Digital lending startup Fibe, formerly Early Salary, posted a consolidated net profit of ₹257.5 crore in FY26, more than doubling its profit from the previous year, driven by significant growth in lending operations and diversified revenue streams ahead of its planned IPO.
- FY26 net profit surged 126% to ₹257.5 crore
- Total loans increased 64% to ₹5,020 crore
- IPO plans include fresh equity and offer-for-sale
What happened
Fibe, a digital lending startup in India, announced its most profitable year in FY26 with a consolidated net income of ₹257.5 crore, marking a 126% jump compared to FY25. Its operating revenue also rose sharply by 31% to ₹1,584.5 crore, supported by a significant expansion in the lending portfolio and multiple income streams beyond interest.
The company recently filed its draft red herring prospectus with SEBI as it prepares for an initial public offering. The IPO plans include issuing fresh shares worth up to ₹750 crore alongside an offer-for-sale by existing investors. Proceeds from the fresh issue will primarily be invested in scaling its NBFC subsidiary to bolster lending capabilities.
Why it matters
Fibe’s financial performance highlights the strength of its diversified business model, which integrates originating loans, holding them on its balance sheet, and generating fees via partnerships. Interest income, accounting for nearly 65% of revenue, grew 33%, while non-interest income such as guarantee premiums and commissions also contributed substantially, giving the company a resilient revenue mix.
The impressive increase in profit margins from 9.4% to 16.3% in FY26 underscores improved operational efficiency despite rising expenses. However, credit risk remains a critical challenge, with ₹420 crore set aside for expected credit losses, reflecting ongoing portfolio risk management amid rapid growth.
What to watch next
Market watchers will focus on the successful execution of Fibe’s IPO, which aims to attract capital to deepen its NBFC lending activities and expand financial product offerings. The infusion of fresh funds will be critical for sustaining growth and managing credit risks effectively.
Post-IPO, investor attention will turn to how well Fibe balances scaling its loan book while maintaining credit quality. Additionally, monitoring the evolution of non-interest revenues and cost controls will provide insight into the company’s ability to sustain profitability in India’s competitive digital lending market.