Credit Wise Capital Bonds Explained: NCD Structure, Rating & Key Risks

Introduction

A coupon of 10% to 11.5% per annum looks generous next to a bank FD, but in bonds a higher coupon is the price of higher risk. Credit Wise Capital has issued several non-convertible debentures (NCDs), each with its own coupon, maturity and terms. This guide explains the issuer, the structure, the CRISIL rating and the risks to weigh first.

Credit Wise Capital: issuer overview

Credit Wise Capital Private Limited (CWC) is a non-deposit-taking NBFC founded in 2018 and headquartered in Mumbai. It focuses on two-wheeler finance through a digital, branchless model, operates in more than 10 states, and lends for 2 to 3 years on average. AUM grew from ₹489 crore in March 2024 to ₹722 crore in March 2026 and ₹762 crore in June 2026. About 15% was off-book in June 2026 (16.8% in March 2026).

Founder Aalesh Avlani started the company, and CEO Gurpreet Singh Sodhi brings over three decades of experience in the automobile, banking and NBFC sectors. Chief Risk and Operations Officer Dhananjay Tiwari has more than 35 years in financial services. In November 2023 CWC bought 80% of Analytics fox Software, which serves NBFCs and fintech's, and CRISIL analyzed the group on a consolidated basis.

How Credit Wise NCDs work

An NCD is a debt security: you lend to the issuer, it pays interest and repays principal on set terms, and it never converts into equity. Credit Wise NCDs are generally described as listed and secured, with assets charged to a debenture trustee on behalf of investors, but this varies by series. CWC has several NCDs outstanding, so no single coupon, maturity or yield describes them all.

NCD structure: what to check

Check the exact ISIN, face value, coupon, payment frequency, maturity, security cover, trustee and any call or put option. Face value differs by series: ₹1 lakh for INE0LN107063 and ₹10,000 for INE0LN107089, per platform listings.

Series-level details such as face value, security cover and trustee should be confirmed in the information memorandum or exchange disclosure for the ISIN.

Payment frequency, principal repayment schedule, security cover and trustee differ by series and should be confirmed for the specific ISIN in the information memorandum. Coupons are paid on face value, while yield depends on the price you pay, so compare yield to maturity and not just the coupon.

Understanding the credit rating

CRISIL rates Credit Wise's NCDs BBB (placed on 'Rating Watch with Developing Implications' on 13 October 2026; BBB/Stable earlier), as per its rationale dated 13 October 2026. BBB indicates moderate credit risk and sits near the bottom of the investment-grade range. The rating rose from BBB-/Positive in early 2025 to BBB/Stable by August 2025, and CRISIL reaffirmed BBB/Stable through August 2026.

CRISIL placed the ratings on watch after the statutory auditor's resignation. It said it will resolve the watch once a new auditor is appointed and second-quarter FY2027 results are published on time. A rating is an opinion, not a repayment guarantee.

In June 2026, CRISIL assigned BBB/Stable to a new ₹30 crore NCD programmed. CRISIL's October 13, 2026 rationale lists about ₹178 crore of rated NCDs (including a ₹33 crore issue, INE0LN107097, allotted on August 27, 2026), alongside ₹20 crore of commercial paper rated A2 and bank loans, whose rated limit rose from ₹150 crore to ₹200 crore.

CRISIL's bank facility rating history shows the direction of travel:

What supports it: Healthy capitalization (net worth ₹179 crore, gearing 2.8x, ₹60 crore equity from Trident Growth Partners) and experienced management.

What constrains it: Two-wheeler asset quality, an unseasoned book and modest earnings, with profit after tax of ₹0.9 crore in FY26 against ₹4.7 crore in FY25.

Liquidity: Adequate, but ₹30.5 crore of cash on 31 May 2026 covered just over a month of repayments.

Reading the table: leverage has headroom, but not much if growth outpaces equity, while an upgrade needs profitability far above today's level. That is why new equity matters.

Financial snapshot

Consolidated figures per CRISIL, in ₹ crore unless stated. Capital is healthy, but profit has thinned as the book has grown.

Funding comes from a spread of lenders led by AU Small Finance Bank, with other lenders including SBI, IDFC FIRST Bank, YES Bank, Suryoday, Unity, Utkarsh, Capital, Ujjivan, Federal Bank, ICICI Bank and ESAF, alongside NCDs and commercial paper. CRISIL rates liquidity adequate: asset-liability gaps are positive in every bucket under five years, and CWC is understood not to make fresh disbursements unless it can service maturing debt.

Earnings in detail: Total income rose to ₹154 crore in FY26 from ₹116 crore, and net interest income improved to 8.9% of average managed assets from 8.6%. But credit costs rose to 3% from 2.6% and operating expenses to 10.9% from 10.5%, which squeezed return on managed assets to 0.1%. These three lines show whether profit can recover as the book grows.

Key risks investors should evaluate

• Credit risk: BBB means moderate default risk, so interest or principal can be delayed or lost.

• Asset quality: Two-wheeler borrowers are sensitive to income shocks, and the book is not yet seasoned.

• Thin profitability: Return on managed assets of 0.1% leaves little cushion for higher credit losses.

• Short liquidity cover: About a month of repayments, so access to bank and market funding matters.

• Equity dependence: CRISIL (October 13, 2026) expects an additional equity infusion in the near term; check whether it has been completed.

• Security cover: Security cover may be a small buffer, and recoveries take time.

• Exit liquidity: Listing does not guarantee active trading, so early exits may need a discount.

• Interest-rate risk: Rising yields cut bond prices, and falling rates mean reinvesting at less.

What the coupon is paying for

A BBB NBFC pays more than a AAA bond or a bank FD because investors are compensated for the chance of loss. Bank FDs carry deposit insurance up to ₹5 lakh; NCDs do not. Many investors limit exposure to any single lower-rated issuer to a small share of their fixed-income holdings. Coupon income is taxed at your slab rate.

Quick investor summary

• Never judge an NCD on a coupon alone.

• Verify terms and rating against the exact ISIN.

• Be ready to hold to maturity if trading is thin.

Who may consider it and how to buy

This may suit investors who understand credit risk, can hold to maturity and want some higher-yielding exposure within a diversified bond portfolio. It does not suit anyone who needs capital protection, easy liquidity or money for near-term goals.

To buy, you need a demat account with NSDL or CDSL. Listed NCDs are available through SEBI-registered online bond platforms and brokers, so compare price, yield to maturity and charges before ordering.

Yield, payouts and what to track

Yields differ by series because price and remaining life differ. Yield to maturity moves daily with market prices, so check live prices for the specific ISIN.

What to track every quarter

• Gearing against the 3.5x downgrade marker.

• Adjusted 90+ dpd, which was 4.2% in March 2026 and 4.4% in June 2026.

• Return on managed assets against the 1.5% upgrade marker.

• Cash balance against debt falling due in the next one to three months.

• Completion of the additional equity infusion CRISIL expects.

• Resolution of CRISIL's rating watch (new statutory auditor and timely second-quarter FY2027 results), any CRISIL rating update and BSE announcements, including record dates for your ISIN.

Published By:

BondScanner, a SEBI-registered Online Bond Platform Provider (OBPP). Links to BondScanner's platform and app listings are for educational and informational discovery purposes only.

Disclaimer:

This blog is intended solely for educational and informational purposes. The instruments, issuer categories, yield ranges, and examples mentioned herein are illustrative and should not be construed as investment advice or recommendations. BondScanner is a SEBI-registered OBPP and does not provide personalised investment advice. Nothing in this article is a solicitation to buy or sell any security. Fixed and coupon returns described in this article do not constitute guaranteed or assured returns. Investments in debt securities are subject to market, credit, and default risks, including delay and/or default in payment. Investors must read all offer-related documents carefully before investing.

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