India, Oct. 31 -- Indifi Capital, the NBFC arm of MSME-focussed lendingtech startup Indifi Technologies, reported a net loss of INR 8 Cr in the first quarter of FY26 (Q1 FY26), up 5.7X from INR 1.4 Cr in the same period of previous fiscal year.

However, according to a report by India Ratings & Research (Ind-Ra), the NBFC arm expects to return to profitability in the second quarter of FY26 as it continues to strengthen asset quality and expand secured lending.

In Q1 FY26, Indifi Capital's credit cost dropped to 3.5% of assets under management (AUM) from 5% in Q1 FY25. It stood at 6.5% in FY25.

Meanwhile, the NBFC's gross non-performing assets (GNPA) rose to 4.6% at the end of Q1 FY26 from 3.7% a year ago. GNPA stood at 4.4% in FY25 and ...