Lower expenses lift Paisalo's operating margin to 80.27%
Margin expansion came despite a 12.19% rise in interest expense; management's presentation also reported 33% YoY AUM growth to Rs 72,659 million.
Filed 22 Oct 2026, 10:38 IST · Paisalo Digital Ltd (PAISALO)
Key takeaways
- Consolidated net profit rose 7.06% QoQ even as interest expense increased 12.19%.
- Operating margin expanded 2.62 percentage points to 80.27% QoQ as revenue grew 6.54% while expenses fell 5.95%.
- Paisalo's 80.27% operating margin was 15.95 percentage points above the 64.32% median for 18 Financial Services peers.
Price around the results
Revenue growth outpaced costs in Q2FY27
Consolidated revenue increased 6.54% QoQ while expenses declined 5.95%, lifting operating profit growth to 10.13%. Operating margin consequently expanded 2.62 percentage points from Q1FY27. Interest expense rose 12.19%, so profit before tax grew more slowly at 6.35% and net profit increased 7.06%.
No other-income boost to reported profit
Other income was zero and contributed 0% of profit before tax, leaving reported earnings free of that support. The tax rate also declined by 0.49 percentage points QoQ to 24.92%, providing a modest benefit to the net-profit outcome. Paisalo's 80.27% operating margin stood 15.95 percentage points above the 64.32% median of 18 Financial Services peers that had reported.
AUM growth and AI-led lending are management's focus
Management's presentation said AUM increased 33% YoY to Rs 72,659 million in Q2FY27. Management said it targets asset quality below 2% through credit cycles. It also said Paisalo is deploying an AI-led franchise across customer acquisition, underwriting, portfolio actions and engagement to support lower-cost, scalable lending.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹277 cr | ₹260 cr | +6.54% |
| Other income | ₹0 cr | ₹0 cr | — |
| Expenses | ₹55 cr | ₹58 cr | -5.95% |
| Operating profit | ₹223 cr | ₹202 cr | +10.13% |
| Operating margin (%) | 80.27% | 77.65% | — |
| Interest | ₹130 cr | ₹116 cr | +12.19% |
| Depreciation | ₹5 cr | ₹4 cr | +26.79% |
| Profit before tax | ₹87 cr | ₹82 cr | +6.35% |
| Tax | ₹22 cr | ₹21 cr | +4.31% |
| Net profit | ₹66 cr | ₹61 cr | +7.06% |
| EPS (₹) | ₹0.72 | ₹0.67 | +7.46% |
Operating margin of 80.27% compares with a Financial Services sector median of 64.32% across 18 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.43% | -0.89% |
Volume on the results session was 0.50× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- AUM increased 33% year on year to Rs 72,659 million in Q2FY27.
Guidance & outlook
- The company targets asset quality below 2% through credit cycles.
New initiatives
- Paisalo is deploying an AI-led franchise across acquisition, underwriting, portfolio actions and customer engagement.
What to watch
- Whether operating margin stays above 80.27% in the next quarter.
- Whether interest expense growth moderates from 12.19% QoQ.
- Asset quality against management's stated target of below 2% through credit cycles.