NeoGrowth FY26 Results: Revenue Drop Pushes MSME Lender Into Rs 72.34 Cr Loss

NeoGrowth reported a net loss of Rs 72.34 crore in FY26, compared with a net profit of Rs 9.02 crore in FY25. Revenue from operations fell to Rs 591.07 crore from Rs 750.31 crore in the previous fiscal year, according to annual financial statements filed with the Registrar of Companies. The key takeaway for readers: lower expenses helped, but not enough to offset the decline in income.

Interest income, NeoGrowth’s primary revenue source, declined 21.4% to Rs 566.97 crore in FY26 from Rs 721.04 crore in FY25. It accounted for around 96% of operating revenue, making the fall especially material for the lender’s performance. Fees and commissions also fell 21.9% to Rs 12.63 crore, while income from derecognition of loan assets dropped 53.2% to Rs 3.14 crore.

Total expenses declined 6.8% to Rs 687.69 crore in FY26 from Rs 738.19 crore in FY25. Finance costs fell 19.5% to Rs 228.88 crore, but impairment on financial instruments stayed largely flat at Rs 277.32 crore. NeoGrowth spent Rs 1.17 to earn every rupee of operating revenue in FY26, compared with Rs 0.99 a year earlier, while EBITDA margin fell to 24.33% from 40.79%.

NeoGrowth recently raised Rs 85 crore through a mix of debt and equity, led by Dutch development bank FMO, with participation from existing investor LeapFrog Investments. The company competes with MSME lenders including Lendingkart, FlexiLoans, Kinara Capital and Aye Finance. Its recovery will depend on improving revenue traction and controlling credit costs without compromising portfolio quality.