Fino Payments Bank posts ₹13.7 Cr loss in Q1FY27 as fee income slumps 40% YoY

Fino Payments Bank (standalone; the bank has no subsidiaries) swung to a net loss of ₹13.7 Cr in Q1 FY27 (quarter ended June 30, 2026), reversing a ₹17.8 Cr profit a year ago and a ₹7.1 Cr profit in Q4 FY26. Total income fell to ₹306.9 Cr from ₹453.5 Cr YoY (-32.3%) and ₹340.0 Cr QoQ (-9.7%), and net margin turned negative at -4.5% versus +3.9% YoY and +2.1% QoQ. Basic EPS was -₹1.65 versus +₹2.13 a year ago.

The swing was driven almost entirely by Other Income — largely fees from CASA, AePS, remittances, cards and digital payment services — which fell to ₹234.6 Cr, down 40.2% YoY (₹392.5 Cr) and 14.9% QoQ (₹275.9 Cr). Core interest earned, by contrast, grew to ₹72.2 Cr, up 18.4% YoY and 12.7% QoQ, showing the liability-led CASA book expanding even as fee income collapsed. Operating profit before provisions flipped to -₹13.7 Cr from +₹24.6 Cr YoY and +₹5.4 Cr QoQ (operating margin -19.0% vs +40.4% YoY, +8.4% QoQ). No tax was provided given the pre-tax loss, versus a ₹6.9 Cr charge a year ago.

The stock went into the print at ₹163.7, down 4.1% over the past month of trading.

For context: revenue is at a 6-quarter high.

This is broadly consistent with — if more severe than — management's own framing on the Q4 FY26 call, where it said the high-margin UPI P2M digital payments business was 'intentionally paused for a comprehensive review,' explicitly flagging near-term revenue pain; the ~40% YoY fee-income drop is that headwind materialising, though the resulting net loss goes beyond a simple 'revenue impact' framing. Management gave no quantitative FY27 guidance, only the directional priority of growing CASA/liabilities and reviving transaction businesses en route to a 20% ROE-by-FY30 Small Finance Bank transition (in-principle RBI approval received December 5, 2025); no updated financial guidance accompanies this result. A web search found no published Street consensus estimate for this specific quarter — only earnings-call scheduling coverage — so vsStreet is unknown. The quarter also carries a leadership overhang: former MD & CEO Rishi Gupta took voluntary early retirement effective May 21, 2026, after a Board review of DGGI Hyderabad-related legal opinions found no case against him, with Ketan Merchant continuing as RBI-approved Interim CEO and Anup Agarwal as Interim CFO, both on tenures capped at three months.