InCred Financial Services is the primary lending arm of InCred Holdings. InCred Financial Services delivers sharply improved financial performance ahead of public market listing. The non-banking financial company reported a 36% jump in operating revenue for the year, with robust growth in its underlying credit books. The firm’s top-line growth was matched by bottom-line growth, with net margin increasing 17% during this same 12-month period.

Revenue and operational strategy

As per the consolidated financial statements presented by the company, InCred Finance achieved ₹2,546 crore in revenue from operations during FY26. This is a significant increase from the operating revenue of ₹1,872 crore in the previous fiscal year, FY25. The process of positive momentum across its core lending areas supported the business in maintaining an upward growth trend in its total earnings and net profitability before its initial public offer.

InCred Finance was founded in 2017 by Bhupinder Singh and functions as a diversified non-banking financial company (NBFC) that focuses on retail areas. The operational approach is being built around a comprehensive range of credit facilities customised for various market segments. 

These include personal loans, student loans, secured business loans, specialized micro, small and medium enterprise (MSME) financing, and institutional credit given directly to other financial institutions. The detailed analysis of operating revenue shows that interest income from loans continued to be the most significant source of revenue, accounting for 91% of total operating revenue. 

Interest income for FY26 has increased by 38% YoY to ₹2,331 crore. In addition to interest earnings, fee and commission income contributed ₹213 crore to the revenue pool, and the remaining operating earnings came from net gains on fair value changes in financial assets. InCred Finance had reported non-operating income of ₹20 crore, and its total income for FY26 was reduced to ₹2,567 crore.

Balance sheet growth and operational costs

InCred Finance’s total operational and administrative costs increased to accommodate its growing loan portfolio. FY26 saw the company’s total spending increase by 43%, up from ₹1,381 crore during FY25 to ₹1,970 crore. 

The finance cost is the highest specific cost head of the lending company; it is 47 % of total outlay. Finance expenses rose by 47% YoY to reach ₹922 crore in FY26, reflecting the impact of increasing borrowing costs and volume.

Cost of human resources also escalated in proportion to the business size; the employee benefit expenses increased by 23% to reach a figure of ₹416 crore for FY. Losses on impaired financial instruments, which cover loan write-off, witnessed a sharp surge to ₹305 crore in FY26 from the previous year when it was recorded at ₹185 crore. 

Other overhead costs in the total expenditure comprised legal fees, loan collection costs, advertising, travel expenses, and general management overheads. The company spent ₹0.8 to generate every ₹1 of revenue on an efficiency basis in FY26.

The net profit after tax in InCred Finance increased by 17% in FY26 as compared to FY25, rising from ₹374 crore to ₹438 crore, driven by the underlying growth in loans. The total financial assets of the organization amounted to ₹15,243 crore as of March 2026, while the liquidity assets comprised cash and bank balances worth ₹824 crore.

The financial parameters have been included in the current red herring prospectus (RHP) by the parent company InCred Holdings, which has filed an initial draft for the initial public offering (IPO).

The public issue is being made up of a new issue of equity shares of ₹1,250 crore and an offer for sale of up to 9.90 crore equity shares. Key current shareholders in the offer include KKR, MNI Ventures, Mohandas Pai Family, Moore Strategic, V’Ocean Investments, and some other investors seeking to redeem a fraction of their holdings.

Conclusion

InCred Finance recorded strong top-line growth and has maintained consistent profit expansion for FY26. The company reported ₹2,546 crore in operating revenue and ₹438 crore in PAT. This further strengthened the position of the organization within the retail-oriented NBFI industry.

Owing to the asset value of ₹15,243 crore, a strong liquidity position, along with an impending IPO with capital infusion and share sale, the organization has been positioned well for its initial public offering.