Quarterly Financial Results
Paisalo Digital Q1 FY27 Results: Disbursements Surge 128%, AUM Crosses ₹67,000 Million
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PAISALO
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- Paisalo Digital Limited reported a strong Q1 FY27 performance with Assets Under Management (AUM) rising 28% YoY to ₹67,074 million, while loan disbursements surged 128% YoY to ₹17,309 million. Total income increased 19% YoY to ₹2,603 million, and PAT grew 30% YoY to ₹613 million. The company also strengthened asset quality, reduced borrowing costs, and accelerated AI-led automation across its lending operations.
PRICE-SENSITIVE TRIGGER
Event: Paisalo Digital announced its Q1 FY27 financial results for the quarter ended June 30, 2026.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The company delivered strong growth in disbursements, AUM, and profitability while improving asset quality and lowering borrowing costs, supported by technology investments and AI-driven operational efficiencies.
Metrics:
Key Financial Metrics:
- Assets Under Management (AUM): ₹67,074 million, up 28% YoY.
- Loan Disbursements: ₹17,309 million, up 128% YoY.
- Total Income: ₹2,603 million, up 19% YoY.
- Profit After Tax (PAT): ₹613 million, up 30% YoY.
- Net Interest Margin (NIM): 6.6%, compared with 6.5% in Q1 FY26.
- Gross NPA (GNPA): 0.70%, improved from 0.84%.
- Net NPA (NNPA): 0.49%, improved from 0.68%.
Operating Highlights:
- Net Interest Income: ₹1,447 million, up 16% YoY.
- Cost of Borrowing: 10.1%, improved by 64 bps YoY.
- Capital Adequacy Ratio: 33.1%.
- Tier-I Capital Ratio: 26.8%.
- Net Worth: ₹18,298 million, up 15% YoY.
- Return on Assets (RoA): 3.6%.
- Return on Equity (RoE): 13.4%.
Highlight:
- Paisalo Digital delivered exceptional business growth during Q1 FY27, with loan disbursements more than doubling year-on-year while maintaining healthy asset quality and improving funding costs through AI-driven operational efficiencies.
What Happened ?
Paisalo Digital reported robust Q1 FY27 performance, driven by strong credit demand from SMEs, MSMEs, and micro-enterprises. The company expanded its distribution network, strengthened customer acquisition, improved asset quality, and reduced borrowing costs through prudent liability management. Simultaneously, Paisalo accelerated the adoption of AI across customer onboarding, data processing, customer engagement, and outbound calling to improve productivity and scalability.
key details
Business & Operational Highlights:
- AUM increased 28% YoY to ₹67,074 million.
- Disbursements surged 128% YoY to ₹17,309 million.
- Customer franchise expanded to approximately 18 million, with 1.8 million new customers added during the quarter.
- Distribution network expanded to 5,995 touchpoints, including 696 new touchpoints added in Q1.
- Branch network increased to 424 branches across India.
AI-Driven Transformation:
- Processed 180,000 loan applications during Q1.
- Handled 500,000 voice data conversions using AI.
- Expanded to 18 live AI bots, up from 7 in Q4 FY26.
- Conducted approximately 200,000 AI-driven outbound calls daily, compared with 150,000 in the previous quarter.
- AI-led efficiencies helped reduce employee headcount by 2% YoY while improving productivity.
Asset Quality & Funding:
- GNPA improved to 0.70% from 0.84% a year ago.
- NNPA improved to 0.49% from 0.68%.
- Total borrowings stood at ₹48,467 million.
- Cost of borrowing declined by 64 basis points YoY to 10.1% through prudent liability management.
- Capital Adequacy Ratio remained strong at 33.1%, providing ample capital for future growth.
Risk Analysis
Summary:
- Paisalo delivered strong growth while maintaining healthy asset quality. However, continued growth will depend on sustained credit demand, prudent underwriting, and effective management of funding costs as the loan book expands.
Key Risks:
- Credit quality could weaken if macroeconomic conditions deteriorate.
- Rapid loan book expansion requires disciplined underwriting.
- Funding costs remain sensitive to interest rate movements.
- AI implementation must continue to deliver operational efficiencies without compromising customer experience.
Worst Case:
- If credit demand slows or asset quality deteriorates due to weaker borrower repayment trends, profitability and return ratios could come under pressure despite the company’s strong capital position.
Risk Level: Medium
Company Commentary
Management highlighted the following during the quarter:
- Santanu Agarwal, Deputy Managing Director, said the quarter demonstrated Paisalo’s ability to deliver disciplined growth while expanding its reach across underserved markets. He highlighted that AI-led capabilities are improving productivity, strengthening customer engagement, and enhancing decision-making across the business. He also emphasized the company’s diversified funding profile, improving cost of funds, stable asset quality, and strong capital position, which together support sustainable long-term growth.
Official Exchange Filing: Paisalo Digital Limited
