CRED-Backed NewTap Finance’s FY26 Profit More Than Doubles To ₹2.4 Cr

CRED-backed NBFC NewTap Finance reported a net profit of ₹2.4 Cr in the financial year ended March 31, 2026 (FY26), more than doubling from ₹1 Cr in the previous fiscal year, as the lender sharply expanded its managed loan portfolio. 

NewTap’s total income, excluding interest expense, jumped 116% to ₹259 Cr in FY26 from ₹120 Cr in FY25, according to CRISIL Ratings. Its return on assets improved to 0.25% from 0.15% during the period. 

The NBFC’s managed assets under management (AUM) stood at ₹4,582 Cr at the end of FY26, having grown at a CAGR of about 156% between FY23 and FY26, CRISIL said. 

Around 81% of NewTap’s AUM was held off-book under non-first-loss default guarantee (FLDG) arrangements, while the remaining 19% was on its balance sheet. Its portfolio is largely generated through a co-lending-led model involving banks and other NBFCs. 

NewTap’s total assets increased to ₹973 Cr in FY26 from ₹887 Cr in FY25. Meanwhile, its debt-to-equity ratio improved to 3.1X from 3.96X. 

CRED has so far infused ₹56.4 Cr in equity and ₹80 Cr in subordinated debt into NewTap. It has also provided corporate guarantees for all the external debt raised by the NBFC. 

Given NewTap’s focus on unsecured lending, asset quality remains a key monitorable, CRISIL said. The NBFC’s gross Stage 3 assets increased to 0.94% in FY26 from 0.77% in the previous fiscal year. 

Gross Stage 3 assets refer to credit-impaired loans, typically including those where repayments are overdue by more than 90 days. 

However, NewTap’s collection efficiency averaged more than 97% over the past 12 months. Around 90% of its AUM comprised borrowers with credit scores above 750, supporting its asset quality, CRISIL added. 

Incorporated in 2021, NewTap Finance offers short-term personal loans to CRED users. Kunal Shah indirectly owns 74.5% in the NBFC via Newtap Technologies, in which he owns a 100% stake, while 25.2% stake is owned by CRED. 

CRED acts as NewTap’s lending service provider and handles customer acquisition, technology infrastructure, and preliminary customer assessment. NewTap remains responsible for underwriting, pricing, KYC, and regulatory compliance. 

The NBFC currently offers personal loans and loans against mutual funds through digital channels to salaried and self-employed borrowers. It began lending operations in September 2022 and operates across 23 states and four Union Territories. 

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