The reaffirmed IVR A–/Stable rating underscores Indel Money’s strong capitalisation, steady AUM growth, and experienced management.
Infomerics Ratings has reaffirmed its rating for the proposed Non-Convertible Debentures (NCDs) of Indel Money Limited (IML) at IVR A–/Stable (IVR Single A Minus with Stable Outlook).
The rating reflects Infomerics’ confidence in Indel Money’s experienced promoters and management team, its established network, improving financial profile, comfortable capitalisation, and diversified funding base.
The ‘Stable’ outlook indicates Infomerics’ expectation of sustained growth in Assets Under Management (AUM) and asset quality through FY26 and FY27, supported by promoter capital infusion and prudent risk management.
This rating review was based on the revised term sheet shared by the company and conducted at Indel Money’s request.
Indel Money continues to maintain strong capitalisation, with net worth at ₹364.74 crore as of June 30, 2025 (₹319.45 crore as of March 31, 2025), supported by continuous promoter infusions.
During FY25 (April 1, 2024 – March 31, 2025), promoters infused ₹100 crore, followed by ₹21.85 crore in Q1 FY26. The company plans to further infuse around ₹80 crore during FY26 to support growth.
The company’s gearing ratio stood at 4.64x at the end of Q1 FY26 (unaudited), compared with 4.44x in FY25, reflecting higher borrowings. Infomerics expects capitalisation to remain comfortable, supported by equity infusions and growing profitability. Gearing levels are projected to improve from FY26 onwards.
Indel Money’s AUM has grown at a CAGR of 52.2% over the past three years, reaching ₹2,334.44 crore in FY25, up from ₹1,533.83 crore in FY24 and ₹1,153.89 crore in FY23. Growth continued into Q1 FY26 (unaudited), with AUM rising to ₹2,544.07 crore.
The company’s portfolio remains predominantly gold loans (around 93%), with business/MSME loans and digital personal loans making up the remainder. Indel Money also holds an AD-II category license from the Reserve Bank of India, strengthening its financial services portfolio.
Driven by robust AUM growth, net interest income rose from ₹100.28 crore in FY23 to ₹174.40 crore in FY25, with ₹62.70 crore recorded as of June 30, 2025.
While Net Interest Margin (NIM) moderated to 9.02% in FY25 from 12.59% in FY24 due to higher borrowing costs and competitive gold loan pricing, it remained strong. As of Q1 FY26, NIM improved to 10.26%, reflecting healthy profitability.
Technology has moved from the back office to the core of business strategy in the banking, financial services, and insurance (BFSI) sector, according to KNC Nair, Chief Information Officer of Indel Money. In a recent interview, Nair highlighted how data and digital systems now play a decisive role in driving growth, managing risk, and building customer trust.
Nair noted that the role of the CIO has evolved significantly over the years. Once seen largely as a support function, the position has become a key business leadership role, closely aligned with operations, compliance, and long-term strategy.
Indel Money’s own transformation mirrors this shift. Originally a branch-led gold loan company, the NBFC has transitioned into a largely paperless, digital-first organisation. Today, the entire customer lifecycle—from onboarding and gold appraisal to loan servicing and closure—is handled through digital platforms. Customer identity verification is carried out using Aadhaar- and PAN-based eKYC, while almost all transactions are processed through banking channels, bringing cash usage down to near zero.
Regulatory compliance and data protection form a critical part of Indel Money’s digital framework. The company adheres to Reserve Bank of India guidelines and the Digital Personal Data Protection (DPDP) Act, supported by robust access controls, regular security audits, and systems that allow granular control of customer data.
Looking ahead, Indel Money is adopting a modern, API-driven technology architecture to enable co-lending models and partnerships with banks and other financial institutions. The company is also selectively deploying artificial intelligence across functions such as gold appraisal assistance, fraud detection, credit evaluation, and branch-level security.
According to Nair, technology at Indel Money is no longer a supporting layer but the foundation of the organisation’s operations. In a highly regulated financial environment, he said, digital systems are essential for ensuring trust, effective risk management, and sustainable business growth.
Read the full interview!
Indel Corporation is proud to share that we were recently recognized by the Palakkad Police for our continued social responsibility efforts and community-focused initiatives. This honour reflects our longstanding commitment to supporting public welfare, promoting safety awareness, and contributing positively to society.
We extend our sincere gratitude to the Palakkad Police for this recognition and remain dedicated to driving meaningful impact through our initiatives.
