• Kogta Financial's gross non-performing asset (GNPA) ratio increased to 3.3% as of March 31, 2025, from 2.6% the previous year, primarily due to delinquencies in the tractor and construction equipment segments. This rise in GNPA negatively impacted the company's overall profitability.
• The company's return on managed assets decreased to 1.8% in the June quarter of 2025, down from 2.4% in FY25 and 2.7% in FY24, due to higher credit costs. Despite this, Kogta Financial's loan portfolio has experienced a compound annual growth rate (CAGR) of 43% over the past five years.
• Kogta Financial's assets under management (AUM) reached Rs 6,943 crore as of June 30, 2025, a rise from Rs 6,508 crore in the March quarter, and net profit for FY25 was Rs 166.2 crore, higher than Rs 141 crore in FY24. The company last raised $148 million in June 2024 from Ontario Teachers' Pension Plan Board (OTPP) to drive growth and expand its regional presence.
• The 'wheels segment,' which includes vehicle, construction equipment, and tractor loans, constitutes 82% of Kogta Financial's portfolio, while MSME loans and loans against property make up the remaining 18%. Kogta Financial operates through 263 branches across 12 states, with Rajasthan, Maharashtra, and Gujarat accounting for 66% of its business.

Ajay Ramanathan

Kogta Financial, which is backed by investors such as Morgan Stanley PE Asia, Multiples PE, and Ontario Teachers' Pension Plan (OTPP), recorded a spike in bad loans in the financial year ended March 2025, and this weighed on overall profitability.

The Jaipur-based company’s gross non-performing asset (GNPA) ratio rose to 3.3% ......

Bottomline: Asset quality woes weigh on PE-backed Kogta Financial; AUM growth sustains

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Kogta Financial, which is backed by investors such as Morgan Stanley PE Asia, Multiples PE, and Ontario Teachers&#39; Pension Plan (OTPP), recorded a spike...

Kogta Financial

Morgan Stanley PE Asia

Ontario Teachers’ Pension Plan

Creador

Canada Pension Plan Investment Board

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Bottomline: Asset quality woes weigh on PE-backed Kogta Financial; AUM growth sustains

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