Niyogin Fintech Ltd Q2 FY26 – From Negative ROE to AI Dreams, The NBFC That Wants to Be a Super App for Bharat’s Wallets

1. At a Glance

Niyogin Fintech Ltd (BSE: 538772) – a ₹674 crore market cap fintech-cum-NBFC that insists it’s not “just another NBFC” – has had quite a journey from posting a ₹25 crore loss in FY24 to eking out ₹0.63 crore in profit in the latest quarter (Q2 FY26). The stock currently trades at ₹60.6, down 18% in the last three months, but still up 17% year-on-year. In short, it’s volatile – like an unregulated crypto, only with RBI watching.

With a 46.9% sales growth and a 59.5% profit growth (TTM), Niyogin seems to be shedding its “perpetual startup” image. The company’s quarterly revenue stands at ₹70.1 crore, while PAT for the same quarter came in at ₹0.63 crore, marking a 107% YoY rise. But before you get too excited, its ROE is still at a cringe-worthy -5.26%, ROCE at -2.06%, and its interest coverage ratio languishes at 0.50.

In classic fintech fashion, Niyogin is shouting buzzwords likeAI,BaaS, andWealthTech, but the actual money is trickling in slowly. Yet, the promoters seem confident – having increased their holding by 1.01% last quarter. Maybe they see something brewing under the hood? Or maybe they just didn’t find better options on Groww.

2. Introduction

Niyogin Fintech started out as a humble NBFC and evolved into a full-blown digital ecosystem for MSMEs – the kind of small businesses that are usually ignored by large banks unless they want to sell them a POS machine.

In India’s vast fintech jungle, where every company claims to be the “platform of platforms,” Niyogin has built not one buttwo kingdoms:iServeUfor Rural Tech andMoneyfrontfor Urban Tech. The idea? Combine financial inclusion for rural India with wealth management for the urban-savvy investor. A “chai tapri to stock broker” kind of business plan.

The company’s current game plan revolves around monetizing every part of this ecosystem — credit, payments, investments, analytics, and even AI. Basically, Niyogin wants to be the “Swiggy” of financial services: deliver credit, collect payments, and maybe throw in a savings plan before the bill arrives.

Its GTV (Gross Transaction Value) is already touching ₹3,450 crore per month, driven primarily by AePS (33%) and cash-out services (42%). But while transactions are zooming, profits are crawling – a typical fintech problem. Think of it as:revenue growing like ChatGPT usage, profit growing like your post-tax salary.

3. Business Model – WTF Do They Even Do?

Niyogin operates at the intersection of financial inclusion, lending, and digital wealth management — basically, all the complicated stuff banks take decades to figure out.

a) Rural Tech (iServeU)– The crown jewel of Niyogin’s fintech empire. With over53,000+ banking access pointsand5 crore+ account holders, iServeU provides BaaS (Banking-as-a-Service) to Bharat. It offers AePS, Micro-ATM, DMT, BBPS, Aadhaar Pay, and even Microinsurance. This is not your typical “loan app”; it’s the fintech plumbing that connects kirana stores to the formal banking system.

b) Urban Tech (Moneyfront & Credit Platform)– Here’s where Niyogin plays the double role of credit aggregator and wealth advisor. It partners with major NBFCs likePiramal, L&T Finance, IIFL, Bajaj Finserv, and Tata Capitalto disburse loans. On the wealth side, the Moneyfront platform helps retail and distributors invest directly in mutual funds, corporate deposits, and bonds.

c) Institutional Offerings– Think of this as Niyogin’s “for the suits” division – offering corporate treasury management and portfolio analytics.

d) AI Play– The newest addition to their deck. With the planned acquisition ofOrbo’s AI platform Superscan, Niyogin wants to use machine learning to handle customer acquisition, compliance, and risk assessment. Basically, letting AI decide who gets the loan while the humans take credit for the approvals.

In short, Niyogin wants to be everything – lender, broker, and tech enabler – while the rest of the fintech world burns cash trying to do one of those things well.

4. Financials Overview

Commentary:After several quarters of red ink, Niyogin has finally posted a positive PAT. It’s like that one semester where a backbencher finally scores above 40%. However, the quarterly sales dip of 3% shows the top line still needs a Red Bull. The operating profit margin, while still low at 3.9%, has at least moved from negative