Fintech firm Sachin Bansal-led Navi Technologies reported a net loss of ₹126 crore in FY25, slipping into the red despite posting steady revenue growth during the fiscal year. The decline in profitability was mainly driven by a sharp fall in other income and rising operating costs.

Key Highlights

• Sachin Bansal-led Navi Technologies reports ₹126 crore loss in FY25 despite steady revenue growth.
• Higher finance costs and decline in other income impacted profitability during the financial year.

According to the company’s financial filings, revenue from operations rose 18% year-on-year to ₹2,565 crore in FY25, up from ₹2,180 crore in FY24. Interest income remained the largest contributor, accounting for around 85% of total revenue, and increased 21% to ₹2,178 crore during the year.

Navi also generated ₹127 crore from fees, commissions, and related services, while non-operating income contributed ₹124 crore, taking the company’s total income to ₹2,689 crore in FY25.

A key factor behind the loss was the steep decline in other income, which had been unusually high in FY24 due to gains from the sale of a subsidiary. As this one-time income did not recur in FY25, overall profitability took a hit.

Expenses rise across key segments

The fintech lender also reported rising expenses during the year:

• Finance costs: Increased 21% to ₹850 crore from ₹705 crore in FY24.
• Impairment on financial instruments: Rose 17% to ₹578 crore.
• Employee benefit expenses: Climbed 17% to ₹546 crore.

Despite cost pressures, the company reduced certain discretionary spending, with advertising expenses falling 24% to ₹198 crore and IT costs declining 11% to ₹143 crore. Overall expenses grew 10% to ₹2,730 crore in FY25.

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Operational efficiency and balance sheet

On a unit economics basis, Navi spent ₹1.06 to earn every ₹1 of operating revenue, indicating profitability pressure during the year. The company reported cash and bank balances of ₹1,369 crore, while its current assets stood at ₹7,811.5 crore at the end of FY25.

Founded by Sachin Bansal, Navi Technologies operates a digital financial services platform offering personal loans, home loans, insurance, mutual funds, digital gold investments, and bill payment services through its mobile app. The company has been expanding its lending and financial services ecosystem in India’s rapidly growing fintech market.

While Navi’s revenue growth reflects continued demand for its lending and financial products, the FY25 loss highlights the impact of higher funding costs and reduced non-operating income. Analysts say the company’s profitability in the coming years will depend on improving lending margins, controlling credit costs, and scaling its fintech platform efficiently.