InCred Financial Services Reports Robust Growth for FY27

InCred Financial Services, the lending division of InCred Holdings, has maintained its growth trajectory into FY27, following a remarkable financial performance in FY26. The firm recorded a 31% year-on-year rise in operating revenue, with profit witnessing an impressive 83% increase, reaching Rs 172 crore in Q1 FY27. As per standalone financial data obtained from BSE, the Mumbai-based company’s operational revenue escalated to Rs 759 crore in Q1 FY27, up from Rs 580 crore in Q1 FY26.

Overview of InCred Finance

Founded in 2017 by Bhupinder Singh, InCred Finance operates as a retail-centric NBFC, offering a range of products including personal loans, education loans, secured business loans, MSME financing, and loaning solutions for financial institutions.

Revenue Breakdown

Interest income has remained the predominant source of revenue for the company, constituting nearly 90% of its operational revenue. Revenues from this category climbed to Rs 682 crore in Q1 FY27. Fee and commission income contributed an additional Rs 67 crore, while the balance came from gains related to fair value changes in financial assets. Incorporating Rs 3 crore from non-operating income, InCred Finance’s total income for the quarter reached Rs 762 crore.

Loan Book and Asset Quality

The loan book of InCred Finance (excluding assigned loans) expanded to Rs 14,809 crore by the close of June 2026, bolstered by sustained growth across its five lending sectors. Moreover, the company has reported enhanced asset quality, as gross NPAs improved to 2.0% from 2.3% a year prior, and net NPAs decreased to 0.7% from 0.9%. The net worth of the company stood at Rs 4,244 crore as of June 30, 2026.

Expenditure Overview

Finance costs emerged as the most significant expense for InCred Finance, making up 51% of total costs. These expenses increased by 26% year-on-year to reach Rs 270 crore in Q1 FY27. Employee benefit costs also saw a notable uptick of 39%, amounting to Rs 131 crore during the quarter.

Losses from impaired financial instruments, including loan write-offs, fell by 44% year-on-year, now at Rs 43 crore. Additional expenses, including depreciation, legal fees, collection costs, advertising, travel, and other overheads, pushed the company’s total expenditure up by 15%, rising to Rs 533 crore from Rs 465 crore in Q1 FY26.

Profit Growth

InCred Finance’s profit grew by 83% year-on-year, reaching Rs 172 crore in Q1 FY27, compared to Rs 94 crore recorded in the corresponding quarter of the previous year.