Lendingkart Finance FY26 net loss widened 16% YoY to ₹333.3 Cr as revenue fell 62% to ₹327.3 Cr due to lower disbursals
Interest income dropped 73% and fee income fell 76%, while lower provisions (₹290 Cr vs ₹523 Cr) couldn’t offset the revenue decline
The NBFC’s performance reflects a prolonged slowdown after FY23 profit, with sharp fall in lending activity and rising stress
Fintech startup Lendingkart’s NBFC arm Lendingkart
Finance continued to remain under financial pressure in the fiscal year FY26 after slipping into loss in the previous fiscal. The Ahmedabad-based NBFC reported a 16% rise in its net loss to ₹333.3 Cr in FY26 from ₹288.3 Cr loss incurred in the previous fiscal year.
Its operating revenue declined 62% to ₹327.3 Cr in FY26 from ₹866.9 Cr in FY25, mainly due to lower loan disbursements. While interest income for the fiscal plunged 73% YoY to ₹227 Cr, fees and commission income fell by 76% to ₹107.6 Cr. The company incurred a loss of ₹19 Cr in Q4 FY26 under the fees and commission income.
During the fiscal, management reviewed direct assignments and co-lending transactions and identified that an ₹34.4 Cr “receivable from co-lenders” on account of interest income as well as ₹22 Cr in “payable towards direct assignment of loans” on account of interest was no more payable was no more receivable in FY26 as well. These were adjusted against “interest income” in Q4 FY26.
Including other income, total income also stood at ₹332.4 Cr in FY26.
It is pertinent to note that Lendingkart Finance had turned profitable in FY23, reporting a net profit of ₹118.8 Cr.
However, the profitability proved short-lived, with earnings declining significantly in FY24 before the NBFC slipped back into the red in FY25, which widened further during the year under review.
The NBFC set aside lower provisions for bad loans in FY26, ₹290 Cr against ₹523.4 Cr in FY25, yet reported higher losses as income fell faster than expenses, widening the net loss.
In Q4 FY26, Lendingkart Finance posted a net loss of ₹122 Cr, up marginally from ₹120.5 Cr in the previous year quarter. Operating revenue for the quarter fell by 70% YoY to ₹45.3 Cr.
Lendingkart Finance’s losses reflect a steady operational decline over the past year.
Founded in 2014 by Harshvardhan Lunia and Mukul Sachan, Lendingkart Technologies built one of India’s early digital MSME lending platforms.
Lendingkart Finance is a wholly owned subsidiary of Lendingkart Technologies, one of India’s early fintech players in the digital MSME lending space. The NBFC holds the lending licence and is the primary vehicle through which the group disburses and books loans on its balance sheet.
At its peak, it was disbursing around ₹340 Cr a month. By August 2024, monthly disbursals had fallen sharply to about ₹17 Cr.
This was followed by a major leadership reshuffle. Founder Harshvardhan Lunia stepped down as managing director of Lendingkart Finance in June 2025 after earlier exiting as CEO of the parent entity. Several senior executives also departed following Fullerton Financial Holdings’ takeover, with former DBS Bank executive Prashant Joshi taking over as CEO.
Tensions later escalated into a legal dispute in November 2025 when Lunia approached the Ahmedabad bench of the NCLT alleging mismanagement under the Fullerton-led management. Reports around the petition cited concerns over slowing disbursals, fundraising decisions, and the acquisition of Upwards Fintech.
The turmoil came amid broader pressure on digital lenders after the RBI tightened risk-weight norms on unsecured lending in late 2023, increasing capital requirements for NBFCs operating in the segment.
In contrast to prior years, Lendingkart Finance’s total expenses fell about 40% to ₹773.1 Cr in FY26 from ₹1,268.3 Cr in FY25.
Impairment loss on financial instruments: This remained the single largest expense head in FY26. Credit loss provisions declined 45% to ₹290.1 Cr from ₹523.5 Cr in FY25.
Finance costs: Borrowing costs fell 39% to ₹185.6 Cr in FY26 from ₹302.6 Cr in FY25, in line with the contraction in the overall loan book and reduced borrowings on the balance sheet.
Employee benefit expenses: Staff costs declined 30% to ₹116 Cr from ₹164.7 Cr in FY25, suggesting layoffs or salary restructuring during the year.
Fees and commission expenses: Expenses under this head fell 23% to ₹76.2 Cr from ₹98.5 Cr in FY25, broadly tracking the decline in loan origination activity.
Source: Inc42 - Startups
