Sakthi Finance Ltd — Important, 15-07-2026: Company Update

Sakthi Finance Limited (SFL) has received a reaffirmation of its credit ratings from ICRA Limited. Non-Convertible Debentures (NCDs) and Fixed Deposits are rated [ICRA]BBB(Stable), while Long Term/Short Term Fund-based Banking Facilities are rated [ICRA]BBB(Stable)/[ICRA]A2. The total rated amount stands at ₹1,245.74 crore. This reaffirmation considers SFL’s established retail financing operations and adequate capitalisation, with gearing at 5.4 times. Key challenges include a geographically concentrated portfolio and subdued profitability (PAT 1.2%). Asset quality is moderate, with Gross Stage 3 assets at 4.76%. The stable outlook anticipates steady asset quality and capitalisation alongside modest growth. Separately, an NCD rating of ₹107.38 crore was withdrawn due to maturity and full repayment.