Mumbai, Sep 15: Navi Finserv Limited has received a CARE A+; Stable rating from CARE Ratings across its long-term bank facilities and debt instruments. CARE Ratings has also upgraded the rating on Navi Finserv’s Commercial Paper to CARE A1+ from CARE A1.
The ratings reflect the significant improvement in Navi Finserv’s profitability, improved asset quality, meaningful scale of Navi Group’s digital business, supported by adequate capitalisation and diversified resource profile. CARE Ratings also recognised Navi’s scalable, technology-led business model and integrated financial services ecosystem spanning lending (through Navi Finserv Limited), UPI, insurance and asset management.
Navi Finserv’s profitability has strengthened considerably over the past few quarters. Profit after tax increased from ₹75 crore in Q3FY26 to ₹135 crore in Q4FY26 and further to ₹199 crore in Q1FY27. At the consolidated level, Navi Limited achieved profit before tax break even in Q4FY26 and reported ₹104 crore in PBT in Q1FY27.
Navi Finserv has also demonstrated strong operating performance, with loan disbursements increasing approximately 73% year-on-year in FY26. Assets under management stood at ₹23,440 crore as of June 30, 2026, up from ₹19,740 crore as of March 31, 2026.
Alongside growth, asset quality indicators have improved supported by strengthening underwriting practices, tighter approval filters and granular cohort level monitoring. Navi Finserv’s credit costs declined to 2.23% in FY26. As of June 30, 2026, the company maintained a capital adequacy ratio of 24.26%.
Navi Finserv also has a diversified resource profile, with access to more than 70 institutional lenders, including banks, mutual funds and other investors. Its borrowings include debentures, term loans, pass-through certificates, commercial paper, co-lending and direct assignment.
CARE Ratings further recognised Navi’s technology-led business model, including its in-house technology infrastructure, data analytics and efficient underwriting systems. The Navi app supports the end-to-end lending origination, enabling efficient customer acquisition, underwriting and disbursement. CARE also highlighted the role of Navi’s UPI platform in lowering customer acquisition costs and cross-selling across its financial services businesses.
The rating action follows a period of focused execution by Navi Finserv to build a more sustainable lending business, with emphasis on profitability, credit discipline, technology-led efficiencies and a diversified funding base.