Paisalo Q2 FY27: Consolidated PAT +27% YoY to ₹65.6 Cr, Growth Cools Off Q1's Pace
PAT +27.35% YoY · revenue +23.79% · margins expanding · miss vs street
₹277.31 Cr
+23.79% YoY
₹65.64 Cr
+27.35% YoY
23.67%
+0.7pp YoY
₹0.72
Paisalo Digital's consolidated (primary) PAT came in at ₹65.64 Cr for Q2 FY27, up 27.3% YoY from ₹51.54 Cr and up 7.1% QoQ from ₹61.31 Cr, on consolidated revenue of ₹277.31 Cr (+23.8% YoY, +6.5% QoQ). Standalone tracked closely — PAT ₹65.05 Cr, +28.0% YoY — so there is no material standalone/consolidated divergence this quarter. Against our pre-result preview, which pegged on-plan expectations at ~₹285 Cr revenue and ~₹70 Cr PAT with Street (JM Financial, Kotak Securities) rating the stock Neutral on valuation, the actual print landed light: revenue ~2.7% below plan and PAT ~6.2% below plan, making this a modest miss versus the bar the market had set rather than a beat.
Q2 FY-2027 vs prior quarters
On management's own guidance — the reaffirmed 3-year target to roughly double AUM, income and net profit (~26% CAGR) — the 27.3% YoY consolidated PAT growth is essentially in line with, and marginally ahead of, that trajectory, so the headline growth guidance stands met. The one guided metric that did slip is NIM: management had maintained NIM at 6.6% as of the last concall, but this filing's H1 FY27 consolidated NIM comes in at 6.46% (6.43% standalone) per the regulatory ratio disclosures — a modest compression versus the guided level even as bottom-line margins improved, with consolidated net profit margin expanding to 23.67% of total income from 23.01% a year ago and 23.56% last quarter. The NPM expansion came alongside continued improvement in asset quality: consolidated GNPA fell to 0.65% and NNPA to 0.45%, both better than the 0.70%/0.49% levels flagged as a watch item pre-result, suggesting credit costs are not the drag on NIM — funding cost or book mix more likely is.
The stock went into the print at ₹79.29, down 14.6% over the past month of trading.
For context: revenue is at a 6-quarter high.
Reaffirmed 3-year target to double AUM, income, and net profit (implying ~26% CAGR). NIM maintained at 6.6%. Cost of borrowing improved 64 bps YoY to 10.1%. Four-pillar strategy (distribution, product, AI, liability) driving compound growth; co-lending treated as optional upside if compliance clears.
— This quarter: met
On the balance sheet, consolidated loans grew to ₹7,114.40 Cr as of September 30, 2026 from ₹5,929.51 Cr at FY26-end, a ~20% half-year expansion, funded in part by the quarter's NCD and commercial-paper issuances (~₹295 Cr raised across nine NCD/CP series per Note 5) and the conversion of 2,500 FCCBs into 46.27 lakh equity shares at a ₹44.74 premium (Note 6). No management press release was available in the context to cross-check qualitative framing of the quarter. Taken together, the quarter confirms the growth trajectory management guided to, but at a pace that is sequentially cooler than Q1 and a touch light of what the Street had priced in going into the print — consistent with the maturation-risk debate flagged pre-result rather than a resolution of it.
W1
NIM recovery: whether consolidated NIM moves back toward the 6.6% level management guided to, from H1 FY27's 6.46%
W2
Sequential PAT pace: QoQ growth slowed to 7.1% from Q1's run-rate — watch Q3 FY27 for re-acceleration or confirmation of a maturing growth curve
W3
GNPA/NNPA trend continuation from the improved 0.65%/0.45% consolidated levels this quarter
Filing presented 'in Lakhs except EPS', converted to Cr throughout; no exceptional items in the Q2FY26/Q1FY27/Q2FY27 quarterly columns (FY26 full-year column carries a minor ₹0.78 Cr exceptional item, irrelevant to this quarterly comparison) so no raw-vs-adjusted split is needed; H1 FY27 NIM (6.46% consol per Note 9) sits below the 6.6% level management said it was maintaining last quarter.
Digital Lending Growth Intact — Margins Stable, AUM Acceleration to Watch
Paisalo Digital enters Q2 FY27 with strong Q1 momentum: ₹260 Cr revenue (+19% YoY), ₹61 Cr PAT (+30%), and AUM surged 28% to ₹6,707 Cr with disbursements +128% YoY. NIM held steady at 6.6% and asset quality improved (GNPA 0.70%, NNPA 0.49%). On-plan Q2 should show moderation in profit growth but sustained revenue momentum. Street remains cautious on valuation; the focus is whether the NBFC can hold margins in a maturing market.
The Setup
Paisalo Digital, a pure-play digital lending platform, enters Q2 FY27 off a strong Q1. Revenue reached ₹260 Cr (+19% YoY), PAT ₹61 Cr (+30% YoY), and AUM jumped 28% to ₹6,707 Cr — driven by explosive disbursement growth (+128% YoY) and an expanding AI-led operating model. Asset quality improved: GNPA fell to 0.70% from 0.84%, NNPA 0.49%; margins held at 6.6% NIM, +4 bps YoY. The Street now watches whether this growth cadence can continue without margin compression. On-plan for Q2: revenue ₹280–290 Cr (18–20% YoY growth), PAT ₹68–73 Cr (15–18% YoY — moderation from Q1's outlier +30%), and NIM stability above 6.5%. Any earnings beat would surprise to the upside; a miss on guidance would pressure multiples.
~₹285 Cr
Q1 baseline ₹260 Cr at +19% YoY; on-plan maintains momentum
~₹70 Cr
Q1 was ₹61 Cr at +30% YoY; moderation to +15–18% expected (Q1 had one-time benefits)
6.5–6.7%
Q1 held at 6.6% despite cost-of-funds pressure; margin stability is the key watch
~25–28% YoY
Q1 delivered 28%; continued by momentum or moderating? Management guidance is critical
What a Strong vs. Weak Print Looks Like
Strong: Revenue ₹290+ Cr (>20% YoY), PAT ₹73+ Cr (>18% YoY), NIM stable or expanded, AUM growth >25% YoY, GNPA 20%. This would signal durable competitive advantage and margin power — stock would likely re-rate on duration of growth. Weak: Revenue 20 bps QoQ, GNPA trending higher, AUM growth <20% YoY. Any miss on guidance or margin compression would reflect competitive pressures and maturity in digital lending. Street repricing is likely (current Neutral consensus already prices caution).
Since Last Quarter — The Filing Scan
Capital Raise & Balance Sheet Strengthening: On Oct 1, 2026, Paisalo allotted ₹419.37 Cr in Non-Convertible Debentures (NCDs) — a major refinance to reduce cost of borrowing and extend tenure. On the same date, 14,000 Foreign Currency Convertible Bonds (FCCBs) converted into 259.12 Cr equity shares, reducing leverage while slightly diluting equity. This is proactive and healthy: balance sheet is being actively managed ahead of potential rate moves. Working-capital CP activity (₹50 Cr allotted, ₹65 Cr + ₹12 Cr redeemed in Sep) shows normal liquidity management. No refinance stress signals.
Promoter Pledge Activity — Routine Margin Management: On Sep 29, 2026, promoters Santanu Agarwal and Sunil Purushottam Agarwal disclosed creation of pledges on ~185 Lakh shares (1.02% each of total capital) for margin maintenance on leveraged holdings. This is routine promoter behavior, not distress: pledges were created and released contemporaneously (Oct 5 & 30, Sep 30) as margin calls fluctuated. No indication of forced selling or personal liquidity stress. The FII exit (from 17.5% in Q4 to 6.8% in Q1) may have triggered volatility that required pledging; offset by bulk buying from OCTASPACE REALCON (111 Cr of shares acquired in late Sep).
Ownership & Bulk Trading: FII holdings compressed from 17.54% (Q4 FY26) to 6.79% (Q1 FY27) — a major -10.75pp exit, likely profit-taking post stock run. DII and promoter stakes remained stable (DII 6.83%, promoter 46.72%). OCTASPACE REALCON PRIVATE LIMITED accumulated 111+ Cr notional in bulk deals on Sep 18 & 28 (at ₹89.54 & ₹82.30/share), suggesting some institutional/promoter-linked accumulation. No regulatory red flags; no insider selling near highs.
1 · AUM Disbursement Momentum — Growth Rate & Forward Guidance
Q1 disbursements surged 128% YoY (exceptional); AUM grew 28% to ₹6,707 Cr. Q2 disbursements will likely moderate (quarterly lumpiness is normal), but the trend is critical. Expect management to clarify: Q2 disbursement run-rate, expected AUM by year-end, and FY27 AUM growth guidance. Market consensus assumes 16–18% FY27 growth; any miss would suggest demand slowdown. Any beat would justify higher multiples.
2 · Net Interest Margin (NIM) & Net Interest Income Trajectory
NIM held at 6.6% in Q1 (+4 bps YoY) — critical because competition and rising cost-of-funds typically compress margins in digital lending. Q2 NIM will signal whether the moat is durable. NII grew 16% YoY to ₹144.7 Cr. Watch for: NIM compression >20 bps QoQ (would be alarming), NII growth <15% (would flag competitive pressure). Management's guidance on FY27 NIM is the key voice: if they see structural margin headwinds, stock will re-rate lower.
3 · Asset Quality — GNPA/NNPA Trends & Delinquency Buckets
Q1 showed improvement: GNPA 0.70% (from 0.84%), NNPA 0.49%. Digital lending maturity post-monsoon may see stress; 30–90–180 day delinquency buckets are key. Any GNPA expansion >1% YoY or acceleration in slippage would raise credit concerns and pressure multiples. Street is pricing in stable <1% GNPA; deterioration would be a negative surprise.
4 · FY27 Full-Year Guidance — Growth, Margins, AUM Target
Consensus estimates 14.7% revenue growth and 18.7% EPS growth for FY27 (delivered via ₹1.08k Cr revenue & ₹3.11 EPS). Any guidance raise would be a surprise (bull case); any trim would signal execution risk or market maturity. Management's tone on market competition and macro headwinds will set post-result sentiment. This is the pivot point: if Street gets 16%+ EPS growth guidance, Neutral can shift to Buy.
Paisalo Digital is a fundamentally healthy NBFC with strong growth momentum, improving asset quality, and stable margins in a maturing digital-lending market. Q2 FY27 is a sequential print — expect moderation from Q1's exceptional +30% PAT growth (likely to +15–18%) but revenue momentum sustained (18–20% YoY). The balance sheet has been refreshed (₹419 Cr NCDs, FCCB conversions), and promoter activity is routine. The real catalysts are: (1) Can AUM growth stay >20% without margin compression? (2) Does asset quality hold as digital lending matures? (3) Will management raise FY27 guidance? Street is positioned Neutral with limited upside built in — this means execution and guidance are the only re-rating levers. For bulls, a strong print + FY27 growth guidance >16% would justify re-rating; for bears, margin compression or AUM slowdown would confirm maturity concerns and justify Street's caution.