Synopsis:
Pro Fin Capital Services received a non-binding Letter of Intent from Hong Kong’s Excellence Creative to explore acquiring up to 25% stake at Rs 22 crore. The board will review this proposal, marking early-stage talks with potential strategic growth for the firm in trading, credit, and advisory services.
This financial services firm, known for its expertise in capital market operations and investment solutions, is drawing investor attention after a Hong Kong-based company expressed interest in acquiring a significant 25% stake. The article explores this development, its terms, and what it could mean for future strategic growth.
Pro Fin Capital Services Limited‘s stock, with a market capitalisation of Rs. 252 crores, fell to Rs. 8.36, hitting a low of up to 9.22 percent from its previous closing price of Rs. 9.21. However, the stock over the past year has given a return of 184 percent.
What Happened?
Company received a Letter of Intent from Excellence Creative Limited, a company in Hong Kong, about possibly buying up to 25% of Pro Fin’s shares at Rs. 22 per share. This is a preliminary step and not a binding agreement, and it depends on further talks, approvals from Pro Fin’s board, due diligence, and meeting all legal and regulatory requirements.
The company clarified that this letter only begins the discussion stage. Any real progress or agreements will be shared with the stock exchange and disclosed as per regulations, so stakeholders are kept informed. The Board will review the offer in its upcoming meeting, ensuring full transparency throughout the process.
Industry Outlook
India’s financial services sector is experiencing robust growth, with profits expected to nearly double by FY2030 and NBFCs expanding at 16% annually. Private credit investment surged to a record $9 billion in the first half of 2025, up 53% year-on-year. By 2025, the investment corpus in the Indian insurance sector could reach $1 trillion, highlighting the sheer size and potential of this market.
Sector reforms have also made an impact, with the FDI cap in insurance raised from 49% to 74%, and the government announcing an eventual increase to 100% for companies investing all premiums in India. Financial inclusion campaigns led to 6.65 lakh new bank accounts in July 2025 alone, and digitalization, especially through AI, has cut operational timelines by 60% or more, broadening digital customer bases and strengthening security.
Q2 Financial Highlight
The company reported strong growth in Q2FY26 with revenue rising to Rs. 43 crore, up 514% year-on-year from Rs. 7 crore in Q2FY25 and 291% quarter-on-quarter from Rs. 11 crore in Q1FY26. This surge indicates a sharp improvement in business momentum and operational scale compared with previous periods.
Profit also grew impressively to Rs. 13 crore in Q2FY26, marking a 550% YoY rise from Rs. 2 crore and a 333% QoQ increase from Rs. 3 crore. However, over the past three years, profit CAGR remains negative at -8%, while sales CAGR stands modest at 3% and ROE CAGR at 3%, suggesting a recent turnaround after a subdued growth phase.
Written By Fazal Ul Vahab C H
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