Company Overview
Purple Finance Limited (CIN: L67120MH1993PLC075037) is an RBI-registered NBFC-ICC focused on secured MSME lending with a technology-driven phygital model across Tier 2-4 markets. Founded in 2022, the company operates 46 branches across 7 states with 462 employees.
Financial Performance FY 2025-26
Total income increased 222% to ₹4,783.50 lakhs from ₹1,485.00 lakhs in FY25, driven by interest income of ₹2,833.81 lakhs and net gains on fair value changes of ₹1,428.98 lakhs. The company reported a net loss of ₹644.10 lakhs (improved from ₹1,554.82 lakhs loss in FY25) but achieved profitability in Q4 FY26 with PBT of ₹42 lakhs. AUM grew 142% to ₹249.01 crore with cumulative disbursements of ₹262.10 crore since inception.
Operational Highlights
Asset quality remained stable with Gross NPA at 1.48% and Net NPA at 1.13%. The company secured BBB- (Stable) rating from India Ratings & Research and raised significant capital through equity commitments of ₹148 crore and debt tie-ups of ₹151 crore. Paid-up capital increased to ₹58.92 crore from ₹44.82 crore through rights issue and warrant conversions.
Risk Management Framework
The company maintains comprehensive risk management covering credit, liquidity, and market risk. Credit risk is managed through ECL methodology with provisions calculated under both RBI IRAC norms and internal ECL policy (adopting the higher provision). Liquidity risk is managed via maturity profiling with total financial liabilities of ₹11,058.03 lakhs. Interest rate sensitivity analysis shows ₹13.68 lakh PBT impact for 25bps rate change, with significant fixed-rate loan assets of ₹16,770.95 lakhs.
Corporate Governance & AGM Details
The 32nd AGM is scheduled for June 26, 2026, with resolutions including director reappointments, remuneration approvals for key management personnel (₹2.90 crores for Mr. Amitabh Chaturvedi and ₹1.10 crores for Mr. Sabyasachi Rath), and borrowing limit increases to ₹750 crore. The board comprises 8 directors (2 executive, 6 non-executive including 4 independent directors).
Capital Structure & ESOP
Authorized share capital increased from ₹55.60 crore to ₹82.60 crore during FY26. The company issued ₹25 crore listed NCDs and ₹5 crore unlisted subordinated NCDs. The ESOP Scheme 2022 has 30,89,000 options in force with FY26 expense recognition of ₹45.27 lakhs.
Regulatory Compliance & Contingencies
The company paid ₹11,800 SOP fines to BSE for delay in record date intimation and voting results filing. Contingent liabilities include performance-based variable payments to Mr. Amitabh Chaturvedi and tax litigation involving ₹29.15 lakhs for Assessment Year 2016-17.
Forward Outlook
Management remains focused on secured MSME lending with continued investments in branch network expansion, technology infrastructure, and talent acquisition, confident about achieving sustainable profitability as the business scales.