Mumbai-based InCred Financial Services, the lending arm of InCred Holdings, reported a strong financial performance for FY26, posting a 17% year-on-year increase in profit as it prepares for its proposed initial public offering (IPO).
According to the company’s consolidated financial statements, operating revenue rose 36% to ₹2,546 crore in FY26, compared with ₹1,872 crore in FY25. The growth was driven by higher loan disbursements and a significant rise in interest income across its diversified lending portfolio.
The robust earnings come as parent company InCred Holdings moves forward with its IPO plans after filing an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI).
Interest Income Continues to Drive Revenue Growth
Founded in 2017 by Bhupinder Singh, InCred Finance operates as a diversified retail-focused Non-Banking Financial Company (NBFC), offering products across personal loans, student loans, secured business loans, specialised MSME financing, and lending to financial institutions.
Interest income remained the company’s primary revenue driver, accounting for 91% of total operating revenue. During FY26, interest income increased 38% year-on-year to ₹2,331 crore.
The company also generated ₹213 crore through fees and commission income, while the remaining operating revenue came from fair value gains on financial assets. Additionally, ₹20 crore in non-operating income pushed total income to ₹2,567 crore during the fiscal year.
Higher Borrowing Costs and Credit Losses Impact Expenses
As lending activity expanded, InCred Finance also witnessed a sharp rise in operating expenses.
Finance costs, which represented 47% of total expenditure, climbed 47% year-on-year to ₹922 crore, reflecting increased borrowing to support loan growth.
Employee benefit expenses also rose 23% to ₹416 crore, as the company continued investing in talent and business expansion.
Meanwhile, losses from impaired financial instruments, including loan write-offs and provisioning, increased 62% to ₹305 crore, highlighting higher credit costs associated with portfolio growth.
Depreciation, legal expenses, collection costs, advertising, travel, and other operating overheads contributed to an overall 43% increase in total expenditure, which reached ₹1,970 crore in FY26, compared to ₹1,381 crore in the previous fiscal year.
Profit Climbs to ₹438 Crore Despite Rising Costs
Despite higher funding costs and increased provisions, InCred Finance maintained healthy profitability.
The company reported a net profit of ₹438 crore in FY26, up from ₹374 crore in FY25, representing a 17% year-on-year increase.
The improvement was supported by strong loan disbursement growth and continued expansion across its retail and MSME lending businesses.
According to the financial statements, InCred spent approximately ₹0.80 to generate every ₹1 of operating revenue, indicating continued operational efficiency despite rising expenses.
Balance Sheet Strengthens Ahead of Public Listing
As of March 2026, InCred Finance reported total financial assets of ₹15,243 crore, reflecting continued growth in its lending portfolio.
The company also maintained a cash and bank balance of ₹824 crore, providing liquidity to support future lending operations and business expansion.
The strengthening balance sheet positions the company well as it prepares for its planned public market debut.
IPO Plans Gather Momentum
InCred Finance’s strong FY26 performance comes ahead of InCred Holdings’ proposed IPO.
The parent company recently filed an updated draft red herring prospectus (UDRHP) with SEBI, proposing a fresh issue of equity shares worth ₹1,250 crore along with an offer for sale (OFS) of up to 9.90 crore shares.
Existing shareholders participating in the OFS include KKR, MNI Ventures, Mohandas Pai Family, Moore Strategic, V’Ocean Investments, and several other investors.
The IPO is expected to strengthen InCred Holdings’ capital base while providing liquidity to existing shareholders.
InCred Strengthens Position in India’s Lending Sector
The FY26 results underscore InCred Finance’s continued growth as one of India’s rapidly expanding NBFCs.
With rising revenue, sustained profitability, a growing loan book, and a strong balance sheet, the company enters its IPO phase from a position of financial strength. As demand for retail and MSME credit continues to increase across India, InCred Finance is well positioned to capitalize on long-term lending opportunities while further expanding its presence in the country’s competitive financial services sector.
