Lendingkart Finance Q1: Net Loss Swells 3.4X To INR 85 Cr

SUMMARY

LendingKart Finance's operating revenue continued to shrink in the quarter under review, plunging 60% to INR 116.9 Cr from INR 290 Cr in Q1 FY25

According to the NBFC’s filings, its gross non-performing assets increased to 4.3% for the period under review from 3.7% in Q1 FY25

On the brighter side the startup’s net non-performing assets remained stable during the period. The figure stood at 2.5% in Q1 FY26 in comparison to 2.6% in the previous year’s quarter

After slipping into the red in FY25, Lendingkart Technologies’ NBFC arm Lendinkart Finance Ltd continued to bleed in the first quarter of the ongoing fiscal year.

The NBFC’s net loss for Q1 FY26 stood at INR 84.8 Cr, zooming 240.6% year-on-year (YoY) from the INR 24.9 Cr loss it incurred in the same quarter previous year. Sequentially, the company managed to trim its net loss by 30% from INR 120.5 Cr loss incurred in Q4 FY25.

The company’s operating revenue continued to shrink in the quarter under review, plunging 60% to INR 116.9 Cr from INR 290 Cr in Q1 FY25. On a quarter-on-quarter basis, the top line declined by 24% from INR 154.1 Cr.

Including an other income of INR 2.9 Cr, Lendingkart’s total income for the quarter stood at INR 119.8 Cr.

The business of Lendingkart Finance has been on a downward spiral since last year. In FY25, the company incurred a net loss of INR 288.3 Cr during the year as against a net profit of INR 60.1 Cr in the previous fiscal year while its operating revenue shrunk by 25% YoY to INR 862.2 Cr.

The company is also seeing a rise in the number of loan defaults in recent times. According to the NBFC’s filings, its gross non-performing assets increased to 4.3% for the period under review from 3.7% in Q1 FY25.

However, on the brighter side the startup’s net non-performing assets remained stable during the period. The figure stood at 2.5% in Q1 FY26 in comparison to 2.6% in the previous year’s quarter.

Additionally, the startup’s capital to risk-weighted assets ratio (CRAR) has also risen to 39.83% in the quarter under review from 21.64% in Q1FY25. This means that LendiKart Finance has adequate capital to deal with unexpected losses.

Founded in 2014 by Harshvardhan Lunia and Mukul Sachan, LendingKart provides unsecured loans to businesses and individuals with the help of its tech stack. It offers instant loans to individuals via its mobile app Upwards. Temasek-owned Fullerton Financial Holdings (FFH) also took a majority stake in the lending startup for INR 252 Cr in October last year.

Coupled with the poor financial performance, the lending tech startup is also facing a leadership exodus. Lunia, who was also the managing director of LendingKart Finance, stepped down from his role with effect from June 30. According to a report by The Morning Context, LendingKart Finance has seen eight top level exits during the last fiscal year.

Zooming Into LendingKart’s Expenses

LendingKart Finance’s total expenses fell 29% to INR 230.1 Cr in Q1FY26 from INR 323.7 Cr in the previous quarter.

Finance Cost: LendiKart Finance’s finance cost declined by 32,5% to INR 55.7 Cr in Q1FY26 from INR 82.5 Cr in the similar period last year. Finance cost includes interest on borrowings, bonds and securities.

Impairment Of Financial Instrument: The cost under this head reduced by 23.7% to INR 78.4 Cr in the quarter from INR 102.7 Cr in Q1FY25. Impairment on financial assets is the decline in the value of an asset or a loan.

Employee Benefits: The employee cost fell 28.4% to INR 30.8 Cr in Q1FY26 from INR 43 Cr in the previous year’s quarter.