Paisalo Digital Q3FY26 results signal growth with 16% AUM rise and record PAT amid MSME lending momentum

Paisalo Digital reported steady performance for the quarter ended 31 December 2025, with growth across assets, earnings and customer base. Profit After Tax (PAT) in Q3FY26 rose 6% year-on-year to Rs 66.3 crore, while Assets Under Management (AUM) increased 16% year-on-year to Rs 5,508.2 crore, supported by stable asset quality.

Sequentially, profitability strengthened, as PAT moved up 29% from Rs 51.5 crore in Q2FY26. AUM also edged higher on a quarter-on-quarter basis, rising 1% from Rs 5,449.4 crore. The company continued to report low non-performing assets, indicating that portfolio growth was accompanied by measured risk management and disciplined underwriting.

Total income in Q3FY26 stood at Rs 240.1 crore, showing an 18% year-on-year increase from Rs 203.8 crore in Q3FY25. On a sequential basis, income rose 7% from Rs 224.0 crore in Q2FY26. Net Interest Margin (NIM) remained broadly stable, at 6.6% in Q3FY26 compared with 6.6% in Q3FY25.

On a quarter-on-quarter comparison, NIM improved by 5 basis points from 6.5% in Q2FY26, even though it was lower by 2 basis points versus the previous year. Gross non-performing assets declined to 0.83% in Q3FY26, down 27 basis points from 1.10% in Q3FY25, reflecting continued focus on recoveries and credit screening.

Gross NPA was almost unchanged against the previous quarter, inching up by 2 basis points from 0.81% in Q2FY26. Net NPA measured 0.66% in Q3FY26, easing by 18 basis points from 0.84% in Q3FY25. Sequentially, Net NPA stayed close to prior levels, compared with 0.65% reported in Q2FY26.

Fresh lending activity remained healthy, as disbursements reached Rs 1,057.4 crore in Q3FY26, up 7% year-on-year from Rs 985.6 crore in Q3FY25. Compared with Q2FY26, disbursements softened by 4% from Rs 1,102.5 crore, indicating some moderation in quarterly origination after earlier expansion.

The movement in key financial indicators between Q3FY25 and Q3FY26 is shown below.

Metric	Q3FY25	Q3FY26
AUM (Rs crore)	4,748.8	5,508.2
Total income (Rs crore)	203.8	240.1
PAT (Rs crore)	62.4	66.3
Disbursements (Rs crore)	985.6	1,057.4
Gross NPA (%)	1.10	0.83
Net NPA (%)	0.84	0.66
NIM (%)	6.6	6.6

Paisalo Digital Q3FY26 results: management commentary and MSME focus

Discussing macro conditions, Mr. Santanu Agarwal, Deputy Managing Director of Paisalo Digital Ltd, said: "Progress on India-US trade engagement, along with favorable macro policies have strengthened India's economic outlook. The Union Budget 2026 further reinforced policy support for MSMEs through enhanced credit guarantees, improved access to growth capital, and stronger receivables-financing mechanisms, creating a favorable environment for sustained MSME growth and formal credit expansion."

On business performance, Santanu Agarwal added: "Q3 FY26 marked another quarter of disciplined, sustainable growth for Paisalo. We expanded AUM by 16% YoY to Rs 55,082 Mn and delivered our highest-ever quarterly PAT of Rs 663 Mn, underscoring the strength of our operating model and stable asset quality. Our customer franchise reached ~14 million, with about 1.6 million additions this quarter. We also raised Rs 1,885 Mn at an 8.5% cost of funds, optimizing our liability profile to support capital efficient growth across MSME and income-generation lending," he added.

Paisalo Digital Q3FY26 results: technology strategy and franchise scale

Outlining the technology roadmap, Santanu Agarwal further stated: "Paisalo has embarked on a transformational journey to become an AI-first franchise, embedding AI across its lending, risk, and operations stack. By integrating advanced data ecosystems, automated workflows, and intelligent customer journeys, Paisalo is building a future-ready platform to drive sustainable, tech-led growth," Santanu Agarwal further stated.

During Q3FY26, Paisalo Digital expanded its physical and customer reach alongside financial growth. The customer franchise rose to about 14 million, with around 1.6 million customers added during the quarter. The company increased presence by opening 492 additional contact points, taking total touchpoints to 4,872 across 22 states.

Overall, Paisalo Digital reported higher AUM, income and PAT in Q3FY26, while keeping NPA ratios low and NIM steady. Management highlighted support from macro policies for MSME lending and outlined plans for an AI-led operating model, as the franchise and branch network continued to scale across multiple Indian states.