Paisalo Digital Reports Strong Q2 Results with 20% AUM Growth and Robust Asset Quality

Paisalo Digital , a leading digitally-enabled NBFC, has announced its financial results for the quarter ended September 30, showcasing robust growth and operational resilience.

Key Financial Highlights

Assets Under Management (AUM) grew by 20% year-over-year to Rs 54,494.00 million
Disbursements surged 41% YoY to Rs 11,025.00 million
Total income increased by 20% YoY to Rs 2,240.00 million
Net Interest Income rose by 15% YoY to Rs 1,262.00 million
Profit After Tax (PAT) grew by 3% YoY to Rs 515.00 million

Operational Performance

Paisalo Digital continued to expand its reach and customer base during the quarter:

Customer franchise expanded to approximately 13 million, with the addition of 1.8 million customers
Total touchpoints increased to 4,380 across 22 states, comprising 402 branches, 2,585 distribution points, and 1,393 Business Correspondents
Collection efficiency remained strong at 98.4%

Asset Quality and Capital Adequacy

The company maintained robust asset quality metrics:

Gross Non-Performing Assets (GNPA) stood at 0.81%, down from 0.86% in the same quarter of the previous year
Net Non-Performing Assets (NNPA) were at 0.65%, slightly up from 0.61% in the same period last year
Capital Adequacy Ratio remained strong at 38.2%, with Tier 1 capital at 30.3%

Strategic Developments

Paisalo Digital made significant strides in strengthening its capital structure:

Converted USD 4.00 million of its USD 50.00 million Foreign Currency Convertible Bonds (FCCBs) into share capital
Expanded paid-up equity capital from Rs 90.21 crore to Rs 90.95 crore
Promoters increased their stake to 41.2%, up by 4.1%, signaling strong long-term commitment

Management Commentary

Mr. Santanu Agarwal, Deputy Managing Director of Paisalo Digital Ltd, commented on the results: "Q2 demonstrated disciplined growth and consistent execution. Our customer base surpassed the significant milestone of ~13 million, with nearly 1.8 million new customers added during the quarter, underscoring the strong traction of our inclusive last-mile credit model. With a reinforced balance sheet and a scalable omnichannel platform, Paisalo is well-positioned for sustainable growth and to expand equitable credit access in the quarters ahead."

Outlook

Paisalo Digital's focus on technology-driven financial inclusion, coupled with its expanding geographic footprint and robust asset quality, positions the company for continued growth. The strategic conversion of FCCBs and increased promoter stake further strengthen the company's capital base, supporting its expansion plans in the underserved and emerging MSME/SME segments.

As Paisalo Digital continues to leverage its high-tech, high-touch approach, it remains well-placed to capitalize on the growing demand for accessible financial services across India's diverse economic landscape.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.87%	-2.73%	-4.85%	+15.98%	-22.46%	-0.68%

Paisalo Digital Limited, a leading non-banking finance company (NBFC) focused on inclusive lending, has demonstrated remarkable expansion momentum by accelerating its touchpoint network growth across India. The company has expanded its network by 4 times from 1,052 touchpoints across 18 states in FY23 to 4,380 touchpoints across 22 states and union territories as of Q2 FY26.

Network Expansion and Customer Growth

Parameter	FY23	Q2 FY26	Growth
Total Touchpoints	1,052	4,380	4x
States Coverage	18	22	+4 states
Customer Franchise	~2 million	~13 million	6x
Employee Base	-	3,255	-

The current touchpoint network comprises 402 branches, 2,585 distribution points, and 1,393 Business Correspondents (BCs), strengthening the company's grassroots presence to drive financial inclusion and expand access to affordable credit.

Financial Performance Highlights

Metric	Q2 FY26 Performance
Assets Under Management (AUM)	₹54,494.00 million (25% CAGR over 3 years)
Quarterly Disbursements	₹11,025.00 million (+41% YoY)
Total Income	₹2,240.00 million (+20% YoY)
Net Interest Income	₹1,262.00 million (+15% YoY)
Profit After Tax	₹515.00 million (+3% YoY)
Net Worth	₹16,799.00 million (+19% YoY)

Asset Quality and Operational Excellence

Despite rapid expansion, Paisalo Digital maintains strong asset quality metrics with Gross NPA at 0.81% and Net NPA at 0.65%. The company achieved a collection efficiency of 98.4% and maintains a robust Capital Adequacy Ratio of 38.2%.

Strategic Growth Initiatives

Speaking on the expansion, Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, emphasized that expanding touchpoints and strengthening customer franchise are central to the company's growth strategy. The technology-enabled, high-touch model combines local presence with technology-led underwriting to improve credit accessibility and service quality across Bharat.

The company is actively investing in workforce capacity and prioritizing cross-selling of financial products through its Business Correspondent (BC) and branch networks to boost Banking as a Service (BaaS) share and drive long-term customer value. Additionally, USD 4.00 million from the company's USD 50.00 million FCCB issuance were converted into share capital, with the allotment of 74.06 lakh equity shares at a premium of ₹44.74 per share.

This continued expansion reinforces Paisalo Digital's operational scale and position as a trusted financial partner for micro-entrepreneurs, small business owners, and self-employed individuals, supporting India's financial inclusion agenda while delivering long-term stakeholder value.