Finova Capital, a lending technology startup backed by Norwest Ventures and Peak XV, reported an 11% year-on-year decline in net profit for fiscal year 2026, falling to ₹165.3 crore from ₹185 crore the previous year, according to inc42.com. Despite the profit dip, the company’s operating revenue rose 21% to ₹921.4 crore from ₹762.3 crore in FY25.
The company’s revenue primarily came from interest income, which accounted for ₹901.7 crore, supplemented by ₹10.6 crore from fees and commissions, and ₹9.1 crore from net gains on fair value changes related to investments. However, Finova’s loan disbursements fell sharply by 17% to ₹1,161.9 crore in FY26 from ₹1,396.9 crore in FY25. Meanwhile, its gross assets under management increased 10% to ₹3,827.8 crore.
Finova’s gross non-performing assets (NPAs) rose from 2.39% to 3.22%, while net NPAs increased to 1.94% from 1.41%. The company attributed the profit moderation to a challenging macroeconomic environment and market conditions in the retail and MSME lending sectors. Its annual report highlighted a strategic focus on asset quality, prudent provisioning, and portfolio resilience over short-term profitability, supported by disciplined underwriting and calibrated credit growth.
Finova Capital’s annual report emphasized its resilience amid industry challenges, noting the rise in delinquencies particularly in unsecured lending segments. The company’s gross assets under management stood at ₹3,827.8 crore at the end of FY26, reflecting its continued growth despite headwinds.