Now Reading: NewTap Finance FY26 profit more than doubles to Rs 2.4 crore
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NewTap Finance FY26 profit more than doubles to Rs 2.4 crore
CRED-backed NewTap Finance more than doubled its net profit to Rs 2.4 crore in FY26 from Rs 1 crore, while total income rose 116% to Rs 259 crore, according to CRISIL Ratings.…
The Story in Brief
CRED-backed NewTap Finance more than doubled its net profit to Rs 2.4 crore in FY26 from Rs 1 crore, while total income rose 116% to Rs 259 crore, according to CRISIL Ratings. Its managed assets under management reached Rs 4,582 crore, having grown at a compound annual growth rate of about 156% between FY23 and FY26.
About 81% of the loan portfolio was held off-book through non-first-loss default guarantee arrangements, with co-lending driving much of the business. However, gross Stage 3 assets rose to 0.94% from 0.77%. Collection efficiency averaged above 97%, and borrowers with credit scores above 750 made up about 90% of AUM. CRED has invested Rs 56.4 crore in equity and Rs 80 crore in subordinated debt.
The Indian Opinion
The easy story is that rapid growth proves digital lending has cracked the market. The darker version is that off-book loans make risks disappear. Both are incomplete. NewTap’s model limits the portfolio kept on its balance sheet, but CRED and its lending partners still face losses if unsecured borrowers default. The useful test is whether Stage 3 assets stay near current levels as the loan book expands, not whether profit rises from a small base. Will the 0.94% figure fall or climb next year?
Source: inc42.com
This story was synthesised by AI from the source linked above.
