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    Paisalo Digital

    PAISALO
    Financial Services·11 May 2026
    Management Summary

    Paisalo Digital reported a strong Q4 FY26, with Assets Under Management growing 17% year-on-year to ₹61,009 million and quarterly profit after tax increasing 56% to ₹722 million. Full year PAT reached ₹2,372 million. The company maintained healthy asset quality with GNPA at 0.76% and NNPA at 0.61%, while moderating its cost of borrowing to 10.22%. Strategic investments in distribution, technology, and liability management are yielding operating leverage, with a 3% reduction in headcount despite AUM growth.

    Highlights

    5

    • Assets Under Management increased to Rs.61,009 million, registering 17% year-on-year growth.

    • Reported highest-ever quarterly profit after tax of Rs.722 million in Q4 FY26, up by 56% year-on-year.

    • Full year cumulative profit after tax of 2,372 million for FY26.

    • Asset quality remained healthy and stable during the quarter, with GNPA and NNPA improving to 0.76% and 0.61% respectively.

    • Cost of borrowing moderated to 10.22%, reflecting continued progress in liability optimization and funding diversification.

    Concerns

    1

    • The LCC segment may face some kind of difficulty in this quarter in comparison to the previous quarter, but that will totally depend on how the situation prevails from an insurance and credit movement point of view, nothing for us to get affected by.

    Key financials

    Metrics

    9

    Periods

    2

    Headline

    6
    • AUM
      ₹61,009 Cr
      YoY+17%
    • GNPA
      76%
    • NNPA
      61%
    • RoE
      13.2%
    • RoA
      3.8%

    Q4

    3
    • PAT
      ₹722 Cr
      YoY+56.0%
    • Total Income
      ₹2,609 Cr
      YoY+35%
    • NII
      ₹1,733 Cr
      YoY+61%

    Capital allocation

    1
    CategoryHeadline
    Liquidity

    Liquidity disclosed

    Leverage continues to be prudent at a debt-to-equity ratio of 2.43x while our capital adequacy ratio stood at robust 35.8% together offering ample headroom to scale the business, strong loss absorption capacity and the resilience to pursue growth opportunity through any market cycle.

    Guidance & targets

    2
    CategoryTargetPriority
    Profitability
    Net Interest Margin (NIM)
    6.5%
    		High
    Growth
    Doubling AUM and Net Profit
    Doubling
    		High

    Co-lending with SBI (first method going live)

    within this quarter itself
    CurrentCompliance completed, awaiting to go live.
    TargetFirst co-lending method with SBI goes live.

    Why it matters

    Successful launch of co-lending partnerships is key for AUM growth and strategic expansion.

    One of the methods we are expecting it to get live within this quarter itself while the second process we are awaiting the bank's confirmation on their compliance of the RBI circular. So I am expecting that the second one also should get live in by the end of the quarter one of the new fiscal year or early next quarter.

    How to verify

    qa_highlights[topic='Update on co-lending partnership with SBI']

    Risks & concerns

    2
    RiskSeverity

    Geopolitical tensions impacting SME exports

    Analyst asked about NPA trends given war situation and SME exposure. Management acknowledged the impact on large/mid SMEs with export accounts due to Strait of Hormuz issues but stated Paisalo has no large concentrated exposure. — Analyst downplayed

    medium

    LCC segment facing difficulties

    Santanu Agarwal mentioned the LCC segment might face some difficulty in the current quarter, but clarified it would not affect Paisalo. — Management acknowledged

    low

    Q&A highlights

    6

    “We continue to say that we are going to maintain the same 6.5% sort of a NIM level even in the upcoming financial year as against the 6.83 that we are doing, so our target remains the same and we hope you overachieve the NIM in the upcoming financial year too.”

    Clarifies management's expectation for NIM, indicating a slight moderation from current levels but still aiming to exceed the target.

    asked by Sandy Mehta

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 FY26 Performance Highlights

    Paisalo Digital reported a robust Q4 FY26, with Assets Under Management (AUM) growing 17% year-on-year to ₹61,009 million. Quarterly disbursements stood at ₹13,440 million. Profit After Tax (PAT) for the quarter surged 56% year-on-year to ₹722 million, contributing to a full-year PAT of ₹2,372 million. The company achieved a Return on Equity (RoE) of 13.2% and Return on Asset (RoA) of 3.8%.

    02

    Asset Quality and Cost of Funds

    The company maintained strong asset quality, with Gross Non-Performing Assets (GNPA) at 0.76% and Net Non-Performing Assets (NNPA) at 0.61%, both showing improvement year-on-year. Collection efficiency remained high at 98.5%. The cost of borrowing moderated to 10.22% in Q4 FY26, reflecting effective liability management and funding diversification. The debt-to-equity ratio stood at a prudent 2.43x, with a Capital Adequacy Ratio (CAR) of 35.8%.

    03

    Strategic Investments and Operating Leverage

    Paisalo continued its strategic investments in distribution, technology, and AI, building an integrated AI-led operating backbone. Despite expanding its branch network and achieving double-digit AUM growth, headcount was reduced by 3% during FY26, demonstrating early signs of operating leverage. In Q4, the company processed 160,000 AI-enabled loan applications and handled over 125,000 servicing cases, automating nearly 250,000 quality checks.

    04

    Distribution and Customer Reach

    The company significantly deepened its distribution architecture, adding 427 new touch points for a total of 5,299 across 22 states, including 422 branches. Its customer franchise crossed 16 million, built on three decades of consistent presence and responsible lending. Geographic AUM mix saw Maharashtra and Uttar Pradesh contributing strongly, with Delhi leading at 28.03%, Haryana at 14.94%, and Rajasthan at 13.14%.

    05

    Product Diversification & New Segments

    Paisalo is actively diversifying its portfolio, having entered six new segments: medical equipment, industrial equipment, alternative fuel, two-wheeler, Agri-equipment, and small commercial vehicles. The company established 18-20 partnerships across these segments in Q4 FY26, aiming to scale these relationships in the next fiscal year to further broaden its product mix and achieve its AUM doubling target, with MSME/SME loans accounting for 71% of the portfolio.

    06

    NIM and Growth Outlook

    Management reaffirmed its guidance to double AUM and net profit over the next three fiscal years. For Net Interest Margin (NIM), the company aims to maintain around 6.5% in the upcoming financial year, acknowledging the current NIM of 6.83% and hoping to overachieve the target. Co-lending partnerships, including with SBI, are progressing, with one method expected to go live this quarter and another by early next fiscal year, contributing to future growth.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.