Navi Finserv posts 19% revenue growth in FY25 despite temporary lending ban
Navi Finserv's net profit declined sharply from the previous year, which had included a significant one-time gain from the sale of a subsidiary.
Non-banking finance company Navi Finserv posted a 19.1% year-on-year rise in revenue from operations for the financial year ended March 31, 2025, driven by higher interest income.
However, net profit declined sharply from the previous year, which had included a significant one-time gain from the sale of a subsidiary.
Total revenue from operations rose to Rs 2,271 crore in FY25 from Rs 1,906 crore a year earlier. The growth was led by a 23% increase in interest income, which climbed to Rs 1,981 crore despite a regulatory setback halting its lending activity for over a month.
Despite the healthy topline, profit-after-tax (PAT) for the year fell 66.8% to Rs 222 crore, from Rs 669 crore in FY24. The prior year’s earnings had been inflated by a Rs 704.06 crore gain from the sale of its subsidiary, Chaitanya India Fin Credit, which was divested in November 2023.
Excluding that one-off gain core profitability also faced some pressures. Impairment charges on financial instruments, a proxy for loan loss provisions, increased 16.8% year-on-year to Rs 578.79 crore.
Finance costs rose 21.1% YoY to Rs 797 crore, while employee benefit expenses were up 15.1% at Rs 172.56 crore. Total expenses grew 13.6% to Rs 1,988.88 crore.
The RBI had temporarily barred Navi Finserv from sanctioning and disbursing loans from October 21 to December 2, 2024, due to compliance issues. The company resumed operations after demonstrating corrective action, suggesting that Navi was under close regulatory scrutiny during the period.
In April, Navi Co-founder and chairman Sachin Bansal revealed that the fintech firm had plans to go public by FY26. “We have reached a stage where we have 20 million monthly active users and 40 million who have ever used the platform. It's gone to a very decent stage,” Bansal had said. “Now we are at a place where we can use more capital, and I think public markets is the best source of capital. Ideally, we would like to IPO by FY26, if we can.”
In February, Bansal, Co-founder of Navi Group, stepped down as CEO of its subsidiaries Navi Technologies Limited (NTL) and Navi Finserv Limited (NFL). He transitioned to the role of executive chairman of the parent group, ceding operational leadership of the units to newly appointed CEOs Rajiv Naresh and Abhishek Dwivedi.
Edited by Kanishk Singh