a clear path forward with new digital lending guidelines.
- The company's profitability remains strong, with a focus on sustainable growth and maintaining double-digit ROEs over the past eight years.
- Apollo Finvest has a low NPA ratio of less than 1%, significantly outperforming the industry average of 2.4%, due to conservative provisioning and strategic loan selection.
- The company is leveraging technology, including AI, to enhance operational efficiency and ensure compliance in customer interactions.
- Apollo Finvest is strategically shifting towards a higher weightage of retail loans, aiming for a 70% retail and 30% term loan split, which is expected to drive future growth.
- The digital lending industry has experienced a slowdown due to regulatory scrutiny and increased risk weights for unsecured books, impacting capital availability.
- Apollo Finvest's growth strategy is cautious, focusing on sustainable growth rather than rapid expansion, which may limit short-term growth potential.
- The company's current debt to equity ratio is low at 0.4%, which may limit leverage opportunities for growth.
- There is a noted dip in AUM quarter-on-quarter, which the company attributes to a focus on annual growth rather than quarterly targets.
- Apollo Finvest is not currently working with legacy companies for digital handholding, potentially missing opportunities for collaboration with established players.
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Sorry, I just realized I'm on mute. Good morning, everyone. Welcoming you all for our earnings call. We'll start with a quick presentation. Mikhil is sharing his screen with us. What we'll do is we've divided our, presentation between Mikhil and me into two parts. I'll start with giving you the updates of what's happened this quarter, and then Mikhil will, take it forward in terms of telling you about what's next for us and what's our strategy in general.
So let's start with the industry updates, the first slide.
Well, for us, the industry update always starts with the big boss, which is RBI. So this quarter, in fact, not even this quarter, I would say just a few days back, RBI has come up with new digital lending guidelines. Not a lot is new in the guidelines. What they have done is on the 8th of May, they came with a circular which consolidates all previous, circulars which have come in.
So it's just to make things very simple and straightforward for digital
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