Paisalo Digital Ltd Q2FY26 – From Microloans to Macro Drama: ₹2,240 Cr Income, ₹515 Cr PAT, 0.81% GNPA – The AI-powered NBFC that wants to be India’s Digital Dadaji
1. At a Glance
Paisalo Digital Ltd’s Q2FY26 numbers are the kind of results that make auditors smile and short sellers cry into their Excel sheets. The Agra-headquartered NBFC — yes, the one that lends to everyone from chaiwalas to EV drivers — clocked Total Income of ₹2,240 Cr, PAT of ₹515 Cr, and a Gross NPA of just 0.81%. For an NBFC with AUM of ₹5,449 Cr, that’s a shockingly clean book in a business where defaults are usually as common as unpaid Uber tips.
The market, however, doesn’t seem convinced — at a CMP of ₹32.6, the stock trades at a P/E of 14.2x and a P/B of 1.87x, even though ROE stands tall at 13.9% and ROCE at 13.1%. The company’s market cap is ₹2,938 Cr, and it’s recently been flirting with AI-based credit models like a teenager with ChatGPT — except Paisalo’s algorithm decides loan eligibility instead of writing bad poetry.
Promoters’ holding dropped to 41.16% (from 52.62%), FIIs jumped back to 20.89%, and DIIs shrank to 7.68%, while the public—our eternal optimists—now own 30.25%.
Quarterly revenue rose 19.8% YoY, PAT by 3.25%, and the company continues its multi-year marathon of tech-led inclusion, co-lending with SBI, BoB, PNB, UCO Bank, and Karnataka Bank, and new EV finance tie-ups with Mahindra and TVS.
So, in short: the company that once lent ₹10,000 to small shopkeepers is now talking AI, FCCBs, and co-lending frameworks worth thousands of crores. Let’s investigate how this Agra-based NBFC is managing to stay both grounded and sky-high.
2. Introduction
Paisalo Digital Ltd is what happens when your local microfinance agent goes digital — and then adds a dash of machine learning just to sound fancy on investor calls. Founded in 1992, before “fintech” was even a buzzword, Paisalo quietly built a massive network of rural and semi-urban borrowers long before it was cool.
Cut to FY25–26: Paisalo has turned that old-school distribution muscle into a tech-enabled lending powerhouse, working as a Business Correspondent (BC) for State Bank of India, running 970+ CSP outlets, and servicing 9.45 million customers — a figure that makes even some private banks look small.
The core of Paisalo’s strategy is its co-lending model, a game-changer where it lends just 20% of the loan while partner banks cover the rest. Think of it as “risk-sharing with benefits.” It’s how the company manages to scale fast without exploding its balance sheet.
And while many NBFCs still debate whether to adopt AI, Paisalo’s already in Phase 3 of AI-led transformation, deploying credit decisioning, onboarding automation, and predictive recovery systems. It’s not ChatGPT, but it’s close enough for Agra.
Meanwhile, with CAR at 39.16%, NIM at 6.40%, and Borrowings at ₹2,298 Cr (61% from banks) at a cost of 10.54%, Paisalo walks a fine line between ambition and prudence.
So, what’s Paisalo’s game? Simple: lend small, scale big, and let AI do the thinking. Or as they might say in Agra, “AI bhi paisa kama sakta hai.”
3. Business Model – WTF Do They Even Do?
Paisalo Digital’s business model is like a thali — a mix of everything: microloans, EV loans, SME loans, and a generous serving of co-lending gravy on top.
Here’s the breakdown:
Small Income Generation Loans: The “Umeed,” “Pragati,” and “Vikas” schemes are targeted at small traders and women entrepreneurs. These are your ₹10,000 to ₹2 lakh loans — the real grassroots lifeline.
Mobility Loans: Financing for autos, e-rickshaws, two-wheelers — basically anything that moves and honks.
Entrepreneurial Loans (Udaan): Up to ₹20 lakh for small business expansion.
Corporate Loans: Bigger cheques — up to ₹5 crore for SMEs ready to scale.
Business Correspondent Arm: Working as SBI’s national BC, handling deposits, insurance, and micro-pensions via 3,500+ outlets.
Paisalo’s secret sauce is its hybrid approach — half NBFC, half tech-fin company, and a quarter SBI agent. It’s like if a bank, a fintech app, and a kirana store decided to merge after a night of brainstorming.
And yes, they’re serious about AI — from loan screening to customer onboarding via AI-based OCR, everything is now rule-based and machine-validated. Their “digital underwriting” is what gives them an edge in scaling fast with limited staff.
In essence, Paisalo doesn’t just lend money — it sells hope, structure, and occasionally, electric rickshaws.
4. Financials Overview
Metric (₹ Cr)
Q2FY26
Q2FY25
Q1FY26
YoY %
QoQ %
Revenue
224
187
219
+19.8%
+2.3%
EBITDA (approx OPM 76.8%)
172
144
168
+19.4%
+2.4%
PAT
51.5
50
47
+3.0%
+9.6%
EPS (₹)
0.57
0.56
0.52
+1.8%
+9.6%
Annualised EPS = ₹0.57 × 4 = ₹2.28 So, P/E = 32.6 / 2.28 = ~14.3x, bang in line with the reported 14.2x.
Commentary: A 20% jump in topline with only a 3% rise in profits? Classic NBFC compression story — cost of funds inching up faster than lending yields. Still, maintaining a sub-1% NPA and 13–14% ROE in this economy is nothing short of wizardry. Maybe their AI deserves an appraisal too.
5. Valuation Discussion – The “Fair Value Range” Circus
Let’s run the holy trinity: P/E, EV/EBITDA, and DCF (Desi Common Sense Formula).
→ Fair Value Range = 15x to 20x × 2.3 = ₹34.5 to ₹46.0 per share
(b) EV/EBITDA: EV = ₹6,393 Cr; EBITDA = ₹840 × 0.77 = ₹647 Cr EV/EBITDA = 9.9x (already given) Industry median = 11–13x
→ Fair Value Range = ₹36 to ₹47 per share
(c) DCF / Simplified Growth Model: Assume PAT grows 12% CAGR, cost of equity 14%, terminal growth 4%. Intrinsic multiple = (1 + g)/(r – g) = 1.04 / (0.14 – 0.04) = 10.4x of current earnings → ₹23.9 per share (base).
Average all three = ₹35–₹46 per share.
📜 Disclaimer: This fair value range is for educational purposes only and not investment advice. If you still buy blindly, don’t blame us — blame Excel.
6. What’s Cooking – News, Triggers, Drama
Paisalo’s press releases read like a Bollywood franchise: there’s always something big “in the pipeline.”
Nov 2025: Q2FY26 Results – AUM ₹5,449 Cr; PAT ₹515
