Fino Payments Bank Reports Q2 & H1 FY26 Results; Focuses on Digital and Ownership Growth
Fino Payments Bank reported Q2 & H1 FY26 results with 36% YoY deposit growth and expanded EBITDA margins. Digital and CASA segments showed strong performance, despite a dip in traditional transaction business, with a strategic shift towards higher-margin offerings.
The announcement provides comprehensive financial results and strategic updates, which are important for investors. The mixed financial performance, coupled with strategic shifts and the ongoing SFB license evaluation, indicates a medium-term impact on the company's direction and valuation.
While revenue and PAT showed a decline for Q2 and H1 FY26, the bank demonstrated strong growth in key areas like average deposits (36% YoY), CASA renewal income (36% YoY), and EBITDA (8% YoY for Q2). The bank is strategically shifting towards higher-margin customer ownership and digital payments, with a positive outlook for Q3 FY26 revival in digital services and ongoing SFB license evaluation, balancing out the negative and positive aspects to a neutral sentiment.
Fino Payments Bank Limited released its Investor Presentation covering the audited financial results for the half year ended September 30, 2025, and unaudited financial results for the quarter ended September 30, 2025. * Q2 FY26 Key Highlights: * CASA subscription renewal income saw a 36% YoY growth. * The active customer base reached over 57 lakh digitally active customers by September 2025. * Customer base expanded to 1.6 crores, with 9.1 lakh accounts opened, marking the highest for a quarter. * Average deposits increased by 36% YoY to ₹2,306 crores, with a cost of funds at 1.9%. * Digital Business contributed 16% to the revenue. * EBITDA margin expanded to 15.4% from 12.6% in Q2 FY25. * Daily UPI transactions grew by 33% YoY to approximately 1 crore. * Net-worth stood at ₹786 crores as on September 30, 2025. * Financial Performance (YoY): * Q2 FY26: Revenue was ₹400.1 crores (down 12%), EBITDA ₹61.6 crores (up 8%), Profit Before Tax (PBT) ₹21.2 crores (down 18%), and Profit After Tax (PAT) ₹15.4 crores (down 27%). Net Revenue Margin improved to 37.1% from 31.4%. * H1 FY26: Revenue was ₹853.5 crores (down 4%), EBITDA ₹123.3 crores (up 12%), PBT ₹45.9 crores (down 9%), and PAT ₹33.1 crores (down 27%). * Business Performance Outlook: * The bank expects continued improvement in customer ownership leading to increased average deposits. * A risk-calibrated approach for Digital Payment Services will continue, with a hopeful revival in Q3 FY26. * Improvement is anticipated in Cash Management Services during H2 FY26 due to better MFI-NBFC disbursals. * The traditional transaction business is impacted by regulatory changes, with an industry shift towards UPI and other digital channels. * Growing businesses contribute 56% of revenue, and a changing product mix is expected to improve margins. * Operating costs remained flat, with a focus on operational efficiency. * The bank plans to continue investing in technology, including migration to a new Core Banking Solution in FY26. * RBI's evaluation for a Small Finance Banking License is in progress. The bank is strategically shifting its focus from traditional transaction business towards higher-margin customer ownership and digital payments.
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Fino Payments Bank Limited filed this with the NSE as a statutory disclosure, categorised under investor presentation. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Fino Payments Bank Limited. Read the original for the full detail.