Paisalo Digital Limited reported a 128% year-on-year surge in disbursements to ₹17,309 Mn for the quarter ended June 30, 2026, signaling strong credit demand among SMEs and micro-enterprises. This volume growth propelled Assets Under Management (AUM) up 28% to ₹67,074 Mn, while Profit After Tax (PAT) rose 30% to ₹613 Mn. The results highlight the company’s ability to scale operations through AI-driven efficiencies while maintaining stable asset quality and reducing borrowing costs by 64 basis points year-on-year.

The filing was submitted under Regulation 30 of the SEBI (LODR) Regulations, 2015, on August 5, 2026. Santanu Agarwal, Deputy Managing Director of Paisalo Digital, attributed the performance to the company’s deepening reach in underserved markets and the integration of AI capabilities to improve productivity and decision-making.

Financial Performance Highlights

Total income increased 19% year-on-year to ₹2,603 Mn, supported by a 16% rise in Net Interest Income to ₹1,447 Mn. Despite the revenue growth, PAT declined 15% quarter-on-quarter from ₹722 Mn in Q4FY26 to ₹613 Mn in Q1FY27. The company maintained a Return on Assets (RoA) of 3.6% and Return on Equity (RoE) of 13.4%.

Asset Quality and Liability Management

Asset quality remained robust with Gross Non-Performing Assets (GNPA) improving by 14 basis points to 0.70% and Net Non-Performing Assets (NNPA) down 19 basis points to 0.49% compared to Q1FY26. The Capital Adequacy Ratio stood at 33.1%, with Tier 1 capital at 26.8%. Total borrowings were ₹48,467 Mn as of June 2026, with the cost of borrowing decreasing to 10.1% from 10.7% in the previous year.

Operational Scale and AI Integration

Paisalo Digital expanded its distribution network to 5,995 touchpoints, adding 696 new locations during the quarter. The customer base grew to approximately 18 Mn, with 1.8 Mn new additions in Q1FY27. The company processed 180,000 applications and handled 500,000 voice data conversions, leveraging 18 live AI bots and 200,000 daily AI-driven outbound calls to enhance engagement.

What the Numbers Show

The divergence between the 128% surge in disbursements and the 19% growth in total income suggests that the new loans originated in Q1FY27 have not yet fully contributed to interest accruals, which is typical for NBFCs with short-term lending products. However, the simultaneous improvement in GNPA and reduction in borrowing costs indicates that the company is scaling efficiently without compromising on risk management or funding stability.

Paisalo Digital Limited has confirmed that its listed Non-Convertible Debentures (NCDs) remain fully secured as per regulatory requirements for the quarter ended June 30, 2026. Statutory auditors Saket Jain & Co. certified that the company maintained the minimum security cover mandated by the Securities and Exchange Board of India (SEBI) and the terms of the Debenture Trust Deed. The filing, submitted to the Bombay Stock Exchange on August 5, 2026, assures investors that the debt instruments are backed by sufficient asset coverage, mitigating default risk for bondholders.

The compliance declaration was issued pursuant to Regulation 54(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Manendra Singh, Company Secretary at Paisalo Digital Limited , signed the submission, which includes the auditor’s report and the detailed statement of security cover. The audit was conducted in accordance with the Guidance Note on Reports or Certificates for Special Purposes issued by the Institute of Chartered Accountants of India (ICAI).

Security Cover Metrics

The auditors examined the company’s assets and liabilities to determine the adequacy of the security cover. The primary metric used is the Exclusive Security Cover Ratio, which compares the value of assets charged exclusively to the debentures against the outstanding debt. As of June 30, 2026, Paisalo Digital reported a cover ratio well above the minimum threshold.

The data indicates that for every ₹1 of debt secured by an exclusive charge, the company holds ₹1.20 in book value and ₹1.29 in market value of corresponding assets. This buffer provides a margin of safety for investors in the event of asset liquidation.

Asset Composition

The security cover is primarily derived from loans receivable, which constitute a significant portion of the company’s balance sheet. As a non-banking financial company (NBFC), Paisalo Digital treats its stock (loans) as cash items, valued at cost or market whichever is lower. The auditors noted that the market value of these loans equals the principal amount outstanding, ensuring accurate valuation for security purposes.

Key assets contributing to the total book value of ₹6,780.04 crore include:

• Loans: ₹6,413.76 crore
• Investments: ₹143.11 crore
• Property, Plant and Equipment: ₹83.78 crore
• Intangible Assets: ₹0.13 crore

Liabilities secured by these assets include debt securities totaling ₹892.93 crore, comprising ₹431.59 crore under exclusive charge and ₹378.11 crore under other secured debt categories. Subordinated debt stood at ₹240.50 crore, while borrowings were minimal at ₹1.00 crore.

What the Numbers Show

The strong security cover ratios reflect Paisalo Digital’s conservative approach to debt management. With an exclusive cover ratio of 120%, the company maintains a healthy cushion above the typical regulatory minimums often set at 100% or slightly higher depending on the specific issue terms. The alignment between book and market values for the core loan portfolio suggests stable asset quality, as there are no significant write-downs indicated in the valuation methodology. This stability is crucial for maintaining investor confidence in the company’s long-term debt instruments.