Paisalo Digital Limited, a digitally enabled non-banking financial company (NBFC) focused on lending to underserved and emerging MSME and SME segments, announced a strong financial performance for the quarter ended December 31, 2025 (Q3 FY26), marked by healthy growth across key operating and profitability parameters.
During the quarter, the company's Assets Under Management (AUM) grew by 16% year-on-year to ₹55,082 million, reflecting sustained demand for credit across its core customer segments. Total income increased by 18% YoY to ₹2,401 million, supported by consistent disbursement momentum and stable yields. Paisalo reported its highest-ever quarterly Profit After Tax (PAT) of ₹663 million, registering a 6% YoY growth, while maintaining a steady Net Interest Margin (NIM) of 6.6%, underscoring the strength of its operating model.
Asset quality remained healthy and stable during the quarter. Gross NPA stood at 0.83% and Net NPA at 0.66%, reflecting disciplined credit underwriting and effective risk management practices. Collection efficiency for the quarter remained robust at 98.8%. The company also strengthened its funding profile, with cost of borrowing improving significantly to 10.3%, a reduction of 92 basis points YoY, driven by refinancing initiatives and enhanced lender confidence.
Paisalo continued to expand its distribution footprint, adding 492 new touchpoints during the quarter, taking its total network to 4,872 touchpoints across 22 states. The customer franchise reached a record ~14 million customers, with approximately 1.6 million customers added in Q3 FY26, highlighting strong market penetration and scale.
During the quarter, the company also advanced its strategic transformation towards becoming an AI-first NBFC, embedding artificial intelligence across lending, risk, and operational processes to drive scalable, technology-led, and sustainable growth.
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