Small-Cap Stock Under Rs 50: LIC-Owned NBFC's Profit Rises 14% In Q1, NII Up 20% YoY
Small-Cap Stock Under Rs 50: LIC-owned NBFC Paisalo Digital's gross non-performing assets and net NPA stood at 0.85% and 0.68% respectively.
Paisalo Digital Ltd. reported a 14% jump in its net profit during the quarter ended June 30, 2025. The non-banking financial company (NBFC), owned by India's largest state-run insurer, Life Insurance Corporation (LIC) of India, reported a bottom line of Rs 47.2 crore in the first quarter, compared to Rs 41.5 crore in the same period last fiscal
Paisalo Digital's net interest income soared 20% to 124.4 crore in the quarter from Rs 103.5 crore during the same period of previous fiscal. Its gross non-performing assets and net non-performing assets for quarter ended June 30 stood at 0.85% and 0.68% respectively.
Paisalo Digital Q1 FY26 Highlights (Consolidated, YoY)
Total Income up 17.2% at Rs 219 crore versus Rs 187 crore.
Net profit up 13.7% at Rs 47.2 crore versus Rs 41.5 crore.
"The first quarter earnings of fiscal 2026 marks a good start to the year for Paisalo Digital, as we delivered our highest-ever total income and achieved a significant milestone of crossing 11 million customers," Deputy Managing Director Santanu Agarwal said.
"The addiction of approximately 1.5 million customers in a single quarter highlights the growing relevance of our inclusive, last-mile credit model," Agarwal said.
As of first quarter, Paisalo Digital expanded its geographic footprint to 3,997 touchpoints across 22 states, an increase from 2,884 touchpoints in the same period of fiscal 2025. During the quarter, 50 new branches were added to the network, bringing the total branch count to 401.
Further, it has also expanded its co-lending partnership with SBI to jointly fund MSME and SME loans.
Agarwal emphasised that by leveraging Paisalo Digital's physical-digital approach with SBI’s trusted banking infrastructure, the company is confident to "deepen their impact on job creation and grassroots economic growth".
Shares of Paisalo Digital closed 0.55% lower at Rs 31 apiece on the BSE, compared to a 0.54% rise in the benchmark Sensex. The stock has fallen 56.31% in the last 12 months and 38.1% on a year-to-date basis.
An analyst tracking the company has a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 142.4%.
Paisalo Digital is a small-cap NBFC that offers financial services like business loans, income loans, and mobility loans. It has partnered with banks like Union Bank of India to offer loans to priority sectors. The NBFC comprises major state-run and international investors like the State Bank of India (SBI), SBI Life Insurance Co. Ltd, and the LIC.
