Fino Payments Bank Aims For Rs 100-Crore Profit In FY26 On Back Of Rise In Digital Transactions
The fintech firm is taking a 'risk-calibrated approach' in FY26 while continuing to focus on its bottom line.
Fino Payments Bank Ltd. is targeting a profit after tax of Rs 100 crore in the current financial year, according to Chief Executive Officer Rishi Gupta.
"We are working on some renegotiation, working on other businesses, some new lines of business, some new products as we go down the year," the managing director said during a conversation with NDTV Profit on Tuesday.
"Our target is to cross maybe Rs 100 crore of PAT this year with the full 25% tax incidence. So, we'll be focused on the PAT numbers, on the bottom line," Gupta added.
He highlighted how the increase in digital transactions made it a "phygital" company.
"In the last two years, and specifically in the last one and a half years, we have seen there's a large push because of the UPI ecosystem. Roughly, 49% of our transaction volume value is coming from digital now.
"So, we have become a truly phygital company. So, not only the merchant growth, but the digital growth makes it even more robust and more, more avenues for us to make revenue and profits," the top executive emphasised.
He revealed that the fintech firm continued to add between 1.5 lakh and 2 lakh merchants annually to its existing network of about 19 lakh merchants.
On the lending front, Fino Payments Bank is collaborating with non-banking financial companies to offer products like gold loans, microloans and affordable housing finance. The bank has applied for a small finance bank licence. Gupta believes it will enable greater control over its product offerings and drive further growth.
The CEO highlighted challenges in other areas, such as a decline in micro-ATM, Aadhaar Enabled Payment System and remittance businesses due to regulatory changes and shifting customer preferences towards digital payments.
In response to a government push against digital and cyber fraud, Gupta said: "Our approach in FY26 is to be a little cautious and take a more risk-calibrated approach on the growth side, not to grow exponentially at the cost of the risk and the ecosystem, which we are facing in the country."
The company remains firmly focused on the bottom line. "On the revenue side, even if you have to compromise somewhere on the revenue, the bottom line is something which we'll continue to focus on," he added.
