Mumbai-based InCred Holdings has filed its updated draft red herring prospectus with SEBI for a proposed IPO that includes a fresh issue of Rs 1,250 crore. The filing comes at a time when the company’s lending business has shown strong top-line growth, even as rising finance costs and loan-related write-offs kept profits almost unchanged.

For the first nine months of FY26, InCred reported revenue from operations of Rs 1,849 crore, up from Rs 1,334 crore in the same period of FY25. Its profit stood at Rs 290 crore, compared with Rs 276 crore a year earlier.

Founded by Bhupinder Singh in 2017, InCred Finance operates as a retail-focused diversified NBFC. Its lending portfolio spans personal loans, student loans, secured business loans, MSME loans and loans to financial institutions.

The company’s lending engine remained the main driver of revenue. Income from loan disbursements contributed Rs 1,689 crore, forming more than 91 percent of operating income. Fees and commission income stood at Rs 150 crore, while other operating income came from fair value gains on financial assets.

The growth, however, came with a heavier cost base. Finance costs rose 51 percent to Rs 673 crore, while employee benefit expenses increased 28 percent to Rs 311 crore. Impairment on financial instruments, including loan write-offs, jumped 86 percent. Overall expenses climbed to Rs 1,471 crore in the first nine months of FY26 from Rs 966 crore in the same period last year.

This explains the central tension in InCred’s numbers: the business is scaling, but profitability has not expanded at the same pace. The company spent around Rs 0.80 to earn every rupee in the period.

At the end of the nine-month period, InCred had total financial assets of Rs 14,269 crore, including cash and bank balance of Rs 931 crore. The proposed IPO also includes an offer for sale of 9.90 crore equity shares, with existing shareholders including KKR, MNI Ventures, Mohandas Pai, Moore Strategic and V’Ocean Investments participating.

For investors, the story is not just about revenue growth. The sharper question will be whether InCred can keep expanding its loan book while controlling credit costs, finance costs and write-offs. That balance may decide how the market reads its IPO.

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