MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion is intended to convey the managements perspective on our financial condition and results of operations for the three month periods ended June 30, 2026 and 2025 and for Fiscals 2026, 2025 and 2024. Unless otherwise stated, the financial information in this section has been derived from the Restated Consolidated Financial Information.
Our financial year ends on March 31 of each year. Accordingly, references to "Fiscal 2026", "Fiscal 2025" and "Fiscal 2024", are to the 12-month period ended March 31 of the relevant year, references to the "three month period ended June 30, 2026" are to the period between April 1, 2026 and June 30, 2026, and references to the
"three month period ended June 30, 2025" are to April 1, 2025 and June 30, 2025.
Ind AS differs in certain respects from Indian GAAP, IFRS and U.S. GAAP and other accounting principles with which prospective investors may be familiar. Please also see "Risk Factors External Risks 62. Significant differences exist between Ind AS used to prepare our financial information and other accounting principles, such as IFRS and U.S. GAAP, with which investors may be more familiar" on page 75. This discussion contains certain forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, such as the risks set forth in the chapters entitled "Risk Factors" and "Forward-Looking Statements" beginning on pages 25 and 23, respectively.
Unless otherwise indicated, Industry and market data used in this section have been derived from the report titled
Report on Indias Digital Credit Revolution dated September 11, 2026 (the "Redseer Report") prepared and issued by Redseer Strategy Consultants Private Limited ("Redseer"), which has been exclusively commissioned by and paid for by us in relation to the Offer for the purposes of confirming our understanding of the industry in which we operate. The data included herein includes excerpts from the Redseer Report and may have been reordered by us for the purposes of presentation. For further details and risks in relation to the Redseer Report, see
"Risk Factors 49. Certain sections of this Red Herring Prospectus contain information from the Redseer Report which has been exclusively commissioned and paid for by us in relation to the Offer and any reliance on such information for making an investment decision in this Offer is subject to inherent risks" on page 69. The Redseer Report will form part of the material documents for inspection and will be available on the website of our Company at https://moneyview.in/investor-relations/offer-related from the date of filing of this Red Herring Prospectus until the Bid/Offer Closing Date.
Overview
Who We Are
We are a consumer-focused, digital only, credit-led financial services platform for Middle India customers providing access to full suite of financial products through a network of Financial Partners, including our NBFC subsidiary, on our Moneyview mobile application. Our promise to our users is to offer personalized financial products with responsible and transparent terms, delivered via a convenient and user-friendly digital experience.
Notes:
1. "Registered Users" refers to the cumulative number of users who have accessed our website or mobile application through a unique mobile number or email address at least once since inception through the last date of the relevant period/Fiscal.
2. "Monetized Users" refers to the cumulative number of Registered Users who have availed at least one revenue generating product on our platform since inception through the last date of the relevant period/Fiscal.
3. "4.8 stars " refers to the rating of our mobile application on a mobile application store.
4. "Financial Partners" refers to entities that offer their financial products to our users through our platform, including banks, NBFCs (including our NBFC subsidiary), insurance providers and other entities.
5. "Managed AUM" refers to the aggregate value of principal outstanding for the loans serviced through our platform as of June 30, 2026.
6. "Middle India" refers to households with an annual income of 300,000 1,100,000.
7. "Average monthly income" refers to the average monthly income of our Monetized Users as of the last date of the relevant period/Fiscal.
8. "Average Age" refers to the average age of our Monetized Users as of the last date of the relevant period/Fiscal, rounded to the nearest year.
What We Do
We operate as a digital financial services platform to provide a suite of financial products to our users through a network of Financial Partners. Our platform functions as a two-sided network, connecting our users seeking financial products with banks, NBFCs, insurers, and other financial institutions offering such products. As of June 30, 2026, we had 140.28 million Registered Users and 48 Financial Partners integrated into our network. Our platform is built on real-time application programming interfaces, data intelligence capabilities, and in-house technology infrastructure. We maintain deep, real-time technology integrations with our Financial Partners, enabling seamless and scalable digital distribution of financial products across our user base, creating a flywheel effect for the expansion of our two-sided network.
Revenue from operations
We primarily earn revenue from (i) fees and commission income, (ii) interest income, (iii) gain on derecognition of financial assets, and (iv) other operating income.
Fees and commission income
We generate revenue by facilitating loan origination and providing end-to-end servicing, including user acquisition, evaluation, onboarding, collections and servicing. For personal loans facilitated through our platform we earn (i) origination fees for user acquisition and onboarding in the month of origination and (ii) servicing fees for managing the end-to-end user lifecycle over the tenure of the loan.
In Fiscal 2025, we launched new offerings including earned wage access, home loan / loan against property, credit card, general insurance, auto insurance, digital gold, fixed deposit and UPI. These offerings are at a nascent stage, and their revenue contribution was not material in the three month periods ended June 30, 2026 and 2025 and Fiscals 2026 and 2025.
Interest income
For loans outstanding of our NBFC subsidiary ("Portfolio Loans"), we generate revenue through interest income.
Gain on derecognition of financial assets
We generate revenue when we assign Portfolio Loans to third parties. As the substantial risk and rewards related to these loans are transferred to the buyer, we derecognise the loans from our assets and liabilities, and we record gain under "gain on derecognition of financial assets".
Other operating income
We maintain fixed deposits with our Financial Partners, specifically earmarked for default loss guarantees
("DLGs"), and the interest earned on these fixed deposits is recorded as "other operating income interest income on deposits under lien".
Other income
Our other income primarily includes net fair value gain on financial instruments measured at fair value through profit or loss ("FVTPL"), interest income from investment in debt instruments and interest income on fixed deposits free from lien.
Expenses
Our expenses include employee benefits expense, finance costs, depreciation and amortisation expense, impairment of financial instruments and other expenses.
Employee benefits expense
Our employee benefits expense primarily include salaries, wages and bonus and share based payments to employees. It also includes contributions to provident and other funds, gratuity expenses and staff welfare expenses.
Finance costs
Our finance costs primarily comprise interest expense on financial liabilities at amortised cost, consisting mainly of interest on borrowings.
Depreciation and amortisation expense
Depreciation and amortisation expense consists primarily of depreciation on property, plant and equipment and depreciation on right of use asset.
Impairment of financial instruments
Impairment of financial instruments includes impairment loss allowance and write-offs on Portfolio Loans and default loss guarantee expense incurred pursuant to default loss guarantee arrangements with our Financial
Partners ("DLG Partnerships").
Other expenses
Our other expenses primarily comprise marketing and direct sourcing cost, outsource service cost, transaction processing cost, information technology maintenance cost and other expenses.
Principal Factors Affecting our Financial Condition and Results of Operations
The paragraphs below discuss certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations.
General Economic Conditions in India
Our results of operations are affected by the general economic conditions prevailing in India. Overall economic growth and an increase in gross domestic product are likely to result in an increase in consumer income and spending, which may lead to increased demand for loans from us as well as for our other financial products. Conversely, a slowdown in the Indian economy, especially if prolonged, could adversely affect consumers and hence demand for our products. In addition, adverse macroeconomic conditions may increase the credit risk associated with our business, as borrowers may face financial stress and be unable to meet their repayment obligations, leading to higher delinquencies and defaults. For additional information, see "Risk Factors 5. Borrower defaults on loans facilitated through our platform may increase our impairment expense and adversely affect our financial performance" and "Risk Factors 6. Our Gross Stage 3 Loans comprised 2.72%, 2.58%, 2.74%, 1.88% and 0.94% of our Total Gross Loans as at June 30, 2026, June 30, 2025, March 31, 2026, March 31, 2025 and March 31, 2024, respectively. If borrowers default on their repayment obligations, it may lead to increased levels of Gross Stage 3 Loans, and related provisions and write-offs, and if we do not have sufficient provisioning coverage, we may face an adverse impact on our business, financial condition, cash flows, results of operations and prospects" on pages 31 and 33, respectively. Various factors beyond our control, such as domestic employment levels, conditions in the global economy, fluctuations in interest rates, developments in the Indian economy, movements in global commodity markets and exchange rates, and changes in Indian laws, regulations and policies, could have either a positive or adverse impact on the demand for our products and the quality of our loan portfolio. For further details on the industries in which we operate, see "Our Business" and "Industry Overview" beginning on pages 207 and 168, respectively.
Government Policy
Our flagship product, Personal Loans is provided in partnership with regulated entities, including our NBFC subsidiary. Any change in RBI regulation will have either a positive or negative impact on our business. Also, our Material Subsidiary is an RBI regulated entity which will continue to be affected by regulations promulgated by the RBI that regulates interest rate, liquidity, capital adequacy norms, DLG, etc. For instance, WFPL is subject to the RBIs guidelines on financial regulation of NBFCs. Any change in the regulatory framework would severely affect our results of operations and growth.
For additional information, see "Risk Factors 9. We are subject to a stringent regulatory framework that may affect the flexibility of our operations and increase compliance costs and any regulatory action against us and our employees may result in penalties and/or sanctions that could have an adverse effect on our business, prospects, financial condition and results of operations" and " Risk Factors 13. Our Material Subsidiary,
WFPLs failure to comply with the capital adequacy ratios prescribed by the Reserve Bank of India could adversely affect our business, results of operations, cash flows and financial condition" on pages 36 and 40, respectively.
Technological Capabilities
We operate a digital-only platform for delivering our suite of financial products, enabling us to reach consumers across India without the need for physical infrastructure. The entire user journey on our app from origination to servicing is paperless and conducted digitally. This allows us to offer a fully unassisted, seamless user journey, ensuring accessibility, scalability, and cost efficiency. As of June 30, 2026, our platform served users across 99.04% of PIN codes in India and recorded 15.69 million monthly transactions.
Our platform embeds AI/ML capabilities across the user lifecycle from onboarding to collections. Our credit underwriting models utilize diverse data sources and leverage machine learning techniques to assess risk and segment users. Our proprietary AI/ML models, trained on over 100,000 data variables, continuously evolve with our growing dataset and allow us to segment users with greater granularity than credit bureaus. We leverage AI for providing tailor made financial solutions to individual users. ML-driven tools enhance productivity by automating decision-making, and optimizing resource allocation across operations and collections.
Our technology systems enable us to capitalize on economies of scale, thereby enhancing productivity, reducing turnaround times, and drive operating efficiencies. Our ability to grow our user base, improve user experience and increase revenues depends, in part, on our ability to leverage technology. We plan to continue investing in technology and digitization to ensure that our information technology systems support key functions, including loan origination, credit underwriting, risk management, collections, user service and retention. We believe that such investments will help improve recoveries and reduce our Operating Expenses (the aggregate of Total expenses, reduced by Finance costs, Impairment of financial instruments, Depreciation and amortization expense and Share based payments to employees, for the relevant period/Fiscal), cost of user acquisition and credit costs over time. Our ability to scale operations faster while improving cost efficiencies will be driven by the effective utilization of these technological capabilities. Our user acquisition costs will also be determined by our ability to generate cross-sell and up-sell opportunities through our platform.
Ability to Attract and Retain Users
Our growth depends on our ability to attract new users to our platform, retain existing users and cultivate loyalty through cross-selling, repeat loans and service renewal. Our Registered Users increased from 83.27 million as of March 31, 2024 to 109.59 million as of March 31, 2025 and to 134.14 million as of March 31, 2026, representing a CAGR of 26.92%, and increased to 140.28 million as of June 30, 2026.
The following table shows our Registered Users, Monetized Users and Monetized Users as a percentage of Registered Users as of the dates indicated.
As of June 30, |
As of March 31, | ||||
Particulars |
2026 | 2025 | 2026 | 2025 | 2024 |
| Registered Users(1) (millions) | 140.28 | 114.38 | 134.14 | 109.59 | 83.27 |
| Monetized Users(2) (millions) | 11.90 | 8.14 | 10.75 | 7.45 | 4.62 |
| Monetized Users as a percentage | 8.48% | 7.12% | 8.01% | 6.79% | 5.55% |
| of Registered Users (%)(3) | |||||
Notes:
(1) Registered Users refers to the cumulative number of users who have accessed our website or mobile application through a unique mobile number or email address at least once since inception through the last date of the relevant period/Fiscal.
(2) Monetized Users refers to the cumulative number of Registered Users who have availed at least one revenue generating product on our platform since inception through the last date of the relevant period/Fiscal.
(3) Monetized Users as a percentage of Registered Users is calculated as Monetized Users divided by Registered Users.
Our credit-led offerings enable us to build user stickiness, and our focus on personalization helps build trust and long-term relationships with our users. Our users continued engagement with our platform presents opportunities to introduce them to new products and services. Lending serves as a powerful entry point into a users financial journey, offering us rich contextual data, such as credit scores, income patterns, and repayment behaviour, that we can use to tailor and cross-sell relevant products. Since August 2024, we have expanded our offerings to include credit cards, earned wage access, home loans, loans against property, insurance, digital gold, UPI, and bill payments.
In addition, as more users carry utilize the services on our app, more Financial Partners are attracted to our platform, thereby increasing our transaction volume and user engagement. This self-reinforcing flywheel will enable us to expand our user and financial partner network and enhance the product offerings on our platform.
Relationships with and Number of Financial Partners
We believe our long-term revenue growth depends on our ability to retain existing and acquire new Financial Partners on our platform, including lending, insurance, banking and other partners. As we expand our partner network, we can offer a broader range of products to our users, which increases our fees and commission income.
For additional information about our Financial Partners, see "Our Business Our Competitive Strengths Capital-light model with a diversified network of capital partners" on page 208 and "Risk Factors 2. We depend on cooperation with our Financial Partners. In the three month periods ended June 30, 2026 and 2025, and Fiscals 2026, 2025 and 2024, our top ten Financial Partners contributed to 39.02%, 38.69%, 37.36%, 46.82% and 56.78% of our revenue from operations, respectively. Our business may be negatively affected if our Financial Partners do not continue their relationship with us, which could have an adverse impact on our business, financial condition, cash flows, results of operations and prospects" on page 27.
One of the key drivers of our revenue is the number and value of loans we distribute through our platform and the associated fees and commission income we earn on such loans. Revenue from our financial partners are dependent upon our service quality, customer acquisition, liquidity and the interest rate environment. We attract and retain financial partners by providing a platform that enables them to expand their reach through digital distribution channels, accessing our large, diversified user base. We collaborate with partners to co-create tailored digital-first financial products that enhance relevance and adoption. Our end-to-end digital platform streamlines user acquisition, onboarding, servicing, and collections, reducing turnaround times and operational costs.
The number of our Financial Partners increased from 19 in Fiscal 2024 to 32 in Fiscal 2025, to 43 in Fiscal 2026 and to 48 in the three month period ended June 30, 2026 which supported the expansion and diversification of our business operations. The table below sets forth the number of Financial Partners on our Platform for the periods/Fiscals indicated:
Three month period ended June |
|||||
Fiscal |
|||||
Particulars |
30, |
||||
2026 |
2025 | 2026 |
2025 |
2024 |
|
Total number of Financial |
48 | 35 | 43 | 32 | 19 |
Partners |
|||||
| Personal Loan Product Partners(1) | 22 | 18 | 22 | 18 | 18 |
| Other Product Partners(2) | 26 | 17 | 21 | 14 | 1 |
Notes:
1. Personal Loan Product Partners are Financial Partners who underwrite and disburse personal loans to users on our platform. 2. Other Product Partners are Financial Partners who offer financial products other than personal loans to users on our platform.
In the three month periods ended June 30, 2026 and 2025 and Fiscals 2026, 2025 and 2024, we have added new Financial Partners and none of our top 10 Financial Partners have terminated their arrangements with us. Further, while our arrangements with Financial Partners contain termination clauses, such arrangements do not prescribe any fixed contractual tenure.
The expansion of our Financial Partner network has been a strategic initiative aimed at diversifying our revenue base and expanding product offerings. As a result of the increase in the number of Financial Partners, the contribution of our top 10 Financial Partners to revenue from operations decreased from 56.78% in Fiscal 2024 to 46.82% in Fiscal 2025 and 37.36% in Fiscal 2026. The contribution of our top 10 Financial Partners to revenue from operations remained stable at 38.69% in the three month period ended June 30, 2025 and 39.02% in the three month period ended June 30, 2026. Going forward, we intend to continue expanding and diversifying our Financial Partner ecosystem by onboarding partners that align with our strategy of broadening product offerings, enhancing market reach, and driving innovation. A diversified partner network enables us to offer a wider range of financial products across credit, insurance, payments, and other categories, while reducing concentration risk and enhancing the resilience of our business model. For further details, see "Our Business Our Growth Strategies Deepening Financial Partner Ecosystem for Product and Market Expansion" on page 230 of this Red Herring Prospectus.
Our ability to continue to improve our platform in ways that benefit our Financial Partners will be a key driver of our results of operations.
Access to Diversified Sources of Capital
We maintain a diversified funding profile, supported by WFPLs credit rating of IND A- /(Stable) as of June 30, 2026, which was revised to A- /(Positive) pursuant to the rating letter dated August 11, 2026 issued by India Ratings and Research Private Limited, and a robust liquidity management framework. Our financing requirements have historically been met through a mix of banks, NBFCs, alternative investment funds ("AIFs"), and other financial institutions.
As of June 30, 2026, we had borrowing relationships with 50 debt partners, including 17 banks along with over 100 debt security-holders, enabling us to manage funding risks, optimize borrowing costs, and maintain operational flexibility. We access funds through various instruments, including term loans, commercial paper, and non-convertible debentures, and have increasingly leveraged securitization structures such as direct assignments and pass-through certificates ("PTCs") since Fiscal 2024. This multi-instrument approach supports effective capital management and asset-liability alignment, while allowing us to optimize our overall cost of funding. Our ability to grow our lending operations and maintain competitive pricing will continue to depend on our access to diversified, cost-effective sources of funding.
The table below sets forth the composition of our borrowings for the periods/Fiscals indicated:
(in million, except percentages)
As of and for the three month period ended |
As of and for the financial year ended March 31, |
|||||||||
June 30, |
||||||||||
2026 |
2025 | 2026 |
2025 | 2024 | ||||||
Particulars |
% of total | % of total | % of total | % of total | % of total | |||||
| Amount | borrowings | Amount | borrowings | Amount | borrowings | Amount | borrowings | Amount | borrowings | |
Debt Securities |
||||||||||
| Non-convertible | 34,291.18 | 62.52% | 23,972.58 | 58.90% | 33,721.96 | 65.39% | 18,898.24 | 55.37% | 6,469.45 | 37.86% |
| debentures | ||||||||||
| (secured) | ||||||||||
| Commercial | 2,000.00 | 3.65% | 250.00 | 0.61% | 570.00 | 1.11% | 350.00 | 1.03% | 250.00 | 1.46% |
| papers | ||||||||||
| (unsecured) | ||||||||||
Debt Securities |
36,291.18 | 66.17% | 24,222.58 | 59.51% | 34,291.96 | 66.50% | 19,248.24 | 56.40% | 6,719.45 | 39.32% |
(A) |
||||||||||
Borrowings |
||||||||||
(other than |
||||||||||
debt securities) |
||||||||||
(secured) |
||||||||||
| Term loans: | ||||||||||
| From Banks | 8,469.34 | 15.44% | 5,428.58 | 13.34% | 8,435.62 | 16.36% | 4,041.11 | 11.84% | 3,256.90 | 19.06% |
| From Financial | 4,273.77 | 7.79% | 3,814.88 | 9.37% | 3,429.59 | 6.65% | 4,411.01 | 12.92% | 7,020.55 | 41.08% |
| Institutions | ||||||||||
| Liabilities | 6,849.34 | 12.49% | 8,006.24 | 19.67% | 6,578.92 | 12.76% | 6,886.78 | 20.18% | 257.37 | 1.51% |
| against | ||||||||||
| securitized asset | ||||||||||
Borrowings |
19,592.45 | 35.72% | 17,249.70 | 42.38% | 18,444.13 | 35.76% | 15,338.90 | 44.94% | 10,534.82 | 61.65% |
(other than |
||||||||||
debt securities) |
||||||||||
(B) |
||||||||||
| Impact of | (1,036.05) | (1.89%) | (770.89) | (1.89%) | (1,165.71) | (2.26%) | (453.47) | (1.34%) | (165.09) | (0.97%) |
| effective | ||||||||||
| interest rate | ||||||||||
| ("EIR") (C) | ||||||||||
Total |
54,847.58 | 100.00% | 40,701.39 | 100.00% | 51,570.38 | 100.00% | 34,133.67 | 100.00% | 17,089.18 | 100.00% |
Borrowings |
||||||||||
(A+B+C) |
||||||||||
Finance Costs Average cost of borrowings(1) |
1,881.27 | 1,335.19 | 6,316.90 | 3,698.21 | 1,255.38 | |||||
| (%) | 14.14%* | 14.27%* | 14.74% | 14.44% | 12.71% | |||||
Notes:
(1) Average cost of borrowings represents the Total finance cost during the period/Fiscal divided by average borrowing outstanding during the period/Fiscal. *The average cost of borrowing for the three month periods ended June 30, 2026 and 2025 have been calculated and presented on an annualised basis to facilitate comparability with full-year periods.
The composition of our borrowings has shifted as we have diversified our funding profile across instruments and counterparties to support the scale-up of our lending operations, optimize borrowing costs, and enhance liquidity management. Debt securities as a percentage of total borrowings increased from 39.32% as of March 31, 2024 to 66.17% as of June 30, 2026, primarily driven by increased issuances of secured non-convertible debentures and improved access to debt capital markets. Term loans from banks increased from 3,256.90 million as of March 31, 2024 to 8,469.34 million as of June 30, 2026, reflecting the expansion of our banking relationships as our business grew.
Further, liabilities against securitized assets increased from 1.51% as of March 31, 2024 to 12.49% as of June 30, 2026, driven by the increase in funding through securitization of portfolio loans.
Correspondingly, term loans from financial institutions as a percentage of total borrowings decreased from 41.08% as of March 31, 2024 to 7.79% as of June 30, 2026, reflecting the diversification of our borrowing sources and reduced dependence on a single category of lenders. None of our existing lenders have discontinued their relationship with us or materially reduced sanctioned facilities due to asset quality or business performance concerns during the three month periods ended June 30, 2026 and 2025 and Fiscals 2026, 2025 and 2024.
Our Material Subsidiary, WFPL, raises borrowings primarily for onward lending and to support growth of its Portfolio Loans. We actively monitor our asset-liability management position to maintain adequate liquidity and manage maturity mismatches across our borrowing profile and loan portfolio. The table below sets forth the breakdown of our assets and liabilities maturity pattern of our Material Subsidiary, WFPL, indicating our asset-liability gap as of June 30, 2026:
Particulars |
1 days to 30/31 (1 month) | Over 1 month to 2 months | Over 2 months to 3 months | Over 3 months to 6 months | Over 6 months to 1 year | Over 1 to 3 years | Over 3 to 5 years | Over 5 years | Total |
| (in million) | |||||||||
| Assets | |||||||||
| Portfolio | 6,005.04 | 5,304.83 | 4,858.06 | 11,666.87 | 14,469.94 | 10,970.12 | 517.14 | - | 53,792.00 |
| Loans | |||||||||
| Liabilities | |||||||||
| Borrowings | 2,631.94 | 7,116.00 | 3,447.53 | 8,879.42 | 9,937.46 | 19,661.39 | 933.69 | - | 52,607.43 |
| Cumulative | 3,373.10 | 1,561.93 | 2,972.46 | 5,759.91 | 10,292.39 | 1,601.12 | 1,184.57 | 1,184.57 | 1,184.57 |
| Mismatch |
Expense Management, Cost and Profitability
Our profitability and financial performance depend on our ability to effectively manage and control our expenses while scaling our business operations, in particular our employee benefits expense, finance cost, impairment of financial instruments and other expenses primarily comprising marketing and direct sourcing cost and outsource service cost.
The table below sets out details in relation to certain of our expenses as a percentage of total income for the periods/Fiscals indicated.
Three month period ended June 30, |
Fiscal |
|||||||||
| 2026 | 2025 |
2026 |
2025 |
2024 |
||||||
Particulars |
as a % |
as a % of |
as a % of |
as a % of |
as a % of |
|||||
million |
of total |
million |
total |
million |
total |
million |
total |
million |
total |
|
income |
income |
income |
income |
income |
||||||
| Employee | 933.76 | 8.77% | 611.87 | 8.70% | 2,819.36 | 8.28% | 2,224.56 | 9.35% | 1,570.52 | 11.30% |
| benefits | ||||||||||
| expense | ||||||||||
| Finance costs | 1,881.27 | 17.66% | 1,335.19 | 19.00% | 6,316.90 | 18.56% | 3,698.21 | 15.55% | 1,255.38 | 9.04% |
| Impairment of | 2,614.03 | 24.54% | 2,004.30 | 28.51% | 9,835.28 | 28.89% | 6,677.30 | 28.07% | 2,527.17 | 18.19% |
| financial | ||||||||||
| instruments | ||||||||||
| Marketing and | 1,220.90 | 11.46% | 1,073.45 | 15.27% | 4,391.09 | 12.90% | 4,265.64 | 17.93% | 4,242.84 | 30.54% |
| direct sourcing | ||||||||||
| cost | ||||||||||
Total income |
10,650.92 | 100.00% | 7,029.16 | 100.00% | 34,042.74 | 100.00% | 23,785.29 | 100.00% | 13,892.41 | 100.00% |
Finance costs as a percentage of total income increased from Fiscal 2024 to Fiscal 2026 primarily due to the increase in borrowings undertaken to support the growth in our Portfolio Loans. Finance costs as a percentage of total income decreased from 19.00% for the three month period ended June 30, 2025 to 17.66% for the three month period ended June 30, 2026 due to the diversification of our sources of capital. We intend to further diversify our funding profile by expanding our lender base, increasing access to lower-cost funding instruments and improving funding efficiency. For further details, see the sections "Our Business Our Growth Strategies
Reduce Cost of Capital and Strengthen Funding Efficiency" on pages 233 of this Red Herring Prospectus.
Further, impairment of financial instruments as a percentage of total income increased from Fiscal 2024 to Fiscal 2026 primarily due to the growth in our Portfolio Loans, resulting in higher impairment loss allowance and write-offs, as well as the recognition of default loss guarantee expenses. Impairment of financial instruments as a percentage of total income decreased from 28.51% for the three month period ended June 30, 2025 to 24.54% for the three month period ended June 30, 2026 due to improving asset quality. We intend to further improve asset quality and reduce credit costs through enhancements to our underwriting, risk assessment and collection capabilities, supported by our proprietary data assets and AI/ML-driven models. For further details, see the sections "Our Business Our Growth Strategies Drive income growth and Cost efficiency to further enhance profitability and return on equity - Strengthen Credit Quality Through Better Data and Risk Models" on page
232 of this Red Herring Prospectus.
Our Operating Expenses include employee benefit expenses, marketing and direct sourcing cost, outsource service cost, transaction processing cost, information technology maintenance cost and other expenses. Operating Expense as a percentage to total income decreased from 56.42% in Fiscal 2024 to 41.43% in Fiscal 2025 to 34.84% in Fiscal 2026. Operating Expense as a percentage to total income was 34.14% and 38.62% for the three month periods ended June 30, 2026 and 2025, respectively. See " Non-GAAP Financial Measures Reconciliation of Operating Expenses and Operating Expenses / Total Income" on page 401 for a reconciliation of Operating Expenses.
We have integrated technology into every facet of our business to enhance operational efficiency and reduce costs. Our technology investments enable us to automate processes including user onboarding, credit assessment, loan fulfilment, user service, and collections, which helps reduce our expenses and enhances overall productivity. We intend to further leverage AI to drive operating efficiency and reduce cost. For instance, we have deployed AI-powered chatbots to handle a significant share of user queries, enabling faster resolution and reducing reliance on manual intervention. For further details, see "Our Business Our Growth Strategies" on page 228. Our ability to continue to leverage technology to manage our costs will be key to our profitability.
Principal Components of Results of Operations
Results of Operations
The following table sets forth select financial data for the periods/Fiscals indicated, the components of which are also expressed as a percentage of total income for such periods/Fiscals.
Three month period ended June 30, |
Fiscal |
|||||||||
2026 |
2025 |
2026 |
2025 |
2024 |
||||||
Particulars |
million |
as a % of total income |
million |
as a % of total income |
million |
as a % of total income |
million |
as a % of total income |
million |
as a % of total income |
Income |
||||||||||
| Revenue from operations | ||||||||||
| Fees and commission income | 6,328.65 | 59.42% | 3,917.61 | 55.73% | 18,994.55 | 55.80% | 14,867.98 | 62.51% | 10,153.77 | 73.09% |
| Interest income | 3,871.66 | 36.35% | 2,829.16 | 40.25% | 13,127.00 | 38.56% | 7,890.46 | 33.17% | 3,008.33 | 21.65% |
| Gain on derecognition of | 97.99 | 0.92% | 81.25 | 1.16% | 970.24 | 2.85% | 285.48 | 1.20% | 57.46 | 0.41% |
| financial assets | ||||||||||
| Other operating income | 112.83 | 1.06% | 102.44 | 1.46% | 419.79 | 1.23% | 347.54 | 1.46% | 204.14 | 1.47% |
Total revenue from |
10,411.13 | 97.75% | 6,930.46 | 98.60% | 33,511.58 | 98.44% | 23,391.46 | 98.34% | 13,423.70 | 96.63% |
operations (a) |
||||||||||
| Other income (b) | 239.79 | 2.25% | 98.70 | 1.40% | 531.16 | 1.56% | 393.83 | 1.66% | 468.71 | 3.37% |
Total income (I= a+b) |
10,650.92 | 100.00% | 7,029.16 | 100.00% | 34,042.74 | 100.00% | 23,785.29 | 100.00% | 13,892.41 | 100.00% |
Expenses |
||||||||||
| Employee benefits expense | 933.76 | 8.77% | 611.87 | 8.70% | 2,819.36 | 8.28% | 2,224.56 | 9.35% | 1,570.52 | 11.30% |
| Finance costs | 1,881.27 | 17.66% | 1,335.19 | 19.00% | 6,316.90 | 18.56% | 3,698.21 | 15.55% | 1,255.38 | 9.04% |
| Depreciation and amortisation | 31.74 | 0.30% | 23.11 | 0.33% | 98.79 | 0.29% | 89.51 | 0.38% | 48.60 | 0.35% |
| expense | ||||||||||
| Impairment of financial | 2,614.03 | 24.54% | 2,004.30 | 28.51% | 9,835.28 | 28.89% | 6,677.30 | 28.07% | 2,527.17 | 18.19% |
| instruments | ||||||||||
| Other expenses | 2,862.63 | 26.88% | 2,157.42 | 30.69% | 9,632.34 | 28.29% | 7,903.60 | 33.23% | 6,507.71 | 46.84% |
Total expenses (II) |
8,323.43 | 78.15% | 6,131.89 | 87.24% | 28,702.67 | 84.31% | 20,593.18 | 86.58% | 11,909.38 | 85.73% |
Restated profit before |
2,327.49 | 21.85% | 897.27 | 12.76% | 5,340.07 | 15.69% | 3,192.11 | 13.42% | 1,983.03 | 14.27% |
exceptional items and tax(III) |
||||||||||
= (I-II) |
||||||||||
| Exceptional items, (gain)/loss | (2.32) | (0.02%) | - | - | 2,066.53 | 6.07% | - | - | - | - |
| (IV) | ||||||||||
Restated profit before tax(V) |
2,329.81 | 21.87% | 897.27 | 12.76% | 3,273.54 | 9.62% | 3,192.11 | 13.42% | 1,983.03 | 14.27% |
= (III-IV) |
||||||||||
Tax expense/(credit) |
||||||||||
Other than exceptional items |
||||||||||
| Current tax expense | 729.82 | 6.85% | 300.26 | 4.27% | 1,423.49 | 4.18% | 866.79 | 3.64% | 461.54 | 3.32% |
| Deferred tax credit | (138.55) | (1.30%) | (74.51) | (1.06%) | (56.86) | (0.17%) | (77.43) | (0.33%) | (189.98) | (1.37%) |
Exceptional items |
||||||||||
| Current tax expense/ (credit) | 0.58 | 0.01% | - | - | (520.14) | (1.53%) | - | - | - | - |
| (VI) | ||||||||||
| Deferred tax expense/ (credit) | - | - | - | - | - | - | - | - | - | - |
Total tax expense (VII) |
591.85 | 5.56% | 225.75 | 3.21% | 846.49 | 2.49% | 789.36 | 3.32% | 271.56 | 1.95% |
| Restated Profit for the period / | 1,737.96 | 16.32% | 671.52 | 9.55% | 2,427.05 | 7.13% | 2,402.75 | 10.10% | 1,711.47 | 12.32% |
| year (VIII ) = (V-VII) | ||||||||||
Restated profit for the period |
1,736.22 | 16.30% | 671.52 | 9.55% | 3,973.44 | 11.67% | 2,402.75 | 10.10% | 1,711.47 | 12.32% |
/ year before exceptional |
||||||||||
items (net of tax) (IX) = |
||||||||||
(VIII+IV+VI) |
||||||||||
Three month period ended June 30, 2026 compared to three month period ended June 30, 2025
Income
Our total income increased by 51.52% to 10,650.92 million in the three month period ended June 30, 2026 from 7,029.16 million in the three month period ended June 30, 2025, primarily due to an increase in our total revenue from operations.
Total revenue from operations
Our total revenue from operations increased by 50.22% to 10,411.13 million in the three month period ended June 30, 2026 from 6,930.46 million in the three month period ended June 30, 2025 due to an increase in fees and commission income, interest income, gain on derecognition of financial assets and other operating income.
Fees and commission income
Our fees and commission income increased by 61.54% to 6,328.65 million in the three month period ended June 30, 2026 from 3,917.61 million in the three month period ended June 30, 2025, primarily due to an increase in our Loan Disbursals to 71,519.55 million in the three month period ended June 30, 2026 from 50,992.90 million in the three month period ended June 30, 2025 and an increase in Managed AUM to 225,201.65 million as of June 30, 2026 from 177,078.39 million as of June 30, 2025.
Interest income
Our interest income increased by 36.85% to 3,871.66 million in the three month period ended June 30, 2026 from 2,829.16 million in the three month period ended June 30, 2025, primarily due to the growth of Average Gross Loans by 32.37% to 56,143.80 million in the three month period ended June 30, 2026 from 42,413.20 million for the three month period ended June 30, 2025.
Gain on derecognition of financial assets
Our gain on derecognition of financial assets increased by 20.60% to 97.99 million in the three month period ended June 30, 2026 compared to 81.25 million in the three month period ended June 30, 2025, as a result of the direct assignment of our Portfolio Loans.
Other operating income
Our other operating income increased by 10.14% to 112.83 million in the three month period ended June 30, 2026 from 102.44 million in the three month period ended June 30, 2025, primarily due to interest income on deposits under lien.
Other income
Our other income increased by 142.95% to 239.79 million in the three month period ended June 30, 2026 from 98.70 million in the three month period ended June 30, 2025, primarily due to an increase in interest income from investment in debt instruments to 81.30 million in the three month period ended June 30, 2026 from nil in the three month period ended June 30, 2025, and an increase in net fair value gain on financial instruments measured at FVTPL by 82.64% to 125.91 million in the three month period ended June 30, 2026 from 68.94 million in the three month period ended June 30, 2025.
Expenses
Our total expenses increased by 35.74% to 8,323.43 million in the three month period ended June 30, 2026 from 6,131.89 million in the three month period ended June 30, 2025, primarily due to an increase in employee benefits expense, finance costs, impairment of financial instruments and other expenses.
Employee benefits expense
Our employee benefits expense increased by 52.61% to 933.76 million in the three month period ended June 30, 2026 from 611.87 million in the three month period ended June 30, 2025, primarily due to an increase in salaries, wages and bonus by 36.93% to 706.51 million in the three month period ended June 30, 2026 from 515.95 million in the three month period ended June 30, 2025 and an increase in share-based payments to employees by
191.92% to 160.15 million in the three month period ended June 30, 2026 from 54.86 million in the three month period ended June 30, 2025. Both increases were primarily due to an increase in our employee headcount and annual salary increments. Our full-time employee headcount increased to 798 employees as of June 30, 2026 from 669 employees as of June 30, 2025.
Finance costs
Our finance costs increased by 40.90% to 1,881.27 million in the three month period ended June 30, 2026 from 1,335.19 million in the three month period ended June 30, 2025, primarily due to an increase in interest on borrowings by 40.77% to 1,868.57 million in the three month period ended June 30, 2026 from 1,327.35 million in the three month period ended June 30, 2025. This was primarily attributable to an increase in the average of current and non-current borrowings at the beginning and end of the period ("Average Total Borrowings") by 42.20% to 53,208.98 million for the three month period ended June 30, 2026 from 37,417.53 million for the three month period ended June 30, 2025, mainly to fund the growth of our NBFCs Portfolio Loans.
Depreciation and amortisation expense
Our depreciation and amortisation expense increased by 37.34% to 31.74 million in the three month period ended June 30, 2026 from 23.11 million in the three month period ended June 30, 2025, due to increases in depreciation on property, plant, and equipment, right-of-use assets and amortisation on intangible assets.
Impairment of financial instruments
Our impairment of financial instruments measured at amortised cost increased by 30.42% to 2,614.03 million in the three month period ended June 30, 2026 from 2,004.30 million in the three month period ended June 30,
2025, primarily due to:
? An increase in our impairment loss allowance on Portfolio Loans and write-offs net of recoveries by
35.66% to 1,601.00 million in the three month period ended June 30, 2026 from 1,180.14 million in the three month period ended June 30, 2025, which was primarily attributable to the growth in our
Average Gross Loans by 32.37% to 56,143.80 million for the three month period ended June 30, 2026 from 42,413.20 million for the three month period ended June 30, 2025.
? An increase in our Default loss guarantee expense by 22.92% to 1,013.03 million in the three month period ended June 30, 2026 from 824.16 million in the three month period ended June 30, 2025, which was primarily attributable to the increase in DLG Disbursals to 48,346.94 million in the three month period ended June 30, 2026 from 26,278.35 million in the three month period ended June 30, 2025.
Other expenses
The largest component of other expenses was marketing and direct sourcing cost, which increased by 13.74% to
1,220.90 million in the three month period ended June 30, 2026 from 1,073.45 million in the three month period ended June 30, 2025. Our marketing and direct sourcing costs as a percentage of Loan Disbursals declined from 2.11% in the three month period ended June 30, 2025 to 1.71% in the three month period ended June 30, 2026, supported by optimized performance marketing, and embedded partnerships with digital platforms.
Our other expenses increased by 32.69% to 2,862.63 million in the three month period ended June 30, 2026 from 2,157.42 million in the three month period ended June 30, 2025, primarily due to:
? an increase in outsource service cost by 33.18% to 822.66 million in the three month period ended June 30, 2026 from 617.69 million in the three month period ended June 30, 2025, which was driven by the growth in Managed AUM;
? an increase in transaction processing cost by 41.79% to 124.83 million in the three month period ended June 30, 2026 from 88.04 million in the three month period ended June 30, 2025, which was driven by the growth in Managed AUM; and
? an increase in information technology maintenance cost by 141.40% to 381.89 million in the three month period ended June 30, 2026 from 158.20 million in the three month period ended June 30, 2025 primarily due to our increased business activities.
Restated profit before exceptional items and tax
As a result of the foregoing, our restated profit before exceptional items and tax increased by 159.40% to 2,327.49 million in the three month period ended June 30, 2026 from 897.27 million in the three month period ended June
30, 2025.
Exceptional items, (gain)
During the three month period ended June 30, 2026, we recognized exceptional items, (gain) of 2.32 million relating to the partial recovery of losses arising from the cyber incident that occurred in August 2025 for which an exceptional loss was recognized in Fiscal 2026. There were no exceptional items during the three month period ended June 30, 2025.
Restated profit before tax
As a result of the foregoing, our restated profit before tax increased by 159.66% to 2,329.81 million in the three month period ended June 30, 2026 from 897.27 million in the three month period ended June 30, 2025.
Total tax expense
Our total tax expense was 591.85 million in the three month period ended June 30, 2026 compared to 225.75 million in the three month period ended June 30, 2025. The effective tax rate for the three month period ended June 30, 2026 was 25.40% compared to 25.16% for the three month period ended June 30, 2025.
Restated profit for the period
As a result of the foregoing, our restated profit for the period increased by 158.81% to 1,737.96 million in the three month period ended June 30, 2026 from 671.52 million in the three month period ended June 30, 2025.
Restated profit for the period before exceptional items (net of tax) as a percentage of total income
Our restated profit for the period before exceptional items (net of tax) as a percentage of total income increased to 16.30% in the three month period ended June 30, 2026 from 9.55% in the three month period ended June 30, 2025, primarily due to operating leverage as revenue from operations continued to scale while operating expenses grew at a slower rate, as described above, demonstrating the resilience of our business model.
Fiscal 2026 compared to Fiscal 2025
Income
Our total income increased by 43.13% to 34,042.74 million in Fiscal 2026 from 23,785.29 million in Fiscal
2025, primarily due to an increase in our total revenue from operations.
Total revenue from operations
Our total revenue from operations increased by 43.26% to 33,511.58 million for Fiscal 2026 from 23,391.46 million for Fiscal 2025 due to an increase in fees and commission income, interest income, gain on derecognition of financial assets and other operating income.
Fees and commission income
Our fees and commission income increased by 27.75% to 18,994.55 million for Fiscal 2026 from 14,867.98 million for Fiscal 2025, primarily due to an increase in our Loan Disbursals to 230,985.19 million in Fiscal 2026 from 176,211.18 million in Fiscal 2025 and an increase in Managed AUM to 213,801.37 million as of March 31, 2026 from 167,151.41 million as of March 31, 2025.
Interest income
Our interest income increased by 66.37% to 13,127.00 million for Fiscal 2026 from 7,890.46 million for Fiscal 2025, primarily due to the growth of Average Gross Loans by 59.19% to 47,521.39 million for Fiscal 2026 from 29,852.06 million for Fiscal 2025.
Gain on derecognition of financial assets
Our gain on derecognition of financial assets was 970.24 million for Fiscal 2026 compared to 285.48 million for Fiscal 2025, as a result of direct assignment of our Portfolio Loans.
Other operating income
Our other operating income increased by 20.79% to 419.79 million for Fiscal 2026 from 347.54 million for
Fiscal 2025, primarily due to interest income on deposits under lien.
Other income
Our other income increased by 34.87% to 531.16 million in Fiscal 2026 from 393.83 million in Fiscal 2025, primarily due to an increase in interest income on fixed deposits free from lien by 25.08% to 103.88 million in Fiscal 2026 from 83.05 million in Fiscal 2025 and interest income from investment in debt instruments of
113.13 million in Fiscal 2026, compared to nil in Fiscal 2025.
Expenses
Our total expenses increased by 39.38% to 28,702.67 million in Fiscal 2026 from 20,593.18 million in Fiscal
2025, primarily due to an increase in employee benefits expense, finance costs and impairment of financial instruments.
Employee benefits expense
Our employee benefits expense increased by 26.74% to 2,819.36 million in Fiscal 2026 from 2,224.56 million in Fiscal 2025, primarily due to an increase in salaries, wages and bonus by 12.43% to 2,084.02 million in Fiscal 2026 from 1,853.65 million in Fiscal 2025 and an increase in share-based payments to employees by 115.30% to 591.24 million in Fiscal 2026 from 274.61 million in Fiscal 2025. Both increases were primarily due to an increase in our employee headcount and annual salary increments. Our full-time employee headcount increased to 725 employees as of March 31, 2026 from 667 employees as of March 31, 2025, primarily attributable to the growth of our business.
Finance costs
Our finance costs increased by 70.81% to 6,316.90 million in Fiscal 2026 from 3,698.21 million in Fiscal 2025, primarily due to an increase in interest on borrowings by 72.89% to 6,283.97 million in Fiscal 2026 from 3,634.60 million in Fiscal 2025. This was primarily attributable to an increase in Average Total Borrowings by
67.32% to 42,852.03 million for Fiscal 2026 from 25,611.43 million for Fiscal 2025, mainly to fund the growth of our NBFCs Portfolio Loans.
Depreciation and amortisation expense
Our depreciation and amortisation expense increased by 10.37% to 98.79 million in Fiscal 2026 from 89.51 million in Fiscal 2025, due to increases in depreciation on property, plant, and equipment, depreciation on right of use assets and amortisation on intangible assets.
Impairment of financial instruments
Our impairment of financial instruments measured at amortised cost increased by 47.29% to 9,835.28 million in Fiscal 2026 from 6,677.30 million in Fiscal 2025, primarily due to:
? An increase in our impairment loss allowance on Portfolio Loans and write-offs net of recoveries by
53.88% to 5,324.94 million in Fiscal 2026 from 3,460.38 million in Fiscal 2025, which was primarily attributable to the growth in our Average Gross Loans by 59.19% to 47,521.39 million for Fiscal 2026 from 29,852.06 million for Fiscal 2025.
? An increase in our Default loss guarantee expense by 40.21% to 4,510.34 million in Fiscal 2026 from 3,216.92 million in Fiscal 2025, which was primarily attributable to the increase in DLG Disbursals to
132,718.00 million in Fiscal 2026 from 112,825.20 million in Fiscal 2025.
Other expenses
The largest component of other expenses was marketing and direct sourcing cost, which increased by 2.94% to
4,391.09 million in Fiscal 2026 from 4,265.64 million in Fiscal 2025. Our marketing and direct sourcing costs as a percentage of Loan Disbursals declined from 2.42% in Fiscal 2025 to 1.90% in Fiscal 2026, supported by optimized performance marketing, and embedded partnerships with digital platforms.
Our other expenses increased by 21.87% to 9,632.34 million in Fiscal 2026 from 7,903.60 million in Fiscal
2025, primarily due to:
? an increase in outsource service cost by 47.88% to 2,907.04 million in Fiscal 2026 from 1,965.85 million in Fiscal 2025. This cost primarily comprises collection service costs, which was driven by growth in our Managed AUM as well as an increase in collection service commission rates due to heightened market competition and
? an increase in information technology maintenance cost by 38.12% to 893.07 million in Fiscal 2026 from 646.57 million in Fiscal 2025 primarily due to our increased business activities.
Restated profit before exceptional items and tax
As a result of the foregoing, our restated profit before exceptional items and tax increased by 67.29% to 5,340.07 million in Fiscal 2026 from 3,192.11 million in Fiscal 2025.
Exceptional items, loss
Exceptional items, loss in Fiscal 2026 amounted to 2,066.53 million ( 1,546.39 million, net of tax), comprising: (i) a loss of 466.53 million ( 349.11 million, net of tax) relating to a cyber incident at our Material Subsidiary, WFPL; and (ii) a one-time performance-based incentive of 1,600 million ( 1,197.28 million, net of tax) paid to our Managing Director and Chief Executive Officer. There were no exceptional items in Fiscal 2025.
Cyber incident at our Material Subsidiary, WFPL
WFPL experienced a cyber incident between August 5, 2025 and August 7, 2025. The loss arising from the incident amounted to 466.53 million ( 349.11 million, net of tax, after considering a tax credit of 117.42 million). For additional information, see "Risk Factors 14. Any actual or perceived cybersecurity, data or privacy breach, or regulatory, legislative and policy developments in the area of data privacy and security, could interrupt our operations and adversely affect our reputation, brand, business, financial condition and results of operation. Further, we integrate our information technology systems with platforms of various third parties and if there is any unauthorised data revision or a failure to maintain data integrity on the part of third parties, or if such third parties do not perform adequately or terminate their relationships with us, it may severely and negatively impact our ability to serve our users, and our business, financial condition and results of operations could be adversely affected" on page 41.
Upon identification of the incident, we promptly engaged an independent forensic firm to conduct a comprehensive investigation. Based on the findings and recommendations of this investigation, we have strengthened our information technology infrastructure, security framework, and internal controls.
WFPL informed the relevant regulatory and enforcement authorities, including the Reserve Bank of India (RBI) and CERT-In, within the applicable regulatory timelines. As of the date of this Red Herring Prospectus, WFPL has not received any show-cause notice, penalty or adverse direction from any regulatory authority in this regard. In addition, none of our lending partners and debt providers have issued any termination notices or made any adverse demands in connection with the incident as of the date of this Red Herring Prospectus.
The incident was limited to the subsidiarys disbursement bank account and did not involve any compromise of our core systems or technology infrastructure. Other than the financial impact described above, it did not result in any disruption to business operations. We continued to provide uninterrupted end-to-end services on our platform, and there was no adverse impact on customer experience or ongoing business relationships. As of June 30, 2026, WFPL has recovered 23.45 million with the assistance of law enforcement agencies, and efforts for further recovery are ongoing. We have also filed an insurance claim, which remains under process.
One-time performance-based incentive
Further, our Board and Shareholders have, by way of resolutions dated March 3, 2026, approved a one-time performance-based incentive of 1,600 million to our Managing Director and Chief Executive Officer. As a consequence, a tax credit of 402.72 million is included within current tax expense as an exceptional item, and the exceptional item, net of tax, amounted to 1,197.28 million.
As a result, restated profit for the year before exceptional items (net of tax) for Fiscal 2026 was 3,973.44 million as compared to the reported restated profit for the same year of 2,427.05 million. Further, earnings per equity share - basic and earnings per equity share - diluted for Fiscal 2026 before giving effect to the exceptional items
(net of tax) were 2.61 and 2.57, respectively, as compared to the disclosed earnings per equity share - basic and earnings per equity share - diluted of 1.60 and 1.57, respectively.
Total tax expense
Our total tax expense was 846.49 million in Fiscal 2026 compared to 789.36 million in Fiscal 2025. The effective tax rate for Fiscal 2026 was 25.86% compared to 24.73% for Fiscal 2025.
Restated profit for the year
As a result of the foregoing, our restated profit for the year increased by 1.01% to 2,427.05 million in Fiscal
2026 from 2,402.75 million in Fiscal 2025.
Restated profit for the year before exceptional items (net of tax) as a percentage of total income
Our restated profit for the year before exceptional items (net of tax) as a percentage of total income improved from 10.10% in Fiscal 2025 to 11.67% in Fiscal 2026 primarily due to operating leverage as revenue from operations continued to scale while operating expenses grew at a slower rate. However, our restated profit for the year as a percentage of total income was 7.13% in Fiscal 2026, primarily due to the recognition of exceptional items, loss of 2,066.53 million during the year.
As our platform continues to scale, management believes that the observed variation in restated profit after tax as a percentage of total income will stabilize and improve due to our strategy of prioritizing operational efficiency, strengthening portfolio quality and diversifying our funding sources. See the section titled "Our Business Our Growth Strategies Drive income growth and cost efficiency to further enhance profitability and return on equity" on page 231 of this Red Herring Prospectus for further details.
Fiscal 2025 compared to Fiscal 2024
Income
Our total income increased by 71.21% to 23,785.29 million in Fiscal 2025 from 13,892.41 million in Fiscal
2024, primarily due to an increase in our total revenue from operations.
Total revenue from operations
Our total revenue from operations increased by 74.25% to 23,391.46 million for Fiscal 2025 from 13,423.70 million for Fiscal 2024 due to an increase in fees and commission income, interest income, gain on derecognition of financial assets and other operating income.
Fees and commission income
Our fees and commission income increased by 46.43% to 14,867.98 million for Fiscal 2025 from 10,153.77 million for Fiscal 2024, primarily due to an increase in our Loan Disbursals to 176,211.18 million in Fiscal 2025 from 145,271.56 million in Fiscal 2024 and an increase in Managed AUM to 167,151.41 million as of March 31, 2025 from 128,848.26 million as of March 31, 2024.
Interest income
Our interest income increased by 162.29% to 7,890.46 million for Fiscal 2025 from 3,008.33 million for Fiscal 2024, primarily due to the growth of Average Gross Loans by 147.91% to 29,852.06 million for Fiscal 2025 from 12,041.50 million for Fiscal 2024.
Gain on derecognition of financial assets
Our gain on derecognition of financial assets was 285.48 million for Fiscal 2025 compared 57.46 million for
Fiscal 2024, due to the commencement of direct assignments of our Portfolio Loans in March 2024.
Other operating income
Our other operating income increased by 70.25% to 347.54 million for Fiscal 2025 from 204.14 million for
Fiscal 2024, in line with the growth in DLG disbursals.
Other income
Our other income decreased by 15.98% to 393.83 million in Fiscal 2025 from 468.71 million in Fiscal 2024, primarily due to a decrease in interest income on fixed deposits free from lien by 68.18% to 83.05 million in Fiscal 2025 from 261.04 million in Fiscal 2024, partially offset by an increase in net fair value gain on financial instruments measured at FVTPL by 36.62% to 274.47 million in Fiscal 2025 from 200.91 million in Fiscal
2024.
Expenses
Our total expenses increased by 72.92% to 20,593.18 million in Fiscal 2025 from 11,909.38 million in Fiscal
2024, primarily due to an increase in employee benefits expense, finance costs and impairment of financial instruments.
Employee benefits expense
Our employee benefits expense increased by 41.64% to 2,224.56 million in Fiscal 2025 from 1,570.52 million in Fiscal 2024, primarily due to an increase in salaries, wages and bonus by 46.04% to 1,853.65 million in Fiscal 2025 from 1,269.27 million in Fiscal 2024 and an increase in share-based payments to employees by 14.48% to
274.61 million in Fiscal 2025 from 239.88 million in Fiscal 2024. Both increases were primarily due to an increase in our employee headcount and annual salary increments. Our full-time employee headcount increased to 667 employees as of March 31, 2025 from 471 employees as of March 31, 2024, primarily attributable to the growth of our technology team to support the launch of new products during Fiscal 2025.
Finance costs
Our finance costs increased by 194.59% to 3,698.21 million in Fiscal 2025 from 1,255.38 million in Fiscal 2024, primarily due to an increase in interest on borrowings by 198.33% to 3,634.60 million in Fiscal 2025 from 1,218.33 million in Fiscal 2024. This was primarily attributable to an increase in Average Total Borrowings by
159.29% to 25,611.43 million for Fiscal 2025 from 9,877.69 million for Fiscal 2024, mainly to fund the growth of our Material Subsidiary, WFPLs Portfolio Loans.
Depreciation and amortisation expense
Our depreciation and amortisation expense increased by 84.18% to 89.51 million in Fiscal 2025 from 48.60 million in Fiscal 2024, due to increases in depreciation on property, plant, and equipment, right-of-use assets and amortisation on intangible assets.
Impairment of financial instruments
Our impairment of financial instruments measured at amortised cost increased by 164.22% to 6,677.30 million in Fiscal 2025 from 2,527.17 million in Fiscal 2024, primarily due to:
? An increase in our impairment loss allowance on Portfolio Loans and write-offs net of recoveries by
184.76% to 3,460.38 million in Fiscal 2025 from 1,215.21 million in Fiscal 2024. This increase was primarily attributable to the growth in our Average Gross Loans by 147.91% to 29,852.06 million for Fiscal 2025 from 12,041.50 million for Fiscal 2024.
? An increase in our Default loss guarantee expense by 145.20% to 3,216.92 million in Fiscal 2025 from 1,311.96 million in Fiscal 2024. The increase was primarily attributable to the increase in DLG Disbursals to 112,825.20 million in Fiscal 2025 from 88,481.47 million in Fiscal 2024
Other expenses
The largest component of other expenses was marketing and direct sourcing cost, which increased by 0.54% to
4,265.64 million in Fiscal 2025 from 4,242.84 million in Fiscal 2024. Our marketing and direct sourcing costs as a percentage of Loan Disbursals declined from 2.92% in Fiscal 2024 to 2.42% in Fiscal 2025, supported by optimized performance marketing, and embedded partnerships with digital platforms.
Our other expenses increased by 21.45% to 7,903.60 million in Fiscal 2025 from 6,507.71 million in Fiscal 2024, primarily due to:
? an increase in outsource service cost by 73.01% to 1,965.85 million in Fiscal 2025 from 1,136.28 million in Fiscal 2024. Outsource service cost primarily comprises collection service costs, and the increase was driven by growth in our Managed AUM as well as an increase in collection service commission rates due to heightened market competition;
? an increase in transaction processing cost by 74.87% to 517.00 million in Fiscal 2025 from 295.64 million in Fiscal 2024 due to the launch of new products and growth in Managed AUM; and
? an increase in information technology maintenance cost by 50.58% to 646.57 million in Fiscal 2025 from 429.38 million in Fiscal 2024 primarily due to our increased business activities.
Restated profit before tax
As a result of the foregoing, our restated profit before tax increased by 60.97% to 3,192.11 million in Fiscal 2025 from 1,983.03 million in Fiscal 2024.
Total tax expense
Our total tax expense was 789.36 million in Fiscal 2025 compared to 271.56 million in Fiscal 2024. The effective tax rate for Fiscal 2025 was 24.73% compared to 13.69% for Fiscal 2024. The increase in effective tax rate was primarily due to accumulated losses utilized in Fiscal 2024.
Restated profit for the year
As a result of the foregoing, our restated profit for the year increased by 40.39% to 2,402.75 million in Fiscal
2025 from 1,711.47 million in Fiscal 2024.
Restated profit for the year before exceptional items (net of tax) as a percentage of total income
Our restated profit for the year before exceptional items (net of tax) as a percentage of total income decreased from 12.32% in Fiscal 2024 to 10.10% in Fiscal 2025. The decrease was primarily due to the utilization of accumulated losses in Fiscal 2024, which resulted in a lower tax expense, as compared to Fiscal 2025, where no such benefit was available and tax was recognized at the full applicable rate.
Summary of the Restated Statement of Assets and Liabilities
The table below sets forth our total assets, total liabilities and total equity as of the dates indicated.
As of June 30, |
As of March 31, | ||||
Particulars |
2026 |
2025 | 2026 | 2025 | 2024 |
(in million) |
|||||
| Total assets | 86,418.90 | 64,048.22 | 81,048.54 | 56,324.20 | 35,195.01 |
| Total liabilities | 62,266.87 | 44,138.15 | 58,794.31 | 37,137.56 | 19,128.57 |
| Total equity | 24,152.03 | 19,910.07 | 22,254.23 | 19,186.64 | 16,066.44 |
Assets
Our total assets increased from 64,048.22 million as of June 30, 2025 to 86,418.90 million as of June 30, 2026, and from 35,195.01 million as of March 31, 2024, to 56,324.20 million as of March 31, 2025 and to 81,048.54 million as of March 31, 2026. The increase in our total assets was primarily driven by an increase in our Portfolio
Loans. Our Portfolio Loans increased from 43,374.66 million as of June 30, 2025 to 53,792.00 million as of June 30, 2026, and from 19,608.07 million in Fiscal 2024, to 37,703.80 million as of March 31, 2025 and to 53,076.55 million as of March 31, 2026 in line with expansion of our disbursements and user base.
Liabilities and equity
Our total liabilities increased from 44,138.15 million as of June 30, 2025 to 62,266.87 million as of June 30, 2026, and from 19,128.57 million as of March 31, 2024, to 37,137.56 million as of March 31, 2025 and to 58,794.31 million as of March 31, 2026. This increase in our total liabilities was primarily driven by an increase in our borrowings. Our total borrowings increased from 40,701.39 million as of June 30, 2025 to 54,847.58 million as of June 30, 2026, and from 17,089.18 million as of March 31, 2024, to 34,133.67 million as of March 31, 2025 and to 51,570.38 million as of March 31, 2026, primarily to fund the growth of our Portfolio Loans.
Our borrowings primarily comprised non-convertible debentures, term loans, and commercial paper.
Our total equity increased from 19,910.07 million as of June 30, 2025 to 24,152.03 million as of June 30, 2026, and from 16,066.44 million as of March 31, 2024, to 19,186.64 million as of March 31, 2025 and to 22,254.23 million as of March 31, 2026. Our total equity increased primarily due to an increase in our other equity. Our other equity increased from 19,504.45 million as of June 30, 2025 to 23,748.42 million as of June 30, 2026, and 15,692.14 million as of March 31, 2024 to 18,781.02 million as of March 31, 2025 and 21,850.62 million as of March 31, 2026, primarily due to increases in our retained earnings, securities premium from our capital-raising activities and share based payment reserves.
Non-GAAP Financial Measures
In addition to our results determined in accordance with Ind AS, we believe our non-GAAP measures, including Net Worth, Net Asset Value per Share, Return on Net Worth, Return on Equity, Net Stage 3 Loans, Gross Stage
3 Loans Ratio, Net Stage 3 Loans Ratio, Provision Coverage Ratio, Operating Profit, Operating Expenses, Operating Expenses /Total Income, EBIT, EBITDA, Interest Coverage ratio, Average cost of borrowings and Debt to Equity ratio, are useful to investors in evaluating our operating performance. We use the following Non-GAAP measure to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Non-GAAP measures, when taken collectively with financial measures prepared in accordance with Ind AS, may be helpful to investors because it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies in our industry because it provides consistency and comparability with past financial performance. However, our management does not consider these Non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with Ind AS.
Non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with Ind AS. Non-GAAP financial information may be different from similarly titled Non-GAAP measures used by other companies. The principal limitation of these Non-GAAP financial measures is that they exclude significant expenses and income that are required by Ind AS to be recorded in our financial statements, as further detailed below. In addition, they are subject to inherent limitations as they reflect the exercise of judgement by management about which expenses and income are excluded or included in determining these Non-GAAP financial measures. A reconciliation is provided below for each Non-GAAP financial measure to the most directly comparable financial measure prepared in accordance with Ind AS. Investors are encouraged to review the related Ind AS financial measures and the reconciliation of Non-GAAP financial measures to their most directly identifiable Ind AS financial measures included below and to not rely on any single financial measure to evaluate our business. For further details, see "Risk Factors 50. We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other measures related to our operations and financial performance that may vary from any standard methodology that is applicable across the industry we operate." on page 70.
Reconciliation of Net Worth, Net Asset Value per Share and Return on Net Worth %
( in millions, unless otherwise stated)
As at and for the three month |
As at and for the financial year ended March 31, |
||||
Particulars |
period ended June 30, |
||||
| 2026 | 2025 | 2026 | 2025 | 2024 | |
| Equity Share Capital | 382.16 | 382.16 | 382.16 | 382.16 | 352.87 |
| (A) | |||||
| Instruments entirely | 21.45 | 23.46 | 21.45 | 23.46 | 21.43 |
| equity in nature (B) | |||||
| Other equity (C) | 23,748.42 | 19,504.45 | 21,850.62 | 18,781.02 | 15,692.14 |
| Net Worth (D) = | 24,152.03 | 19,910.07 | 22,254.23 | 19,186.64 | 16,066.44 |
| (A+B+C) | |||||
| Number of equity | 1,535.30 | 1,535.46 | 1,527.58 | 1,533.22 | 1,517.47 |
| shares, compulsorily | |||||
| convertible preference | |||||
| shares as if converted | |||||
| basis and vested | |||||
| employee stock | |||||
| options outstanding at | |||||
| the end of the | |||||
| year/period (in million) | |||||
| (E) | |||||
Net Asset Value per |
15.73 | 12.97 | 14.57 | 12.51 | 10.59 |
Share (in ) (F) = |
|||||
(D/E) |
|||||
| Restated profit for the | 1,736.22 | 671.52 | 3,973.44 | 2,402.75 | 1,711.47 |
| period / year before | |||||
| exceptional items (net | |||||
| of tax) (G) | |||||
Return on Net Worth |
7.19% | 3.37% | 17.85% | 12.52% | 10.65% |
(in %) (H) = (G/D) |
|||||
Reconciliation of Return on Equity %
As at and for the three month |
As at and for the financial year ended March 31, |
||||
Particulars |
period ended June 30, |
||||
| 2026 | 2025 | 2026 | 2025 | 2024 | |
| Opening Equity (A) | 22,254.23 | 19,186.64 | 19,186.64 | 16,066.44 | 13,142.72 |
| Closing Equity (B) | 24,152.03 | 19,910.07 | 22,254.23 | 19,186.64 | 16,066.44 |
| Average Equity (C = | 23,203.13 | 19,548.36 | 20,720.44 | 17,626.54 | 14,604.58 |
| (A+B)/2) | |||||
| Restated Profit for the period | 1,736.22 | 671.52 | 3,973.44 | 2,402.75 | 1,711.47 |
| / year before exceptional | |||||
| items (net of tax) (D) | |||||
Return on Equity (E) = |
29.93%* | 13.74%* | 19.18% | 13.63% | N.A |
(D/C) (in %) |
|||||
* The Return on Equity for the three month periods ended June 30, 2026 and June 30, 2025 have been calculated and presented on an annualised basis to facilitate comparability with full-year periods
Reconciliation of Operating Profit
For the three month period |
For the financial year ended March 31, |
||||
ended June 30, |
|||||
Particulars |
|||||
| 2026 | 2025 | 2026 | 2025 | 2024 | |
(in million) |
|||||
| Profit before exceptional | 2,327.49 | 897.27 | 5,340.07 | 3,192.11 | 1,983.03 |
| items and tax (A) | |||||
| Closing Impairment loss | 2,782.59 | 2,121.97 | 2,636.46 | 1,625.96 | 766.29 |
| allowance (B) | |||||
| Opening Impairment loss | 2,636.46 | 1,625.96 | 1,625.96 | 766.29 | 295.24 |
| allowance (C) | |||||
| Impairment loss allowance on | 146.13 | 496.01 | 1,010.50 | 859.67 | 471.05 |
| portfolio loans for the | |||||
| period/year (D) = (B) (C) | |||||
| Closing Provision for default | 1,450.95 | 676.85 | 1,347.01 | 487.44 | 283.78 |
| loss guarantee (E) | |||||
| Opening Provision for default | 1,347.01 | 487.44 | 487.44 | 283.78 | - |
| loss guarantee (F) | |||||
| Provision for default loss | 103.94 | 189.41 | 859.57 | 203.66 | 283.78 |
| guarantee for the period/year | |||||
| (G) = (E) (F) | |||||
| Share based payments to | 160.15 | 54.86 | 591.24 | 274.61 | 239.88 |
| employees (H) | |||||
| Depreciation and amortisation | 31.74 | 23.11 | 98.79 | 89.51 | 48.60 |
| expense (I) | |||||
| Total Non Cash items (J) = | 441.96 | 763.39 | 2,560.10 | 1,427.45 | 1,043.31 |
| (D) + (G) + (H) + (I) | |||||
Operating Profit (K) = (A) + |
2,769.45 | 1,660.66 | 7,900.17 | 4,619.56 | 3,026.35 |
(J) |
|||||
Reconciliation of Net Stage 3 Loans, Gross Stage 3 Loans Ratio %, Net Stage 3 Loans Ratio %, and Provision Coverage Ratio %
As at June 30, |
As at March 31, | ||||
Particulars |
2026 | 2025 | 2026 | 2025 | 2024 |
(in million except percentages) |
|||||
| Gross Stage 3 Loans (A) | 1,539.27 | 1,175.99 | 1,524.29 | 739.70 | 190.87 |
| Gross Stage 3 Impairment | 1,214.99 | 887.88 | 1,168.38 | 558.48 | 153.63 |
| Loss Allowance (B) | |||||
Net Stage 3 Loans(C) = (A- |
324.28 | 288.11 | 355.91 | 181.22 | 37.24 |
B) |
|||||
| Total Gross Loans (D) | 56,574.59 | 45,496.63 | 55,713.01 | 39,329.76 | 20,374.36 |
Gross Stage 3 Loans Ratio |
2.72% | 2.58% | 2.74% | 1.88% | 0.94% |
(E) = (A/D) (in %) |
|||||
Net Stage 3 Loans Ratio (F) |
0.59% | 0.65% | 0.65% | 0.47% | 0.18% |
= (C/(D-B)) (in %) |
|||||
Provision Coverage Ratio |
78.93% | 75.50% | 76.65% | 75.50% | 80.49% |
(G) = (B/A) (in %) |
|||||
Reconciliation of Average Cost of Borrowings
For the three month period |
For the financial year ended March 31, |
||||
ended June 30, |
|||||
Particulars |
|||||
| 2026 | 2025 | 2026 | 2025 | 2024 | |
(in million |
unless otherwise stated) |
||||
| Finance Costs (A) | 1,881.27 | 1,335.19 | 6,316.90 | 3,698.21 | 1,255.38 |
| Average Total Borrowings | 53,208.98 | 37,417.53 | 42,852.03 | 25,611.43 | 9,877.69 |
| (B) | |||||
Average cost of Borrowings |
14.14%* | 14.27%* | 14.74% | 14.44% | 12.71% |
(C) = (A/B) (in %) |
|||||
* The Average cost of Borrowings for the three month period ended June 30, 2026 and June 30, 2025 have been calculated and presented on an annualised basis to facilitate comparability with full-year periods
Reconciliation of Operating Expenses and Operating Expenses / Total Income
For the three month period |
For the financial year ended March 31, |
||||
ended June 30, |
|||||
Particulars |
|||||
| 2026 | 2025 | 2026 | 2025 | 2024 | |
(in million except percentages unless otherwise stated) |
|||||
| Total Expenses (A) | 8,323.43 | 6,131.89 | 28,702.67 | 20,593.18 | 11,909.38 |
| Finance Costs (B) | 1,881.27 | 1,335.19 | 6,316.90 | 3,698.21 | 1,255.38 |
| Impairment of Financial | 2,614.03 | 2,004.30 | 9,835.28 | 6,677.30 | 2,527.17 |
| Instruments (C) | |||||
| Depreciation and | 31.74 | 23.11 | 98.79 | 89.51 | 48.60 |
| Amortization Expense (D) | |||||
| Share Based Payments to | 160.15 | 54.86 | 591.24 | 274.61 | 239.88 |
| Employees (E) | |||||
Operating Expenses (F) = |
3,636.24 | 2,714.43 | 11,860.46 | 9,853.55 | 7,838.35 |
(A-B-C-D-E) |
|||||
| Total Income (G) | 10,650.92 | 7,029.16 | 34,042.74 | 23,785.29 | 13,892.41 |
Operating Expenses / Total |
34.14% | 38.62% | 34.84% | 41.43% | 56.42% |
Income (in %) (H) = (F/G) |
|||||
Reconciliation from Restated profit for the period/ year to Earning Before Interest, Tax, Depreciation and Amortisation ("EBITDA"), Earning Before Interest, Tax ("EBIT"), Interest Coverage ratio
For the three month period |
For the financial year ended March 31, |
||||
ended June 30, |
|||||
Particulars |
|||||
| 2026 | 2025 | 2026 | 2025 | 2024 | |
(in million, unless otherwise stated) |
|||||
| Restated Profit for the period | 1,737.96 | 671.52 | 2,427.05 | 2,402.75 | 1,711.47 |
| / year (A) | |||||
| Total tax expense (B) | 591.85 | 225.75 | 846.49 | 789.36 | 271.56 |
| Finance Costs (C) | 1,881.27 | 1,335.19 | 6,316.90 | 3,698.21 | 1,255.38 |
| Depreciation and | 31.74 | 23.11 | 98.79 | 89.51 | 48.60 |
| amortisation expense (D) | |||||
EBITDA (E) = (A+B+C+D) |
4,242.82 | 2,255.57 | 9,689.23 | 6,979.83 | 3,287.01 |
EBIT (F) = (A+B+C) |
4,211.08 | 2,232.46 | 9,590.44 | 6,890.32 | 3,238.41 |
Interest Coverage Ratio (in |
2.24 | 1.67 | 1.52 | 1.86 | 2.58 |
times) (G) = (F /C) |
|||||
Reconciliation of Debt to Equity ratio
As at June 30, |
As at March 31, |
|||||
Particulars |
2026 |
2025 | 2026 |
2025 | 2024 | |
(in million unless otherwise stated) |
||||||
| Borrowings (Non | 21,309.71 | 15,186.27 | 20,196.41 |
12,011.24 | 4,223.75 | |
| Current) (A) | ||||||
| Borrowings | 33,537.87 | 25,515.12 | 31,373.97 |
22,122.43 | 12,865.43 | |
| (Current) (B) | ||||||
Total |
54,847.58 |
40,701.39 | 51,570.38 |
34,133.67 | 17,089.18 | |
Borrowings (C) = |
||||||
(A+B) |
||||||
Total Equity (D) |
24,152.03 |
19,910.07 | 22,254.23 |
19,186.64 | 16,066.44 | |
Debt to Equity |
2.27 |
2.04 | 2.32 |
1.78 | 1.06 | |
Ratio (in times) |
||||||
(E) = (C)/(D) |
||||||
Liquidity and Capital Resources
Historically, our primary liquidity requirements have been to finance our working capital needs including our Portfolio Loans. We have met these requirements through cash flows from operations, equity infusions from shareholders and borrowings. As of June 30, 2026, we had cash and cash equivalents of 13,423.04 million and bank balances other than cash and cash equivalents of 53.90 million. As of June 30, 2026, we had current borrowings of 33,537.87 million, which primarily include term loans and non-convertible debentures.
We believe our existing cash, cash equivalents, and proceeds from the Offer, along with current borrowings available to us, will be sufficient to meet our working capital and capital expenditures needs for the next 12 months.
We actively manage our liquidity and capital position by raising funds periodically. We regularly monitor our funding levels to ensure that we are able to satisfy the requirements for loan disbursements and maturity of our liabilities. All our loan agreements and debentures contain a number of covenants including financial covenants.
See "Risk Factors 21. Our indebtedness and the conditions and restrictions imposed by our financing arrangements may limit our ability to grow our business and adversely impact our business, results of operations, financial condition, and cash flows." on page 49.
Cash Flows
The table below summarises the statement of cash flows for the periods/Fiscals indicated:
Three month period ended June |
|||||
| Fiscal | |||||
| 30, | |||||
Particulars |
|||||
| 2026 | 2025 | 2026 | 2025 | 2024 | |
| ( million) | ( million) | ( million) | ( million) | ( million) | |
| Net cash flow generated | 1,171.15 | (5,426.44) | (9,509.02) | (14,207.05) | (16,327.36) |
| from/ (used in) operating | |||||
| activities | |||||
| Net cash flow (used in)/ | (916.43) | (169.56) | (2,308.49) | (1,352.95) | 4,522.14 |
| generated from investing | |||||
| activities | |||||
| Net cash flow generated | 2,897.38 | 6,508.65 | 16,477.94 | 16,596.40 | 15,178.07 |
| from financing activities | |||||
| Cash and cash | 13,423.04 | 6,523.16 | 10,270.94 | 5,610.51 | 4,574.11 |
| equivalents at the end of | |||||
| the period/year | |||||
As a result of the nature of our business, while we had a net increase in cash and cash equivalents, we incurred negative cash flows from operating activities in the Fiscals 2026, 2025 and 2024 as disbursals of Portfolio Loans are classified under operating activities, while the corresponding borrowings are reflected under financing activities. Increases in loans, which amounted to 6,716.92 million for the three months ended June 30, 2025, 20,304.04 million in Fiscal 2026, 21,116.03 million in Fiscal 2025 and 17,035.82 million in Fiscal 2024, are recorded as working capital movements within net cash flows used in operating activities, whereas the proceeds of such borrowings are recorded within net cash flow from financing activities.
We maintain a robust liquidity management framework focused on ensuring adequate funding availability and capital adequacy to support the growth of our lending operations. As at June 30, 2026, we had borrowing relationships with 50 debt partners, including 17 banks. We also maintain liquidity buffers in the form of cash and cash equivalents, liquid investments to meet operational and disbursement requirements. Set out below is a table showing WFPLs LCR for the periods presented:
For the three month period ended |
||||
Particulars |
||||
| June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | |
| LCR | 174.27% | 166.43% | 157.22% | 135.73% |
The growth in our lending operations has been supported by a corresponding increase in borrowings. Total borrowings increased from 17,089.18 million as of March 31, 2024 to 51,570.38 million as of March 31, 2026, representing a CAGR of 73.72%, and further increased to 54,847.58 million as of June 30, 2026. During the same period, Gross Loans increased from 20,374.36 million as of March 31, 2024 to 55,713.01 million as of March 31, 2026, representing a CAGR of 65.36%, and further increased to 56,574.59 million as of June 30, 2026.
Accordingly, the funding requirements of our lending business have historically increased in line with the growth of our material subsidiary, WFPLs Portfolio Loans. Our diversified funding profile and access to multiple borrowing instruments position us to support the funding requirements of our lending operations as the business continues to scale.
Cash flows from Operating Activities
Our net cash flow used in operating activities was negative in the Fiscals 2026, 2025 and 2024 primarily due to the increase in our Portfolio Loans (Fiscal 2026: 20,304.04 million Fiscal 2025: 21,116.03 million; and Fiscal 2024: 17,035.82 million).
Our net cash flow generated from operating activities for the three month period ended June 30, 2026 was
1,171.15 million, while our operating profit before working capital changes was 4,230.09 million. Our restated profit before tax of 2,329.81 million was adjusted primarily for impairment loss allowance on Portfolio Loans of 1,601.00 million, interest expense on borrowings of 1,868.57 million, and interest income on Portfolio Loans of 3,871.66 million, offset by interest received on Portfolio Loans of 3,870.26 million and interest payments on borrowings (in respect of financial services business) of 1,529.18 million. Our movements in working capital for the three month period ended June 30, 2026 were primarily due to an increase in loans of 2,317.02 million and a decrease in other liabilities of 455.95 million, partially offset by an increase in trade payable of 458.85 million. Income taxes paid (net of refund) were 425.69 million.
Our net cash flow used in operating activities for the three month period ended June 30, 2025 was 5,426.44 million, while our operating profit before working capital changes was 1,881.00 million. Our restated profit before tax of 897.27 million was adjusted primarily for impairment loss allowance on Portfolio Loans of
1,180.14 million, interest expense on borrowings of 1,327.35 million, and interest income on Portfolio Loans of 2,829.16 million, partially offset by interest received on Portfolio Loans of 2,699.57 million and interest payments on borrowings (in respect of financial services business) of 1,278.71 million. Our movements in working capital for the three month period ended June 30, 2025 were primarily due to an increase in loans of
6,716.92 million, partially offset by an increase in other liabilities of 328.28 million. Income taxes paid (net of refund) were 370.80 million.
Our net cash flow used in operating activities for Fiscal 2026 was 9,509.02 million, while our operating profit before working capital changes was 9,358.60 million. Our restated profit before tax of 3,273.54 million was adjusted primarily for impairment loss allowance on portfolio loans of 5,324.94 million, interest expense on borrowings of 6,283.97 million, and interest income on Portfolio Loans of 13,127.00 million, partially offset by interest received on Portfolio Loans of 12,749.45 million and interest payments on borrowings (in respect of financial services business) of 5,337.00 million. Our movements in working capital for Fiscal 2026 were primarily due to an increase in loans of 20,304.04 million partially offset by an increase in other liabilities of 3,614.61 million. Income taxes paid (net of refund) were 1,053.72 million.
Our net cash flow used in operating activities for Fiscal 2025 was 14,207.05 million, while our operating profit before working capital changes was 7,054.65 million. Our restated profit before tax of 3,192.11 million was adjusted primarily for impairment loss allowance on portfolio loans of 3,460.38 million, interest expense on borrowings of 3,634.60 million, and interest income on Portfolio Loans of 7,890.46 million, partially offset by interest received on Portfolio Loans of 7,450.38 million and interest payments on borrowings (in respect of financial services business) of 2,788.37 million. Our movements in working capital for Fiscal 2025 were primarily due to an increase in loans of 21,116.03 million, partially offset by an increase in other liabilities of 523.22 million. Income taxes paid (net of refund) were 456.95 million.
Our net cash flow used in operating activities for Fiscal 2024 was 16,327.36 million, while our operating profit before working capital changes was 2,751.99 million. Our restated profit before tax of 1,983.03 million was adjusted primarily for impairment loss allowance on portfolio loans of 1,215.21 million, interest expense on borrowings of 1,218.33 million, and interest income on Portfolio Loans of 3,008.33 million, partially offset by interest received on Portfolio Loans of 2,634.20 million and interest payments on borrowings (in respect of financial services business) of 1,044.92 million. Our movements in working capital for Fiscal 2024 were primarily due to an increase in loans of 17,035.82 million and an increase in trade receivables of 1,378.98 million, partially offset by an increase in in other liabilities of 231.17 million. Income taxes paid (net of refund) were 929.60 million.
Cash flows from Investing Activities
Our net cash flow used in investing activities for the three month period ended June 30, 2026 was 916.43 million, which primarily consisted of investments in bank deposits of 2,500.99 million and purchase of mutual funds of 50,429.87 million and purchase of debt securities of 5,477.37 million, which was partially offset by proceeds from sale of mutual funds of 50,600.31 million and proceeds from sale of debt securities of 5,096.01 million and proceeds from redemption/maturity of bank deposits of 1,714.09 million.
Our net cash flow used in investing activities for the three month period ended June 30, 2025 was 169.56 million, which primarily consisted of investments in bank deposits of 1,300.99 million and purchase of mutual funds of 30,291.89 million, which was partially offset by proceeds from sale of mutual funds of 30,320.19 million and proceeds from redemption/maturity of bank deposits of 1,012.80 million.
Our net cash flow used in investing activities for Fiscal 2026 was 2,308.49 million, which primarily consisted of investments in bank deposits of 7,187.95 million and purchase of mutual funds of 153,964.18 million and purchase of debt securities of 10,584.30 million, which was partially offset by proceeds from sale of mutual
404 funds of 154,549.32 million and proceeds from sale of debt securities of 8,962.88 million and proceeds from redemption/maturity of bank deposits of 5,824.21 million.
Our net cash flow used in investing activities for Fiscal 2025 was 1,352.95 million, which primarily consisted of investments in bank deposits of 10,179.49 million and purchase of mutual funds of 78,664.61 million, which was partially offset by proceeds from sale of mutual funds of 79,342.97 million and proceeds from redemption/maturity of bank deposits of 8,756.41 million.
Our net cash flow generated from investing activities for Fiscal 2024 was 4,522.14 million, which primarily consisted of proceeds from sale of mutual funds of 30,044.97 million and proceeds from redemption/maturity of bank deposits of 9,928.20 million, which was partially offset by investments in bank deposits of 7,372.18 million and purchase of mutual funds of 28,270.13 million.
Cash flows from Financing Activities
Our net cash flow generated from financing activities for the three month period ended June 30, 2026 was
2,897.38 million, which primarily included proceeds from borrowings of 13,317.53 million, which was partially offset by repayment of borrowings of 10,323.70 million.
Our net cash flow generated from financing activities for the three month period ended June 30, 2025 was
6,508.65 million, which primarily included proceeds from borrowings of 15,632.39 million, which was partially offset by repayment of borrowings of 9,047.20 million.
Our net cash flow generated from financing activities for Fiscal 2026 was 16,477.94 million, which primarily included proceeds from borrowings of 54,424.99 million, which was partially offset by repayment of borrowings of 37,598.66 million.
Our net cash flow generated from financing activities for Fiscal 2025 was 16,596.40 million, which primarily included proceeds from issuance of equity shares of 386.40 million and proceeds from borrowings of 40,455.94 million, which was partially offset by repayment of borrowings of 24,126.16 million.
Our net cash flow generated from financing activities for Fiscal 2024 was 15,178.07 million, which primarily included proceeds from issuance of compulsorily convertible preference shares (including call money) of
1,040.22 million and proceeds from borrowings of 20,720.84 million, which was partially offset by repayment of borrowings of 6,471.29 million.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
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