Paisalo Digital Limited reported a 30% year-on-year increase in consolidated net profit to ₹613.14 lakh for the quarter ended June 30, 2026, driven by robust growth in interest income. The digital lending firm’s consolidated revenue from operations rose 19% to ₹260.29 lakh, while standalone net profit climbed 30% to ₹608.65 lakh. The results reflect sustained demand for its lending products and effective cost management during the first quarter of FY26.

The Board of Directors approved the unaudited financial results on August 05, 2026, following a review by the Audit Committee. Statutory auditors Saket Jain & Co. issued limited review reports on both the standalone and consolidated financial statements, confirming compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The consolidated results include the performance of wholly owned subsidiary Nupur Finvest Private Limited.

Financial Performance Highlights

Consolidated interest income, the primary revenue driver, increased 25% to ₹250.52 lakh from ₹200.88 lakh in Q1FY25. Fees and commission income declined 49% to ₹8.94 lakh from ₹17.37 lakh in the prior year period. Total expenses rose 15% to ₹178.08 lakh, primarily due to higher finance costs which jumped 22% to ₹115.58 lakh. Impairment on financial instruments stood at ₹15.73 lakh, slightly lower than the ₹17.55 lakh recorded in Q1FY25.

Standalone figures mirrored the consolidated trend, with net profit rising to ₹60.86 lakh from ₹46.66 lakh. Standalone revenue reached ₹254.62 lakh, up 22% year-on-year. Earnings per share (basic and diluted) remained flat at ₹0.67 for both standalone and consolidated structures, compared to ₹0.52 in the previous year.

What the Numbers Show

The divergence between revenue growth (19%) and expense growth (15%) indicates improving operational leverage for Paisalo Digital. While finance costs increased significantly, they were outpaced by the surge in interest income, preserving the net interest margin at 6.61%. Asset quality remained strong, with gross non-performing assets (GNPA) holding steady at 0.69% and net non-performing assets (NNPA) at 0.48%, suggesting minimal credit stress despite the expansion in lending activity.

Capital Raise and Regulatory Metrics

During the quarter, the company issued commercial papers totaling ₹117 crore to fund its operations. These included issues on April 02, April 08, April 10, and May 08, 2026, with maturities ranging between 173 and 183 days. The debt-equity ratio remained stable at 2.62 times on a consolidated basis. The company maintained a current ratio of 4.42 times, indicating sufficient liquidity to meet short-term obligations. All secured non-convertible debentures are backed by exclusive charges on receivables, with requisite asset cover maintained as of June 30, 2026.

Paisalo Digital Limited has commenced its public issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs), aiming to raise up to ₹30,000 lakh through Tranche I. This issuance falls within the company’s approved shelf limit of ₹90,000 lakh and is designed to fund its lending operations by leveraging its loan receivables as security. The move allows the fintech lender to access long-term capital at defined interest rates, supporting its growth trajectory in the digital lending sector.

The Board of Directors initially approved the shelf issuance on May 10, 2026, followed by the Operations and Finance Committee’s approval of the Shelf Prospectus and Tranche I Prospectus on July 31, 2026. These documents were filed with the Registrar of Companies, NCT of Delhi – I at South Delhi, BSE Limited, and the Securities and Exchange Board of India (SEBI). The intimation was issued pursuant to Regulations 30 and 51 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Issue Structure and Timeline

The base issue size stands at ₹15,000 lakh, with an option to retain oversubscription of up to ₹15,000 lakh, bringing the total potential raise to ₹30,000 lakh. Each debenture carries a face value of ₹1,000. Investors can apply for a minimum of ₹10,000 (10 NCDs) and in multiples of ₹1,000 thereafter.

The issue remains open for subscription on working days from 10:00 a.m. to 5:00 p.m. Indian Standard Time. On the closing date, applications will be accepted until 3:00 p.m., with uploads permitted until 5:00 p.m. The company may close the issue earlier or extend it, subject to regulatory limits and board approvals.

Coupon Rates and Tenors

Paisalo Digital has structured the NCDs into six series, offering varying tenors and coupon rates to cater to different investor preferences. The coupons range from 9.00% per annum for the shortest tenor to 10.47% per annum for the longest. Interest payments are made either monthly or annually, depending on the series chosen.

Series VI is allocated to applications where no specific series choice is indicated.

Security and Listing

The NCDs are secured by an exclusive charge via hypothecation created on the company’s loan receivables. Paisalo Digital must maintain a security cover of at least 1.10 times the entire secured obligations throughout the tenure of the NCDs. The security will be created upfront before listing applications and perfected within 30 days of creation. Upon allotment, the debentures will be listed on BSE Limited, which serves as the designated stock exchange.

What the Numbers Show

The pricing structure reflects a clear risk-return gradient, with longer tenors commanding higher coupons. Series VI, the default allocation for unspecified choices, offers the highest coupon at 10.47% per annum for a 60-month tenor, indicating the company’s cost of capital for its longest-term liabilities. The effective yields are slightly higher than the stated coupons for monthly payment series due to compounding effects, while annual series show negligible differences. This structure suggests Paisalo Digital is actively managing its liability maturity profile, balancing immediate funding needs with long-term stability.