SK Finance Ltd

Total income increased from INR 1,314.2 Cr in FY23 to INR 1,797.9 Cr in FY24, INR 2,386.4 Cr in FY25 and INR 2,828.2 Cr in FY26

FY26 mechanical EBITDA stood at approximately INR 1,739.3 Cr, resulting in an EBITDA margin of approximately 61.5%

PAT increased from INR 379.7 Cr in FY25 to INR 430.9 Cr in FY26, +13.5% YoY; FY26 PAT margin stood at 15.2%

FY26 PAT of INR 430.9 Cr against average FY25-FY26 equity of approximately INR 3,741.9 Cr resulted in an estimated ROE of 11.5%

Retail NBFC AUM is projected to sustain 18.0%-20.0% growth in FY27, supporting classification in the Growth stage

Estimated industry HHI is <1,200, reflecting a fragmented lender base across banks and NBFCs

SK Finance is classified as a Middle Layer NBFC, with FY26 D/E of 3.23x, CRAR of 25.41% and LCR of 167.01%

The Company operates 100.0% primarily in financing activities in India, with no material overseas lending revenue disclosed

Rajendra Kumar Setia founded the business in 1994, giving the promoter 31+ years of financial-services experience by 2026

The current Board comprises 7 directors, including 3 Independent Directors, resulting in 42.9% independent representation

0.0% promoter-share pledge was identified in the reviewed disclosures; a historical NCD regulatory matter was settled with SEBI in February 2026 for INR 8.75 lakh

Identified recurring FY25 RPTs were approximately INR 26.2 Cr, equivalent to approximately 1.1% of FY25 total income of INR 2,386.4 Cr

Based on market capitalisation of INR 10,775.5 Cr, FY26 debt of INR 12,819.7 Cr and cash/bank balances of INR 1,156.2 Cr, estimated EV is INR 22,439.0 Cr. Against mechanical EBITDA of INR 1,739.3 Cr, EV/EBITDA is approximately 12.9x

The Company is valued at 2.7x P/B, based on market capitalisation of INR 10,775.5 Cr against FY26 total equity of approximately INR 3,981.9 Cr

Indicative OTC price stood at approximately INR 745.0/share on August 1, 2026, representing a 15.8% decline over 30 days