Paisalo Digital’s Q1FY26 Profit Rises 14% YoY, Surpasses 11 Mn Customer Milestone

With a robust Assets Under Management (AUM) of Rs 5,230 crore in Q1 FY26, Paisalo Digital showed a 14% year-on-year rise from Rs 4,600 crore in Q1 FY25 and remained relatively constant when compared to Rs 5,232.8 crore in Q4 FY25. Despite being less than the Rs 1,309 crore disbursed in the previous quarter, the quarter's disbursements came to Rs 758.1 crore during the quarter ended June 30, 2025, up 16% YoY from Rs 652.1 crore reported in the year-ago quarter.

Net Stage 3 assets climbed to 0.68%, a 66-basis-point YoY gain, while Gross Stage 3 assets expanded to 0.85%, a 64-basis-point YoY growth. The company reported a profit after tax (PAT) of Rs 47.2 crore, up 14% year on year from Q1 FY25's Rs 41.5 crore and somewhat from Q4 FY25's Rs 46.3 crore. As a result of better yield management, the Net Interest Margin (NIM) increased by 30 basis points YoY to 6.5%. However, there was minor pressure on profitability measures as the Return on Equity (RoE) dropped by 10 bps to 11.9% and the Return on Assets (RoA) dropped by 30 bps to 3.7%.

Mr. Santanu Agarwal, Deputy Managing Director of Paisalo Digital Ltd, said: "Q1 FY26 marks a good start to the year for Paisalo Digital, as we delivered our highest-ever Total Income and achieved a significant milestone of crossing 11 million customers. The addition of approximately 1.5 million customers in a single quarter highlights the growing relevance of our inclusive, last-mile credit model. Our strategic co-lending partnership extension with SBI underscores our shared commitment to expanding affordable and timely credit access to underserved entrepreneurs and self-employed individuals across the country."

"By leveraging our integrated physical-digital approach alongside SBI's trusted banking infrastructure, we are confident to deepen our impact on job creation and grassroots economic growth. Our disciplined underwriting practices and robust risk management systems are reflected in our healthy asset quality, with Gross and Net NPAs contained at 0.85% and 0.68%, respectively. We remain focused on scaling responsibly, innovating continuously, and empowering millions more in the quarters ahead," Santanu Agarwal further added.

In a resolution dated August 8, 2025, Paisalo Digital Limited's Operations and Finance Committee allocated 3,400 rated, listed, senior, secured, redeemable, taxable, and transferable Non-Convertible Debentures (NCDs) through private placement. Each NCD has a face value of Rs 1 lakh, a 36-month tenure, and a coupon rate of 9.75% annually with quarterly interest payments. A first-ranking pari-passu charge on loan receivables serves as security for the debentures, ensuring security coverage of at least 1.10 times the outstanding amount. At maturity, which is set for August 8, 2028, the NCDs will be redeemed at par and the principal will be paid back in full.

Compared to 2,884 touchpoints in Q1FY25, the NBFC company's overall geographic existence as of Q1FY26 was 3,997 touchpoints spread across 22 states. 50 new branches were added to the network during the quarter, bringing the total number of branches to 401. With an additional ~1.5 million clients throughout the quarter, the customer franchise now has a record ~11 million customers. The firm said that its net worth surged to Rs 15,746 million, a 15% YoY growth.