InCred Financial Services has reported strong financial results for the financial year ended March 31, 2026. The non-banking financial company (NBFC) recorded healthy growth in both revenue and profit, supported by higher loan disbursements and a growing customer base.
The company is also preparing for its proposed ₹5,000 crore initial public offering (IPO), making FY26 an important year in its growth journey. While its business continued to expand, the company also saw higher expenses due to increased borrowing costs and loan-related provisions.
Revenue and Profit Grow on Strong Loan Demand
InCred Financial Services reported consolidated revenue from operations of about ₹2,546 crore in FY26, up 36% from the previous financial year.
Most of the company’s income came from interest earned on loans. Interest income rose 38% year-on-year to around ₹2,331 crore and made up nearly 91% of the total revenue. The company also earned ₹213 crore from fees and commissions, while other income added around ₹20 crore.
The company’s profit also improved during the year. Consolidated profit after tax (PAT) increased 17% to ₹438 crore compared to FY25.
Its standalone performance during the January-March quarter was even stronger. Net profit in Q4 FY26 jumped 50.43% to ₹132.35 crore, while sales increased nearly 30% to ₹700.09 crore from the same quarter last year.
However, expanding the business also increased costs. Total expenses rose 43% to ₹1,970 crore during FY26. Finance costs increased 47% to ₹922 crore, employee expenses went up 23% to ₹416 crore, and losses from bad loans and loan write-offs climbed 62% to ₹305 crore.
Even with higher expenses, the company maintained good operating efficiency, spending around ₹0.80 to earn every ₹1 of revenue.
Loan Book Expands as Company Gets Ready for IPO
InCred continued to grow its lending business during FY26. By the end of March 2026, its assets under management (AUM) reached ₹17,748 crore. The company also reported total financial assets of ₹15,243 crore, including ₹824 crore in cash and bank balances.
The company’s loan portfolio is still largely made up of unsecured loans. Personal loans contribute nearly 56% of the total portfolio, making them the biggest business segment. Student loans account for around one-fifth of the loan book, followed by MSME loans, secured business loans, loans against property, and lending to financial institutions.
Despite having a large share of unsecured loans, InCred has maintained healthy asset quality. Its net non-performing assets (NPA) have remained below 1% for the last three years. However, gross Stage 3 assets increased slightly by the end of FY26.
The strong financial performance comes as InCred Holdings prepares to launch its proposed ₹5,000 crore IPO. The public issue will include a fresh issue of ₹1,250 crore and an offer for sale (OFS) of up to 9.90 crore equity shares by existing shareholders.
The company plans to use the money raised through the fresh issue to strengthen the capital base of its wholly-owned subsidiary, InCred Financial Services Limited. The funds will also support future lending and improve the company’s capital position.
Several existing investors are expected to sell part of their holdings through the OFS. After approvals, the company’s shares are expected to be listed on both the BSE and NSE.
Challenges Remain Despite Strong Growth
Although InCred has reported strong growth, it also faces some important challenges.
One of the biggest risks is its high exposure to unsecured loans, especially personal loans. Recent steps taken by the Reserve Bank of India (RBI) to tighten rules for unsecured lending may affect future loan growth and increase compliance requirements for NBFCs.
The student loan business also faces uncertainty because of changing immigration policies in the United States. A large share of InCred’s education loans is given to students planning to study in the US. Stricter visa rules and concerns over job opportunities have reduced demand for new student loans in this segment.
The company has also disclosed past regulatory investigations related to an old wholesale loan given to Amtek Auto. While the matter relates to a previous transaction, it remains part of the company’s IPO disclosures.
To reduce its dependence on unsecured lending, InCred has started expanding its secured loan business. It recently acquired TruCap Finance’s gold loan business as part of this strategy.
Founded by former Deutsche Bank executive Bhupinder Singh, InCred has grown quickly over the past few years. The company became a unicorn in 2023 after crossing a valuation of $1 billion and has attracted investments from several well-known investors.
With strong revenue growth, higher profits, a growing loan book, and plans to raise fresh capital through its IPO, InCred is preparing for its next stage of growth. Going forward, its ability to maintain loan quality, manage regulations, and build a more balanced lending portfolio will play an important role in its long-term success.