Some NBFCs grow by keeping loans on their own books. NewTap Finance is growing by keeping them off it. The CRED-backed lender more than doubled its FY26 net profit to Rs 2.4 crore, and the real story is in how the loan book is built: 81% of its managed assets sit off-balance-sheet.
NewTap Finance reported a net profit of Rs 2.4 crore for the year ended March 31, 2026, up from Rs 1 crore in FY25, according to CRISIL Ratings. Total income, excluding interest expense, jumped 116% to Rs 259 crore from Rs 120 crore.
AUM crosses Rs 4,500 crore
Managed assets under management stood at Rs 4,582 crore at the end of FY26, growing at a CAGR of about 156% between FY23 and FY26. Around 81% of the AUM was held off-book under non-first-loss default guarantee (FLDG) arrangements, with the remaining 19% on the balance sheet.
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The portfolio is largely generated through a co-lending model involving banks and other NBFCs. Total assets increased to Rs 973 crore from Rs 887 crore, while the debt-to-equity ratio improved to 3.1X from 3.96X. Return on assets improved to 0.25% from 0.15%.
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The CRED connection
CRED has infused Rs 56.4 crore in equity and Rs 80 crore in subordinated debt into NewTap, and provides corporate guarantees for all external debt raised by the NBFC. Kunal Shah indirectly owns 74.5% of NewTap via Newtap Technologies, in which he holds a 100% stake, while CRED owns 25.2%.
CRED acts as NewTap’s lending service provider, handling customer acquisition, technology infrastructure and preliminary customer assessment. NewTap remains responsible for underwriting, pricing, KYC and regulatory compliance.
Asset quality in focus
Given NewTap’s focus on unsecured lending, asset quality remains a key monitorable, CRISIL said. Gross Stage 3 assets increased to 0.94% in FY26 from 0.77% the previous year. Stage 3 assets refer to credit-impaired loans, typically where repayments are overdue by more than 90 days.
However, collection efficiency averaged more than 97% over the past 12 months, and around 90% of the AUM comprised borrowers with credit scores above 750.
What lies ahead
Incorporated in 2021, NewTap offers short-term personal loans and loans against mutual funds to salaried and self-employed borrowers. It began lending in September 2022 and operates across 23 states and four Union Territories.
The growing loan book gives CRED room to expand credit offerings through co-lending and partnerships without retaining most of the portfolio on NewTap’s balance sheet. That model – scale without balance-sheet risk – is what makes this small profit figure worth watching.