e-commerce
InCred Financial Q1 profit jumps 82 per cent on strong loan growth
Loan book rises to Rs 14,809 crore as bad loans improve ahead of IPO
MUMBAI: InCred is proving that lending can be a numbers game and this quarter, the numbers are stacking up in its favour. The retail-focused non-banking financial company (NBFC) reported a sharp rise in first-quarter profit, supported by robust loan growth, improving asset quality and tighter operating efficiency as its parent prepares for a public listing.
InCred Financial Services Ltd, a wholly owned subsidiary of IPO-bound InCred Holdings Ltd, posted a net profit of Rs 172 crore for the quarter ended June 2026, up 82.3 per cent from Rs 94 crore in the corresponding quarter last year.
The company attributed the strong performance to sustained growth across its lending businesses, continued operating leverage and stable credit quality.
Its loan book, excluding assigned loans, expanded to Rs 14,809 crore, driven by healthy demand across all five lending verticals and continued traction among its target customer segments.
Operational efficiency also improved during the quarter. The cost-to-income ratio narrowed to 44.6 per cent in Q1 FY27 from 45.8 per cent in the year-ago period, reflecting stronger operating leverage as the business scaled.
Asset quality remained resilient despite the rapid expansion. Gross non-performing assets (GNPA) improved to 2.0 per cent from 2.3 per cent a year earlier, while net non-performing assets (NNPA) declined to 0.7 per cent from 0.9 per cent.
The lender said its credit performance continues to be supported by a risk-first underwriting approach powered by an AI-enabled proprietary technology platform, allowing it to maintain stable asset quality while growing its loan portfolio.
The company also strengthened its balance sheet during the quarter, ending June with an adjusted net worth of Rs 4,244 crore, providing a solid capital base to support future expansion.
The latest performance comes at a significant juncture for the group, with InCred Holdings preparing for its initial public offering. Strong earnings growth, a rapidly expanding loan book and improving asset quality are likely to bolster investor confidence as the company seeks to position itself among India’s fast-growing new-age NBFCs.
