Auxilo Finserve Limited has built a strong position in the education loan and student financing space in India. The company started with a vision to support students who want to pursue higher studies in India and abroad. Over the years, Auxilo has grown steadily and created a solid reputation among students, parents, and institutions. FY25 has turned out to be a breakthrough year for the company. Auxilo reported revenue of ₹528 crore from operations and profit after tax of ₹112 crore. These numbers show that the company has scaled up its business successfully and achieved strong profitability.
This article explores Auxilo’s journey, its business model, and the detailed financial performance in FY25. It also explains how Auxilo compares with peers, what challenges it faces, and what the future might look like for the company.
Auxilo’s Business Model
Auxilo focuses on education finance. The company provides loans to students for higher studies in India and overseas. It also funds educational institutions that require money for infrastructure, expansion, or operations. By focusing on the education sector, Auxilo has carved out a unique niche in the Indian NBFC (Non-Banking Financial Company) space.
- Student Loans: Students borrow money to pay tuition fees, living expenses, or travel costs. Auxilo works with Indian and international universities to ensure smooth loan disbursements.
- Institution Loans: Colleges, universities, and schools often need funds to build infrastructure or upgrade facilities. Auxilo provides credit lines to support these requirements.
- Partnerships: Auxilo builds partnerships with educational consultants, test prep agencies, and foreign institutions. These partnerships help the company reach more students and ensure loan servicing happens smoothly.
The education finance market has huge potential in India. Every year, millions of Indian students apply for admission to global universities. Many families do not have the resources to fund higher education fully. Companies like Auxilo fill this gap.
The Growth Story of Auxilo
Auxilo began its journey with a strong focus on technology-driven lending. The company uses data-driven underwriting to assess student potential. Instead of looking only at family income, Auxilo evaluates the student’s academic record, chosen course, future employability, and university ranking. This forward-looking approach helps Auxilo lend to deserving students who may not get loans easily from traditional banks.
In FY24, Auxilo reported revenue of around ₹356 crore and profit of around ₹69 crore. That year itself showed strong growth. But in FY25, the company managed to achieve a leap. With revenue of ₹528 crore and profit of ₹112 crore, Auxilo recorded nearly 50% growth in revenue and over 60% growth in profit.
FY25 Financial Performance
Revenue Growth
Auxilo recorded revenue from operations of ₹528 crore in FY25. This marks a 48.3% jump compared to FY24 revenue of ₹356 crore. The strong revenue growth came from both student loans and institution loans. The increasing demand for higher education finance, especially for international studies, contributed to this surge.
If we include other income, the total revenue stood at ₹543.6 crore. Other income includes interest earned from investments and other non-operational sources.
Profitability
Auxilo reported profit after tax (PAT) of ₹111.9 crore, which rounds to ₹112 crore. This marks a jump of more than 62% compared to FY24 profit of ₹69.2 crore. The strong profitability shows that Auxilo managed its operating expenses and finance costs efficiently.
Loan Book Growth
The most important metric for any NBFC is its loan book. Auxilo’s assets under management (AUM) grew from ₹2,942 crore in March 2024 to ₹4,339 crore in March 2025. This is a growth of nearly 47% in one year.
Loan Disbursements
Auxilo disbursed loans worth ₹1,587 crore during FY25. This shows an increase of around 18% compared to FY24. The higher disbursement figure shows that Auxilo expanded its customer base and built more partnerships with institutions and consultants.
Asset Quality
One of the strongest parts of Auxilo’s FY25 performance is its asset quality. Gross Non-Performing Assets (GNPA) reduced from 0.87% in FY24 to 0.52% in FY25. This decline shows that students and institutions are repaying loans on time. It also highlights that Auxilo has improved its credit appraisal and recovery processes.
Capital Infusion
Auxilo also raised ₹299 crore during FY25 through private placement of equity and convertible preference shares. This capital infusion provides a solid buffer for future growth and strengthens the company’s balance sheet.
Key Drivers of Growth in FY25
Increasing Demand for Education Loans
India sends the second largest number of students abroad after China. Rising aspirations, global exposure, and demand for specialized courses push more students to apply for foreign universities. Education costs abroad are high, and loans bridge this gap. Auxilo benefits from this trend.
Partnerships with Universities and Consultants
Auxilo’s tie-ups with consultants and institutions helped the company reach more students. Consultants act as intermediaries between students and Auxilo, ensuring smooth documentation and approvals. Universities benefit because students with approved loans secure admissions quickly.
Technology and Data-Based Lending
Auxilo uses technology for credit checks, documentation, and monitoring. The company does not depend only on parental income. Instead, it analyses the student’s academic record, chosen field, and future job potential. This system helps in approving loans for deserving candidates while keeping risks under control.
Better Collection Mechanisms
The improvement in asset quality shows that Auxilo has put strong repayment monitoring systems in place. Better follow-ups, EMI reminders, and structured repayment plans have helped in reducing bad loans.
Comparison with Peers
Auxilo competes with other players in the education finance space like Avanse Financial Services, HDFC Credila, and Propelld.
- Avanse: Avanse is backed by Warburg Pincus and has a larger loan book. However, Auxilo has shown better asset quality in FY25.
- HDFC Credila: HDFC Credila has been a pioneer in education loans. However, after HDFC’s merger with HDFC Bank, the future of Credila remains under review. This creates an opportunity for Auxilo to capture more market share.
- Propelld: Propelld is a new-age fintech player focusing on ed-tech financing and skill development loans. Auxilo has a more traditional NBFC structure but with tech-driven operations.
Auxilo has managed to create a balanced position. It combines the reliability of a structured NBFC with the agility of fintech processes.
Challenges for Auxilo
Rising Cost of Funds
Auxilo borrows money from banks and institutions to lend to students. Finance costs stood at ₹282.2 crore in FY25. If interest rates rise in the market, Auxilo’s borrowing costs will also rise. That can reduce margins.
Competition
The education finance market attracts strong players. Banks, NBFCs, and fintechs are all trying to capture the same student base. To stay ahead, Auxilo must offer better service, faster approvals, and competitive interest rates.
Regulatory Environment
The Reserve Bank of India (RBI) regulates NBFCs closely. Any change in rules around capital adequacy, provisioning, or lending norms can affect Auxilo’s business.
Economic Uncertainty
If global job markets slow down, students may delay foreign studies. Currency fluctuations and visa restrictions can also impact demand for education loans.
Future Outlook
Auxilo has built a strong foundation in FY25. With higher revenue, better profits, improved asset quality, and capital support, the company is well-positioned for growth. The demand for higher education, both in India and abroad, will continue to rise. Government policies that support education and skill development also add to the opportunity.
Auxilo can explore new areas such as:
- Skill Development Loans: Short-term professional courses and certifications are gaining demand.
- Ed-Tech Partnerships: Online learning platforms need financing solutions. Auxilo can tap this market.
- Global Expansion: Auxilo can expand its reach in new geographies by tying up with more universities abroad.
- Digital Innovation: More automation in credit checks and EMI collection will reduce costs and improve efficiency.
Conclusion
Auxilo has delivered a strong performance in FY25. The company reported ₹528 crore in revenue and ₹112 crore in profit. The loan book grew by 47%, loan disbursements increased by 18%, and asset quality improved with GNPA dropping to 0.52%. The company raised ₹299 crore capital to fund future growth.
Auxilo’s business model, technology-driven underwriting, and strong partnerships have helped it create a competitive edge. The company faces challenges like rising borrowing costs, competition, and regulatory changes. But with strong fundamentals, Auxilo is set to play a bigger role in India’s education finance market.
The journey ahead looks promising. As more Indian students chase global dreams, companies like Auxilo will continue to play a crucial role in supporting them. FY25 has proved that Auxilo is not only growing but also strengthening its financial health year after year.
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