Paisalo Digital Limited has announced strong Q3FY26 financial results through its official regulatory filing under Regulation 30 of SEBI (LODR) Regulations, 2015. The digitally enabled NBFC reported Assets Under Management (AUM) growth of 16% year-over-year to ₹55,082 million and total income growth of 18% year-over-year to ₹2,401 million for the quarter ended December 31, 2025.

Financial Performance Highlights

The company achieved its highest quarterly Profit After Tax (PAT) of ₹663 million, marking a 6% year-over-year increase. Net Interest Income grew by 19% year-over-year from ₹1,217 million to ₹1,453 million, while maintaining a steady Net Interest Margin (NIM) of 6.6%.

Asset Quality and Operational Metrics

Paisalo Digital maintained healthy asset quality with Gross Non-Performing Assets (GNPA) at 0.83% and Net Non-Performing Assets (NNPA) at 0.66%. Collection efficiency for the quarter stood at 98.8%, reflecting strong operational performance. The company expanded its customer franchise to a record ~14 million, adding ~1.6 million customers during the quarter.

Capital Position and Cost Management

The company's financial foundation remains robust with a Capital Adequacy Ratio of 38.3% and Tier 1 capital at 30.7%. Net Worth grew by 18% year-over-year to ₹17,404 million. Cost of borrowing improved significantly to 10.3%, down 92 basis points from 11.3% in Q3FY25, reflecting effective refinancing strategies. Return on Assets (ROA) stood at 3.8% while Return on Equity (ROE) reached 12.6%. Total borrowings stood at ₹38,579 million as of December 2025.

Business Expansion and AI Transformation

During the quarter, Paisalo Digital broadened its reach by adding 492 new touchpoints, bringing the total to 4,872 across 22 states. Disbursements rose 7% year-over-year to ₹10,574 million, reflecting sustained credit demand. The company raised ₹1,885 million at an 8.5% cost of funds, optimizing its liability profile to support capital-efficient growth.

Q3FY26 Earnings Call Details

Following the announcement of quarterly results, Paisalo Digital conducted its Q3FY26 earnings call on February 9, 2026. The company has made the audio recording of the earnings call available on its website for stakeholders and investors. The presentation materials were disclosed to the exchanges on the same date, providing comprehensive insights into the company's quarterly performance and strategic outlook.

Management Commentary

Commenting on the performance, Mr. Santanu Agarwal, Deputy Managing Director, highlighted the favorable macro environment created by India-US trade engagement and Union Budget 2026 policy support for MSMEs. He emphasized Paisalo's transformational journey to become an AI-first franchise, integrating advanced data ecosystems and automated workflows across its lending and operations platform to drive sustainable, tech-led growth.

Paisalo Digital has executed a strategic debt management initiative by redeeming ₹1.00 crore worth of unlisted, unsecured redeemable non-convertible debentures (NCDs) seven years ahead of their scheduled maturity. The company exercised a call option to partially redeem 10 NCDs under Series PDL-09-2023, which were originally set to mature on September 2, 2033.

Debt Redemption Details

The partial redemption represents a proactive approach to balance sheet optimization. The company has formally notified both the National Stock Exchange of India Limited and BSE Limited about this transaction for record-keeping and informational purposes.

Recent Capital Raising Activities

Paisalo Digital successfully completed public issuances in Q3, raising ₹188.50 crores at an annual return on investment of 8.50%. This capital infusion is expected to significantly reduce the company's cost of funds while enhancing its lending capabilities and strengthening its medium-term capital foundation.

The raised funds will support the company's High Tech-High Touch distribution strategy and facilitate pan-Indian expansion across 22 states and union territories. Additionally, the capital will accelerate the launch of new lending products targeting micro-entrepreneurs, self-employed borrowers, and underserved income segments.

Shareholding and Market Performance

SBI Life Insurance maintains a significant stake in the company, holding 6,21,14,267 shares representing approximately 6.83% of total voting rights as of the December quarter. The company's market capitalization stands at approximately ₹2,981.00 crores with a trailing price-to-earnings ratio of 14.18.

Company Background

Paisalo Digital Limited was originally incorporated as SE Investment Limited on March 5, 1992, and was renamed to its current identity on January 12, 2018. The company operates as a Non-Banking Financial Company (NBFC) specializing in providing small funding facilities to microbusinesses and financially disadvantaged individuals across India.