Paisalo Digital Ltd Management's Take

📊 AUM grew 16% YoY to Rs.55,082 million, disbursements increased 7% YoY to Rs.10,574 million.
💰 Highest ever quarterly PAT at Rs.663 million, with 6% YoY and 29% QoQ growth.
📉 Cost of funds lowered to 10.3% from 11.3% YoY, enhancing profitability.
🏦 Capital adequacy strong at 38.3% with Tier 1 at 30.7%; net worth rose 18% YoY.
🤖 Transitioning to AI-first operating model to improve risk and operational efficiency.
📱 Launch of public customer app planned by Q3 next fiscal, advancing digital strategy.
⚠️ SBI co-lending initiative postponed to Q1 next fiscal; geographic concentration at 90% in five states noted.
📈 Operating expenses up 49% YoY due to tech investments; expect stabilization with scale.

AUM Growth: Rs.55,082 million in Q3 FY26, up 16% YoY, showing continued portfolio expansion.
Profitability: Highest quarterly PAT of Rs.663 million, 6% YoY and 29% QoQ increase; 9M FY26 PAT at Rs.1,650 million.
Income & Returns: Total income up 18% YoY to Rs.2,401 million; Net Interest Income grew 19% to Rs.1,453 million; ROA 3.8%, ROE 12.6%.
Cost of Funds: Decreased to 10.3% from 11.3% YoY; Rs.1,885 million raised at 8.5% rate during quarter.
Capital Position: Capital adequacy strong at 38.3%, Tier 1 capital at 30.7%; Net worth increased 18% YoY to Rs.17,404 million.

Disbursements: Rs.10,574 million, 7% YoY growth.
Network Expansion: Added 492 touchpoints, total 4,872 across 22 states, including 402 branches, 1,429 business correspondent points.
Customer Base: Roughly 14 million customers after adding 1.6 million this quarter.
Asset Quality: GNPA improved from 1.10% to 0.83%; NNPA at 0.66%.
Collection Efficiency: Maintained at 98.8%.
Product Diversification: Inclusion of loans for solar, medical equipment, agriculture machinery, and loans against property.

Growth Plans: Aim to double AUM, income, and PAT in 3 years.
AI Integration: Adopting "AI-first" approach to enhance risk and operational efficiency.
Digital Initiatives: Launching a public customer app by Q3 next fiscal year.
Inorganic Growth: Exploring acquisitions aligned with core strengths.
Margin Guidance: NIM to remain around 6% annually.

SBI Co-lending Delay: MSME co-lending postponed to Q1 next fiscal due to RBI guideline driven compliance issues.
Geographical Concentration: 90% of portfolio in Delhi, Maharashtra, Haryana, Rajasthan, Uttar Pradesh; diversification is ongoing.
Rising Expenses: Operating expenses increased 49% YoY; expected to stabilize as scale improves.

Regulatory Alignment: Management aligns with recent RBI underwriting and risk management guidance.
Collection Infrastructure: Uses high-tech automated daily reminders (~350K EMI alerts) and large in-house field team.
Promoter Confidence: Promoters increased stake by 0.5% to 41.7% as of 9M FY26.