What Sakthi Finance does

Sakthi Finance Limited is a public, deposit-taking non-banking financial company (NBFC) registered in Tamil Nadu, India, and listed on the Bombay Stock Exchange under ticker 511066. Founded in 1955 as the Pollachi Credit Society Private Limited to serve hire-purchase needs of Sakthi Group's TELCO dealerships, it was renamed and converted to a public company in 1967, and has operated continuously for over 70 years as a specialist financier of used commercial vehicles and construction equipment. The company is part of the Sakthi Group, a US$ 2.0 billion South Indian industrial conglomerate, and operates more than 50 branches across five South Indian states — Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana — with 501–1,000 employees.

The core lending business targets small road transport operators (SRTOs) and medium road transport operators (MRTOs), contractors and equipment owners, offering refinancing for used commercial vehicles up to 15 years old, financing for new and used construction equipment (backhoe loaders, excavators, cranes) up to 10 years old, third-party settlements, tyre loans and top-up advances for existing borrowers. Interest rates range from 20–28% depending on asset class and credit profile, reflecting the small-ticket, higher-risk borrower segment. On the liability side, the company raises funds through fixed deposits (8.25–9.25% p.a., with senior-citizen add-ons), recurring Non-Convertible Debenture public issues and subordinated bond private placements, distributed partly through authorized distributor Sakthi Financial Services. Operating technology is built on Salesforce CRM for customer relationship management and performance tracking; the company has no mobile app or proprietary digital lending platform.

FY2026 (year ended March 2026) sales were Rs 210.71 crore with net profit of Rs 17.25 crore (+3.60% YoY), and Q4 FY2026 net profit grew 22.44% YoY to Rs 5.62 crore. The business model is fundamentally spread-driven NBFC economics: borrow at retail deposit and NCD rates, lend at substantially higher yields to a fragmented, long-tail borrower base in South India, and capture the net interest margin while managing asset-quality risk on used-asset-secured loans.

Name

Sakthi Finance

Legal name

Sakthi Finance Limited

Website

https://sakthifinance.com

Company type

Public

Founded year

1955

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Sakthi Finance is a public, deposit-taking Indian NBFC specializing in used commercial vehicle and construction equipment financing for small and medium transport operators and contractors across South India via 50+ branches.

Ownership category

akta.pro rank

Product category

Commercial Vehicle Financing

NAICS

Sales Financing (522220), Sales Financing (52222)

SIC

Miscellaneous Business Credit Institution (6159), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Commercial Trucking & Heavy Equipment Vehicle Finance (FSAKADAI)

akta.pro secondary industry

Fleet & Commercial Vehicle Finance (FSAKADAE)

Keywords

• Commercial vehicle financing
• Construction equipment loans
• Fixed deposit schemes
• Non-banking financial services
• Vehicle refinancing

Headquarters

HQ city

Coimbatore

HQ country

India

HQ region

Asia

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Interest Income from Vehicle Loans: Primary revenue from interest charged on commercial vehicle loans and construction equipment financing. The company specializes in used commercial vehicle loans and construction equipment loans.
2. Fixed Deposit Schemes: Accepts fixed deposits from investors through authorized distributor Sakthi Financial Services. Offers fixed income and cumulative income schemes with terms ranging from 15 to 60 months.
3. Non-Convertible Debentures (NCDs): Issues NCDs through public issues and private placements. Has conducted multiple public issues including July 2025, Feb 2025, May 2024, Feb 2024, and previous years.
4. Subordinated Bonds: Issues subordinated bonds with minimum investment of Rs. 50,000, tenure of 61 months, and fixed interest rate of 10% (cumulative yield 12.83%).

Pricing tiers

Distribution channels3 records

Marketing channels3 records

Core offering

Sakthi Finance is a deposit-taking non-banking financial company (NBFC) that primarily finances used commercial vehicles (trucks, buses, tippers, tankers, light commercial vehicles) and construction equipment (excavators, wheel loaders, backhoe loaders, skid steer loaders) for Small and Medium Road Transport Operators (SRTOs/MRTOs) and contractors. It also mobilizes funds through fixed deposits, NCD public issues, and subordinated bonds.

Product overview

Sakthi Finance operates as a Non-Banking Financial Company (NBFC) offering a focused portfolio of financing and investment products. The core lending business centers on Used Commercial Vehicle Financing and Construction Equipment Financing, both targeting Small and Medium Road Transport Operators (SRTOs/MRTOs) in South India. Value Added Services including tyre loans and top-up advances complement the lending products for existing customers. For investors, the company offers Fixed Deposits, NCD Public Issues, and Subordinated Bonds with varying tenures and interest rate structures. The company maintains a presence across more than 50 branches in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, and Telangana.

Differentiator

Problem solved

Functional benefit

Products and services

• Used Commercial Vehicle Financing

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Six partnerships are on record, tiered minor and core.

• ABT MotorsminorOthersPart of the Sakthi Group ecosystem. ABT Motors is a group company of Sakthi Group, which is the parent conglomerate of Sakthi Finance.
• Sakthi Financial Services (SFS)coreChannel Partner/ Reseller/ DistributorAuthorized distributor for fixed deposit schemes. SFS distributes Sakthi Finance's fixed deposit investment products to investors.
• Bonanza Portfolio LimitedminorGTM or Marketing PartnerLead Manager for NCD public issues including the July 2025 NCD public issue. Acts as merchant banker for debt securities issuance.
• Dalmia Securities Private LimitedminorGTM or Marketing PartnerLead Manager for multiple NCD public issues including February 2024, 2023, 2022, 2021, 2020 issues. Acts as merchant banker for debt securities offerings.
• MUFG Intime India Private LimitedcoreOthersRegistrar and Transfer Agent (RTA) for equity and non-convertible debentures. Handles share registry, transfer of securities, and investor services.
• Catalyst Trusteeship LimitedminorOthersDebenture trustee for NCD holders. Located in Pune, Maharashtra. Handles investor grievance redressal for debenture holders.

Scale indicators5 records

Recent moves8 records

Expansion highlights5 records

Direct peers

• Mahindra & Mahindra Financial Services Limited: Captive NBFC of the Mahindra Group financing tractors, commercial vehicles, cars, and SMEs across rural and semi-urban India. Directly comparable to Sakthi on used CV/CE lending and small-fleet operator customer base, with broader product diversification.
• Shriram Transport Finance Company: India's largest NBFC focused on commercial vehicle financing, including used CVs, serving SRTOs and fleet operators across India. Most directly comparable to Sakthi Finance on product mix and customer segment, but at materially larger scale and pan-India footprint.
• Cholamandalam Investment and Finance Company: Large Indian NBFC with a strong vehicle finance business spanning new and used CVs, construction equipment, cars and two-wheelers. Comparable to Sakthi on the CV/CE underwriting focus but operates pan-India and within the larger Murugappa Group.

Regional players

• Sundaram Finance Limited: Chennai-headquartered NBFC with strong South India presence in vehicle finance (cars, commercial vehicles) and SME lending. Comparable to Sakthi on regional concentration, CV financing expertise, and South Indian deposit-raising franchise.

Emerging players

• Manappuram Finance Limited: Indian NBFC historically focused on gold loans now diversifying into vehicle and SME finance. Comparable to Sakthi as a public-listed deposit-taking NBFC, with a similar funding profile but different core asset class.

Broad incumbents

• Bajaj Finance Limited: India's largest diversified NBFC offering consumer durable, two-wheeler, commercial, and SME loans. Comparable to Sakthi as a deposit/NCD-raising NBFC but with vastly greater scale, pan-India reach, and digital infrastructure.
• Tata Capital Limited: Tata Group NBFC offering commercial vehicle, construction equipment, and SME financing among other products. Comparable to Sakthi on CV/CE asset finance exposure, though Tata Capital operates a much broader portfolio and pan-India network.

Others

• SKS Microfinance (now Bharat Microfinance / merged entities): Indian NBFC focused on micro and small business lending. Adjacent peer to Sakthi in serving underbanked SMB borrowers, though operating model and ticket sizes differ from used-CV asset finance.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sakthi Finance