What is InCred Holdings Limited and what is its history?

INCRED HOLDINGS LIMITED is a Public Limited Company, Maharashtra-incorporated 2011. The legal entity was originally KKR Capital Markets India Private Limited and was rebranded/renamed to InCred Holdings Limited; the FY25 audit financial filings are under the renamed entity. The consolidated group includes the InCred Finance lending business and other group subsidiaries. The audit framework is Ind AS. The legal entity is now the holding parent of the InCred Group.

Did InCred's revenue grow in FY2025?

Yes, materially. Consolidated revenue from operations grew 47% from ₹1,272.70 Cr (FY24) to ₹1,873.62 Cr (FY25). Consolidated total income (including ₹20.15 Cr of other income) was ₹1,893.77 Cr.

How profitable is InCred?

Consolidated PAT in FY25 was ₹373.15 Cr (FY24: ₹309.04 Cr, up 21%). Pre-tax profit was ₹507.40 Cr (FY24: ₹399.54 Cr, up 27%). The pre-tax improvement is larger than the post-tax improvement primarily because the deferred-tax expense grew (₹126 Cr in FY25 vs ₹83 Cr in FY24). The composition is: revenue growth (+47%) ran ahead of profit growth (+21%) because expense growth was even faster (+58%); net margin compressed even as absolute profit grew.

Why did borrowings expand by ₹3,341 Cr?

Consolidated borrowings (current) grew from ₹5,017.15 Cr at March 2024 to ₹8,358.51 Cr at March 2025, an expansion of ₹3,341 Cr (+67%). For an NBFC, borrowings expansion is typically funded loan-book growth: cash raised through borrowings is deployed as loans to customers. Under Ind AS, loans extended count as operating outflows, which is why the consolidated operating cash flow line shows -₹2,816 Cr against a ₹373 Cr PAT. The audit's loans note details the loan-book composition; this article does not reproduce that schedule.

Why is the operating cash flow so negative?

Consolidated OCF was -₹2,815.75 Cr in FY25 (FY24: -₹1,372.56 Cr). For an Ind AS NBFC, this is the typical OCF profile during loan-book expansion: PAT is positive (the loans generate interest income that flows through to profit), but the loans extended count as operating outflows in the cash-flow statement (the borrower receives cash; the NBFC's cash is reduced). The OCF mirrors the loan-book expansion in direction and roughly in magnitude. A more accurate operating-cash measure for an NBFC is PAT plus depreciation plus impairment, which the audit's notes detail; this article reports the headline OCF figure as recognised.

What is the standalone vs consolidated split?

Standalone revenue ₹4.08 Cr (mostly dividend/investment income at the holding entity). Standalone PAT +₹0.63 Cr (FY24: -₹5.39 Cr, turned positive). Standalone total assets ₹3,043.85 Cr, of which ₹2,960.83 Cr is non-current investments in subsidiaries (the holding stake at cost). Standalone net worth ₹3,039.40 Cr. Consolidated total assets ₹12,500.53 Cr; consolidated revenue ₹1,873.62 Cr. The standalone is the holding entity itself; the operating business runs in the subsidiaries that the consolidated audit rolls up.

What is the tax-line composition?

Total consolidated tax expense was ₹134.25 Cr in FY25 (FY24: ₹90.50 Cr). Composition: current tax ₹8.61 Cr; deferred tax ₹125.65 Cr. Deferred tax accounts for approximately 94% of the total tax expense. The dominance of deferred tax indicates that accounting profits and taxable profits diverge meaningfully for InCred's business; the tax-reconciliation note in the audit details the timing differences and unrecognised deferred tax items giving rise to this composition. The current-tax outflow (₹8.61 Cr) is small in absolute terms against the ₹507 Cr pre-tax profit.

InCred Holdings (Formerly KKR Capital Markets India) Made ₹373 Cr Profit on ₹1,874 Cr Revenue.

Q: What about credit quality?

This article focuses on the headline P&L and balance-sheet movement. The asset-side credit-quality picture for an Ind AS NBFC sits in the loan-book notes: gross loans by stage (Stage 1 with 12-month ECL, Stage 2 with lifetime ECL not credit-impaired, Stage 3 with lifetime ECL credit-impaired), the corresponding ECL allowance against each stage, year-on-year movement in Stage 3 balances, write-off ratio, and provision coverage on Stage 3 exposures. Those disclosures are in the consolidated audit's notes; this article does not surface them. Without that staging context, the article cannot assess whether the operating performance reflects sustainable credit quality across the loan book.

What the numbers actually say25 metrics

Metric	Reported(Narrative)	Economic Reality
Consolidated Revenue (FY25)	₹1,873.62 Cr	up 47% from ₹1,272.70 Cr
Consolidated Other Income	₹20.15 Cr	from ₹23.43 Cr
Consolidated Total Income	₹1,893.77 Cr	from ₹1,296.13 Cr
Finance Costs	₹627.17 Cr	up 38% from ₹453.26 Cr
Employee Benefits	₹339.31 Cr	up 28% from ₹264.58 Cr
Depreciation & Amortisation	₹18.32 Cr	flat from ₹18.70 Cr
Total Expenses	₹1,386.37 Cr	up 58% from ₹876.48 Cr
Pre-Tax Profit (Consolidated)	₹507.40 Cr	up 27% from ₹399.54 Cr
Current Tax	₹8.61 Cr	from ₹7.55 Cr
Deferred Tax	₹125.65 Cr	from ₹82.95 Cr
Total Tax Expense	₹134.25 Cr	from ₹90.50 Cr
Profit After Tax (Consolidated)	₹373.15 Cr	up 21% from ₹309.04 Cr
Total Assets (Consolidated)	₹12,500.53 Cr	up 43% from ₹8,767.62 Cr
Cash and Equivalents	₹669.37 Cr	8x from ₹84.97 Cr
Current Investments	₹515.12 Cr	from ₹612.67 Cr
Borrowings (Current)	₹8,358.51 Cr	up 67% from ₹5,017.15 Cr; +₹3,341 Cr
Equity Share Capital	₹647.52 Cr	from ₹641.82 Cr
Other Equity (Consolidated)	₹3,155.75 Cr	from ₹2,744.96 Cr
Total Equity (Consolidated)	₹3,803.27 Cr	up 12% from ₹3,386.78 Cr
Operating Cash Flow	-₹2,815.75 Cr	from -₹1,372.56 Cr
Goodwill (Consolidated)	₹66.46 Cr	flat YoY
Standalone Revenue	₹4.08 Cr	from ₹4.21 Cr
Standalone PAT	+₹0.63 Cr	from -₹5.39 Cr
Standalone Investment in Subsidiaries	₹2,960.83 Cr	carried at cost
Standalone Net Worth	₹3,039.40 Cr	from ₹2,985.46 Cr

The 30-Second Summary

InCred Holdings Limited's FY25 consolidated audit records a profitable, growing NBFC group. The legal entity was formerly KKR Capital Markets India Private Limited; the FY25 filings are under the renamed entity.

Consolidated revenue +47% to ₹1,874 Cr. From ₹1,273 Cr in FY24.
Consolidated PAT +21% to ₹373 Cr. From ₹309 Cr in FY24. Profit growth ran below revenue growth because total expenses grew faster (+58%).
Balance sheet +43% to ₹12,500 Cr. Borrowings expanded ₹3,341 Cr (+67%) to ₹8,359 Cr. Cash position grew 8x to ₹669 Cr.
Operating cash flow -₹2,816 Cr. Standard for an Indian Accounting Standards (Ind AS) NBFC during loan-book expansion: loans extended count as operating outflows.
Standalone is a holding entity. Standalone revenue only ₹4.08 Cr; ₹2,961 Cr of investments in subsidiaries at cost. The operating business runs in the consolidated group.

Quick glossary

P&L: Profit and Loss statement, the income statement for the year.
NBFC: Non-Banking Financial Company, RBI-registered entity that provides loans and credit but is not a scheduled commercial bank.
OCF: Operating Cash Flow, cash generated from running the business. For an Ind AS NBFC during loan-book expansion, OCF is typically negative because loans extended count as operating outflows (the NBFC's cash leaves; the borrower receives it).
Standalone vs Consolidated: Two audited views from the same filing, standalone reports the legal entity's own transactions only. For a holding company, the standalone is small relative to the consolidated, because the operating business sits in subsidiaries that the consolidated audit rolls up.
Deferred tax: Tax on timing differences between accounting and taxable profit, for an NBFC, deferred-tax movements can materially affect the tax line under Ind AS 109 (ECL provisions, unabsorbed losses, and other timing items flow through P&L differently from how they flow through taxable income). Whether deferred tax dominates the total tax expense depends on the specific entity's ECL pattern, write-off cycle, and unrecognised deferred-tax position.

What This Audit Captures

Legal entity: InCred Holdings Limited, Maharashtra-incorporated 2011 as KKR Capital Markets India Private Limited. The legal entity has been rebranded/renamed to InCred Holdings Limited; the FY25 financial filings carry the renamed entity.
Audit framework: Ind AS, NBFC-specific reporting framework (the consolidated entity is the holding parent of an NBFC group).
Group structure: holding entity plus operating subsidiaries. The consolidated balance sheet is ₹12,500 Cr versus standalone ₹3,044 Cr; the operating business sits in subsidiaries.
What the standalone captures: parent-entity revenue (₹4.08 Cr, mostly dividend or investment income from subsidiaries); parent-entity costs (₹4.36 Cr); investment in subsidiaries at cost (₹2,960.83 Cr); parent cash, current investments, and any direct receivables.
What the consolidated captures: parent plus all subsidiaries with intercompany transactions eliminated. The lending business, the ₹8,358 Cr of borrowings, the ₹373 Cr of PAT, and the ₹66 Cr of goodwill from prior acquisitions all live at the consolidated layer.

The core insight

A holding entity with ₹3,000 Cr of investments in subsidiaries on its books. The operating business is the consolidated group; the standalone is the parent that owns it.

The Operating Business at Consolidated Level

Consolidated P&L, FY2024 → FY2025Group view

Revenue from Operations

₹1,273 → ₹1,874 Cr

+47%; substantial growth

Finance Costs

₹453 → ₹627 Cr

+38%; debt-side cost rising in line with borrowings

Employee Benefits

₹265 → ₹339 Cr

+28%; below revenue growth

Total Expenses

₹876 → ₹1,386 Cr

+58%; ran ahead of revenue growth

Pre-Tax Profit

₹400 → ₹507 Cr

+27%; improvement of ₹108 Cr

PAT

₹309 → ₹373 Cr

+21%; improvement of ₹64 Cr

The arithmetic: revenue grew ₹601 Cr; total expenses grew ₹510 Cr; pre-tax profit improved ₹108 Cr; the difference between ₹108 Cr and ₹64 Cr (PAT improvement) is the ₹43 Cr increase in tax expense.

Revenue growth (+47%) is the larger movement. Expense growth (+58%) ran faster. The net margin compressed in percentage terms even as absolute profit grew. The composition that produced this:

Finance costs +₹174 Cr (+38%). Bank term loans drove the bulk (interest on non-current bank loans: ₹330 Cr → ₹467 Cr, +₹137 Cr). Debt securities interest grew from ₹98 Cr to ₹116 Cr (+₹18 Cr). The borrowings grew 67% while finance costs grew 38%, indicating an average lower effective rate on the FY25 borrowings additions than the previous portfolio; the composition shift toward bank term loans (versus higher-cost NCDs) is consistent with this direction.
Impairment loss on loans +₹206 Cr. From a -₹19 Cr reversal in FY24 to a +₹187 Cr provisioning expense in FY25. This is the second-largest expense movement after finance costs. ECL provisioning intensity is approximately 1.8% of the average gross loan book, consistent with a growing book recognising fresh Stage 1 ECL plus any stage migration on existing exposures.
Employee benefits +28%. Below revenue growth, contributing to operating leverage at the human-capital line.
Other operating expenses. The audit's expense breakdown contains the residual; this article does not reproduce that line-item decomposition.

The pre-tax profit improvement of ₹108 Cr came against this composition: revenue scaling brought ₹601 Cr in additional top-line; provisioning intensity rose ₹206 Cr; finance costs rose ₹174 Cr; employee and other lines added the remaining ₹130 Cr. The marginal margin on incremental revenue (the ₹108 Cr pre-tax profit improvement divided by ₹601 Cr of revenue growth) was approximately 18%. This is the operating-leverage signal at the current scale; whether it holds depends on the future trajectory of the impairment-on-loans line, which the audit does not extrapolate.

→ The P&L impairment line

₹187 Cr of ECL provisioning recognised in FY25, against a -₹19 Cr reversal in FY24

The Ind AS 109 expected-credit-loss provisioning on loans and advances was ₹187 Cr in FY25, compared with a -₹19 Cr reversal in FY24 (a credit to the P&L). The year-on-year movement is a ₹206 Cr swing in the impairment line. This is the second-largest movement in the consolidated P&L after finance costs (which grew ₹174 Cr).

ECL provisioning intensity at the FY25 level represents approximately 1.8% of the average gross loan book during the year (roughly ₹8,873 Cr average between opening and closing balances). The ratio is consistent with a growing NBFC book that is recognising fresh ECL on incremental Stage 1 loans plus any stage migration on existing exposures.

This article reports the impairment magnitude as recognised. The staging detail, gross loans split between Stage 1 (12-month ECL), Stage 2 (lifetime ECL not credit-impaired), Stage 3 (lifetime ECL credit-impaired); the ECL allowance against each stage; year-on-year movement in Stage 3 balances; write-off ratio; and provision coverage on Stage 3 exposures, sits in the consolidated audit's loan-book notes. The article does not reproduce that decomposition. Without the staging context, the article cannot fully assess whether the ECL line composition reflects book aging in a normal direction or stage-migration pressure that future periods may compound.

The Balance Sheet Expansion

Consolidated balance sheet, FY2024 → FY2025Asset and funding side

Total Assets

₹8,768 → ₹12,500 Cr

+43%; ₹3,733 Cr expansion

Cash and Equivalents

₹85 → ₹669 Cr

8x; cash buffer materially expanded

Current Investments

₹613 → ₹515 Cr

treasury holdings

Borrowings (Current)

₹5,017 → ₹8,359 Cr

+67%; ₹3,341 Cr expansion

Total Equity

₹3,387 → ₹3,803 Cr

+12%; PAT-driven net of statutory transfers

Goodwill

₹66.46 Cr

flat both years; small acquired-entity premium

→ The funding-and-deployment arithmetic

Loan book +₹3,228 Cr; borrowings +₹3,341 Cr; cash buffer +₹584 Cr

The consolidated balance-sheet movement breaks down cleanly:

Loans (current) grew ₹3,228 Cr (₹7,259 Cr → ₹10,487 Cr). This is the largest single asset-side movement and almost entirely accounts for the operating-cash absorption of -₹2,816 Cr.
Borrowings (current) grew ₹3,341 Cr (₹5,017 Cr → ₹8,359 Cr). Funded the loan-book expansion approximately rupee-for-rupee.
Cash and equivalents grew ₹584 Cr (₹85 Cr → ₹669 Cr). A meaningful buffer build above and beyond loan-book funding.
Equity built ₹416 Cr through retained earnings (PAT ₹373 Cr plus minor share-capital and OCI movements net of statutory reserve transfers).
Margin money held with banks as security against borrowings or guarantees: ₹130 Cr (FY24: ₹61 Cr). The increase reflects collateral requirements scaling with the borrowings base.

The composition of the borrowings expansion, inferred from interest-expense disclosure: bank term loans dominate (₹467 Cr of FY25 finance costs on non-current bank loans, suggesting roughly ₹4,500-5,000 Cr in bank lines at typical NBFC rates), with debt securities (NCDs and similar instruments) at ₹116 Cr of interest expense suggesting roughly ₹1,000-1,200 Cr in NCDs. Current borrowings contribute ₹17 Cr of interest. The audit's borrowings-note disclosures contain the exact rate-and-instrument breakdown; the article reports the composition direction inferred from interest-expense ratios.

The accounting symmetry for an NBFC during book expansion: loans extended count as operating outflows under Ind AS; borrowings raised to fund them flow through financing activities as inflows. The two are mirror images at scale, which is why the consolidated OCF of -₹2,816 Cr broadly tracks the loan-book expansion of ₹3,228 Cr. The filing does not indicate covenant stress or restructuring pressure at the borrowings level; the borrowings expansion occurred alongside the loan-book expansion as the funding side of the same operating activity.

What FY25 records on the operating side

Consolidated revenue +47% to ₹1,874 Cr. PAT +21% to ₹373 Cr. Total expenses grew faster (+58%); net margin compressed in percentage terms even as absolute profit grew.

What FY25 records on the balance-sheet side

Total assets +43% to ₹12,500 Cr. Borrowings +67% to ₹8,359 Cr. Cash +8x to ₹669 Cr. Equity +12% to ₹3,803 Cr. Operating cash flow -₹2,816 Cr, mirroring the loan-book expansion.

“₹1,874 Cr revenue. ₹373 Cr profit. ₹12,500 Cr balance sheet. The legal entity was KKR Capital Markets India four years ago. It is InCred Holdings Limited now.”
UnpopularVoice editorial read