NewTap Finance Sees Profit More Than Double in FY26
CRED-backed NBFC NewTap Finance reported a net profit of ₹2.4 Cr for the fiscal year ended March 31, 2026, more than doubling from the previous year's ₹1 Cr.
NewTap Finance, a non-banking financial company supported by CRED, announced a net profit of ₹2.4 crore for the fiscal year 2026 (FY26), ending March 31. This figure represents a more than doubling of the profit compared to ₹1 crore in the preceding fiscal year. The growth was driven by a significant expansion in the lender's managed loan portfolio.
Total income, excluding interest expenses, rose by 116% to ₹259 crore in FY26 from ₹120 crore in FY25, according to data from CRISIL Ratings. The company's return on assets also improved, reaching 0.25% compared to 0.15% in the previous year.
The NBFC's assets under management (AUM) stood at ₹4,582 crore at the end of FY26. This AUM has experienced a compound annual growth rate (CAGR) of approximately 156% between FY23 and FY26. A significant portion, about 81%, of NewTap's AUM is held off-balance sheet through non-first-loss default guarantee (FLDG) arrangements, with the remaining 19% on its balance sheet. The portfolio is primarily built through a co-lending model involving partnerships with banks and other NBFCs.
NewTap's total assets increased to ₹973 crore in FY26 from ₹887 crore in FY25. Its debt-to-equity ratio improved to 3.1x from 3.96x. CRED has provided equity infusions totaling ₹56.4 crore and subordinated debt of ₹80 crore to NewTap.
Given NewTap's focus on unsecured lending, asset quality remains a key area of focus, CRISIL noted. The proportion of gross Stage 3 assets, which represent credit-impaired loans, increased to 0.94% in FY26 from 0.77% in FY25. Despite this, the NBFC maintained an average collection efficiency of over 97% in the past 12 months, with approximately 90% of its AUM comprising borrowers who have credit scores above 750.