Lendingkart Finance Limited, the non-banking finance company (NBFC) arm of Lendingkart Technologies, reported a net loss of Rs 288.33 crore for the year ended March 2025, compared to a profit of Rs 60.07 crore in FY24, as interest income fell and provisioning surged.
Total income from interest declined nearly 20% year-on-year to Rs 812.31 crore in FY25, down from Rs 1,013.36 crore a year earlier. Fee and commission income also dropped steeply by 57.5% to Rs 32.18 crore.
Meanwhile, impairment charges on financial instruments—a proxy for loan loss provisions— more than doubled to Rs 523.45 crore, up 104.2% from Rs 256.31 crore in FY24.
Asset quality also deteriorated: gross non-performing assets (GNPA) rose to 4.33% in FY25 from 2.90% in FY24, while net NPA (NNPA) increased to 2.37% from 1.95% a year earlier. GNPA is the portion of the book where borrowers have failed to repay interest or principal for 90 days or more, while NNPA reflects the same after accounting for provisions made by the lender.
However, excluding the benefit of sovereign credit guarantee schemes like the Credit Guarantee Fund for Micro Units (CGFMU) and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), the adjusted net NPA would be significantly lower at 1.11%.
Adjusted net NPA refers to the level of net non-performing assets after factoring in the expected recoveries from such credit guarantee schemes.
Finance costs rose 9.9% to Rs 297.79 crore, while employee benefit expenses increased 11.8% to Rs 164.72 crore. Overall expenses surged 18.5% to Rs 1,263.5 crore, further pressuring the bottom line.
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The company is currently in the process of raising fresh capital, with Fullerton Financial Holdings, which is a Temasek-owned entity, set to acquire a majority stake. The deal, subject to regulatory approval, includes an infusion of Rs 252 crore in total, aimed at shoring up the balance sheet and stabilising operations.
Lendingkart’s financials reflect a broader slowdown in lending in the past few quarters, mirroring trends seen across the NBFC and fintech ecosystem. Commercial credit supply by value declined 11% year-over-year in the January–March 2025 quarter, according to a SIDBI report, with private banks seeing the steepest drop (-14%), especially in the Rs 10–Rs 50 crore exposure range for term loans and overdrafts. The report cited heightened credit concerns amid external headwinds as a key reason for the pullback.
Meanwhile, fintech lenders disbursed Rs 25,050 lakh crore in personal loans during Q3 FY25—down 15% from Rs 29,608 lakh crore in the previous quarter—marking the sharpest sequential decline since the COVID-induced crash in Q1 FY21, per a report by the Fintech Association for Consumer Empowerment (FACE). After years of rapid post-pandemic expansion, the sector is now seeing a moderation in growth.
