After RBI’s recent mood swings and fintech purges, Fino Payments Bank somehow managed to emerge with fewer bruises — and even fatter margins. Imagine surviving a flood by selling life jackets while rowing toward a Small Finance Bank license. The CEO sounded part monk, part startup hustler, promising that “discipline and trust” would pay off. As the Bhagavad Gita reminds us: “Perform your duty with discipline, without attachment to the fruits of action.” Keep reading — the interesting part begins when margins meet regulation and ambition meets RBI paperwork.
2. At a Glance
Revenue down 12% YoY – Topline shrunk faster than optimism in the remittance segment.
EBITDA up 8% YoY – Margins worked out while revenues went on vacation.
EBITDA Margin 15.4% – Highest ever; clearly, frugality is the new fintech feature.
PAT down 27% YoY – Profit met higher tax and depreciation, didn’t survive.
CASA deposits up 36% YoY – Trust still deposits itself, literally.
Cost of Funds at 1.9% – Bankers dream of this; Fino actually lives it.
Stockholders’ mood: “We’ll wait for that SFB license, maybe with a prayer candle.”
3. Management’s Key Commentary
“We focused on stabilizing our core business and maintaining profitability in an evolving ecosystem.” (Translation: We didn’t grow, but at least we didn’t die trying.) 😏
“CASA continues to be the cornerstone of our profitability story.” (A polite way of saying UPI gives fame, CASA gives food.)
“Our cost of fund at 1.9% remains one of the lowest in the industry.” (Even savings accounts envy those margins.)
“We are in the final stages of approval for our SFB license.” (The entire management team now refreshes the RBI inbox hourly.)
“Revenue softened due to calibrated actions and regulatory reforms.” (That’s CFO code for ‘RBI said no.’)
“We’re testing secured lending in 5 states.” (Because every Payments Bank dreams of being a lender when it grows up.)
“Our AI product will go live this quarter.” (Because no call is complete without sprinkling ‘AI’ for investor dopamine.)
4. Numbers Decoded
Metric
Q2 FY26
YoY Change
One-Line Analysis
Total Revenue
₹400 Cr
↓12%
Growth took a pause, blame regulation.
Net Revenue
₹148.6 Cr
↑4%
Margins flexed as volumes fell.
EBITDA
₹61.6 Cr
↑8%
Leaner, meaner, quieter.
EBITDA Margin
15.4%
+284 bps
Best ever — cost yoga works.
PAT
₹15.4 Cr
↓27%
Taxman stole the punchline.
CASA Deposits
₹2,306 Cr
↑36%
The faith is real.
Renewal Income
₹62 Cr
↑36%
Repeat customers > new downloads.
Digital Payments Revenue
₹63.4 Cr
↓20%
Regulatory hangover not over.
Cost to Income Ratio (H1)
29.8%
+4.2 pts
Tech capex bit into discipline.
Margins shine, revenue reclines. The CFO might frame this as “quality over quantity.” Investors might call it “quantity missing.”
5. Analyst Questions
Q: What’s up with the Digital Payment slowdown? A: “Risk-calibrated approach.” (Translation: We pressed pause before RBI pressed us.)
