Navi Technologies swings to red with Rs 126 Cr loss in FY25

Navi Technologies, a fintech unicorn founded by Sachin Bansal, reported steady growth in the fiscal year ending March 2025 but lost profitability during the same period, largely due to a sharp decline in other income and regulatory restrictions on its lending arm.

Navi’s revenue from operations grew by 18% year-on-year to Rs 2,565 crore in FY25 from Rs 2,180 crore in FY24, according to its consolidated financial statements sourced from the Registrar of Companies (RoC).

The company provides personal and home loans, bill payments, insurance, digital gold, and mutual funds. Interest income accounted for 85% of Navi’s total revenue which grew by 21% to Rs 2,178 crore in FY25.

Fees, commissions, and other allied services contributed Rs 127 crore, the firm added additional Rs 124 crore from non-operating income, which took its total income to Rs 2,689 crore in FY25. The other income declined sharply from Rs 614 crore in FY24, primarily because the company had recorded gains from the sale of a subsidiary in the previous fiscal year.

Finance cost remained the largest expense for the lending company which rose 21% to Rs 850 crore in FY25 from Rs 705 crore in FY24. Impairment on financial instruments increased 17% to Rs 578 crore, while employee benefit expenses grew 17% to Rs 546 crore in FY25.

On the other hand, advertising expenses declined 24% to Rs 198 crore and IT expenses dropped 11% to Rs 143 crore. Overall, the company’s total expenses rose 10% to Rs 2,730 crore in FY25 from Rs 2,491 crore in FY24.

With growing expenses and sharp fall in other income resulted in a loss for the company for the last fiscal year. Navi posted a loss of Rs 126 crore in FY25, as compared to a loss of Rs 358.5 crore in FY25. Its ROCE and EBITDA margin stood at 8.90% and 28.97% respectively for the period.

On a unit basis, the company spent Rs 1.06 to earn a rupee of operating revenue during the fiscal year. Navi recorded cash and bank balances of Rs 1,369 crore, while its current assets stood at Rs 7,811.5 crore in FY25.

Navi’s lending operations faced a temporary hurdle in FY25 due to regulatory action. In October 2024, the Reserve Bank of India (RBI) instructed Navi Finserv, along with three other NBFCs, to halt the sanctioning and disbursement of new loans due to concerns related to pricing policies and regulatory compliance. 

The restrictions were lifted in December after the company addressed the deficiencies and implemented revised systems to comply with regulatory guidelines, allowing it to resume lending operations.

Navi has raised around $445 million of funding till date, having Gaja Capital as one of its lead investors. Navi competes with the likes of Finnable, Fibe, FamApp and Paytm among several others.