Paisalo Digital Ltd. (PAISALO) AI Stock Analysis

• Market Cap: ₹31.13B
• Dividend Yield: 0.29%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 2.00
• Revenue Growth: 11.75%
• EPS Growth: -6.52%
• Country: IN
• Employees: 2,409
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.57
• Shares Outstanding: 909,521,850
• 10 Day Avg. Volume: 422,023
• 30 Day Avg. Volume: 1,281,578
• PEG Ratio: -0.36
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 4.00
• P/FCF Ratio: -3.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹35.00 ▼(-3.74% Downside)

Paisalo Digital Ltd. has a solid financial performance with strong profitability but faces challenges with high leverage and negative cash flows. The technical analysis suggests mixed signals, with potential bearish momentum. Valuation is reasonable, but the low dividend yield may not attract income-focused investors.

Positive Factors

Profitability

Paisalo's reported strong profitability and healthy net margins reflect durable operating efficiency in its digital lending model. Sustained margins support reinvestment in underwriting and technology, improving competitiveness and resilience across credit cycles over the next 2-6 months.

Gross Margin Advantage

A structurally high gross margin (reported at ~100%) indicates an asset-light, high-margin revenue mix from lending activities. This margin profile provides meaningful operating leverage as loan volumes scale, enabling sustained profitability and funding for strategic initiatives.

Equity Base and ROE

The company’s solid equity base and positive ROE signal effective use of shareholder capital and a capital buffer versus peers. This strengthens funding optionality, reduces immediate solvency pressure, and supports measured growth without excessive shareholder dilution.

Negative Factors

High Leverage

A substantial debt reliance and high debt-to-equity ratio increase refinancing and interest-rate sensitivity. Elevated leverage can constrain lending growth if funding costs rise, amplify downside in stressed scenarios, and limit strategic flexibility over the medium term.

Negative Cash Flows

Consistently negative operating and free cash flows show profits are not converting into cash, forcing dependence on external financing to fund loan growth. This raises liquidity and refinancing risk and limits the firm's ability to self-fund investments or absorb credit shocks.

Moderate Revenue Growth

Moderate top-line growth indicates the loan-book and customer expansion pace may be limited. Slower revenue scaling can curb economies of scale, constrain margin improvement from operating leverage, and require more aggressive product or market initiatives to drive durable growth.

Paisalo Digital Ltd. Business Overview & Revenue Model

Company Description

Paisalo Digital Limited provides business loans, SME and MSME loans, and income generation loans for business/self-employment purpose in India. It offers income generation loans for purchasing seeds, fodder, cattle's, etc.; and Paisalo- Joint Liability Group loans for agriculture and allied sectors. The company was formerly known as S. E. Investments Limited and changed its name to Paisalo Digital Limited in January 2018. Paisalo Digital Limited was incorporated in 1992 and is headquartered in Agra, India.

How the Company Makes Money

Paisalo Digital Ltd. generates revenue primarily through the interest earned on the loans it disburses to customers. The company charges interest rates that vary based on the risk profile of borrowers and the type of loan products offered. In addition to interest, PAISALO may also generate fees from loan processing, late payment penalties, and ancillary services. The company has established partnerships with various financial institutions and technology platforms to expand its reach and enhance its lending capabilities, further contributing to its revenue growth. Additionally, as the company scales its operations and increases its customer base, the volume of loans disbursed is expected to drive higher revenues.

Paisalo Digital Ltd. Financial Statement Overview

Summary

Paisalo Digital Ltd. demonstrates strong profitability metrics with a high gross profit margin and healthy net profit margins. However, the company faces challenges with high leverage and negative cash flows, which could impact long-term sustainability.

Income Statement

Paisalo Digital Ltd. shows a strong profitability profile with a high gross profit margin consistently at 100% due to its business model. The net profit margin and EBIT margins are healthy, indicating efficient cost management. However, the revenue growth rate over recent years is moderate, suggesting potential challenges in expanding their top line further. The EBITDA margin remains robust, supporting operational stability.

Balance Sheet

The balance sheet reflects a significant reliance on debt, with a substantial debt-to-equity ratio, indicative of high leverage which could pose financial risk. Despite this, the company maintains a solid equity base with a positive return on equity, suggesting effective use of shareholder funds. The equity ratio is stable, reflecting a good proportion of assets funded by equity.

Cash Flow

Cash flow analysis reveals challenges, as operating cash flow is consistently negative, indicating potential liquidity issues. The free cash flow is also negative, which may impact future growth investments. However, the operating cash flow to net income ratio suggests that while net income is positive, it is not converting well into cash, pointing to cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	954.77M	7.67B	6.50B	4.73B	3.92B	3.46B
Gross Profit	670.90M	4.21B	3.74B	2.64B	2.08B	1.84B
EBITDA	2.16B	2.73B	2.45B	3.37B	2.93B	2.42B
Net Income	2.06B	2.00B	1.79B	936.19M	792.51M	579.80M
Balance Sheet
Total Assets	0.00	52.55B	41.23B	33.54B	27.58B	22.70B
Cash, Cash Equivalents and Short-Term Investments	0.00	1.05B	145.76M	291.11M	103.42M	479.85M
Total Debt	0.00	35.59B	26.55B	21.17B	16.76B	13.49B
Total Liabilities	-15.35B	37.20B	27.94B	21.91B	17.34B	14.05B
Stockholders Equity	15.35B	15.35B	13.29B	11.63B	10.23B	8.65B
Cash Flow
Free Cash Flow	0.00	-8.55B	-5.73B	-4.58B	-3.98B	-979.59M
Operating Cash Flow	0.00	-8.42B	-5.70B	-4.52B	-3.96B	-978.87M
Investing Cash Flow	0.00	-126.79M	26.02M	-50.74M	-30.82M	-716.00K
Financing Cash Flow	0.00	9.45B	5.53B	4.76B	3.62B	1.11B

Paisalo Digital Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PAISALO, the sentiment is Neutral. The current price of 36.36 is above the 20-day moving average (MA) of 33.85, above the 50-day MA of 35.39, and above the 200-day MA of 34.13, indicating a neutral trend. The MACD of -0.68 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 70.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PAISALO.

Paisalo Digital Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PAISALO	65 Neutral	₹31.13B	14.88	―	0.29%	11.75%	-6.52%
ARMANFIN	60 Neutral	₹16.97B	-1,538.01	―	―	-6.03%	-100.77%
UGROCAP	53 Neutral	₹20.47B	9.45	―	―	33.99%	11.65%
FUSION	48 Neutral	₹29.56B	-1.96	―	―	-31.94%	-1096.32%
SPANDANA	48 Neutral	₹22.27B	-1.67	―	―	-45.13%	-1646.01%
UTKARSHBNK	45 Neutral	₹24.20B	-2.34	―	2.82%	2.35%	-261.81%

Paisalo Digital Ltd. Corporate Events

Paisalo Digital Quadruples Touchpoints, Lifts Customer Base Sixfold in Three Years

Paisalo Digital Limited has sharply accelerated its expansion strategy, growing its nationwide touchpoint network nearly fourfold from 1,052 in FY23 to 4,380 as of Q2 FY26 across 22 states and union territories, including 402 branches, 2,585 distribution points and 1,393 business correspondents. Over the same period, its customer base has risen from about 2 million in FY23 to roughly 13 million in H1 FY26, supporting record Assets Under Management of ₹54,494 million at a three-year CAGR of around 25%, driven by highest-ever quarterly disbursements of ₹11,025 million, up 41% year-on-year in Q2 FY26. Despite this rapid scale-up, the NBFC is maintaining strong asset quality with collection efficiency at 98.4% and GNPA/NNPA at 0.81% and 0.65%, respectively, while expanding its workforce to 3,255 employees and prioritizing cross-selling through its branch and BC networks to build its Banking-as-a-Service franchise. The expanded footprint and disciplined growth reinforce Paisalo’s position as a key last-mile credit provider and trusted partner for small borrowers, strengthening its role in India’s financial inclusion agenda and enhancing long-term value for stakeholders.

Paisalo Digital’s Promoter Group Increases Stake, Signaling Confidence in Growth

Paisalo Digital Limited announced an increase in the Promoter Group’s shareholding to 41.75%, following a series of open-market acquisitions. This move demonstrates the promoters’ strong conviction in the company’s growth trajectory and aligns with its long-term strategy, reflecting deep confidence in its fundamentals. The increase in ownership from about 26% in FY19 to the current 41.75% underscores the promoter group’s belief in Paisalo’s business model and execution capabilities. This development supports the company’s mission of delivering responsible, tech-enabled credit to MSMEs, micro-enterprises, and underserved borrowers across India.

Paisalo Digital Schedules Q2 FY26 Earnings Call

Paisalo Digital Limited has announced an upcoming Earnings Conference Call scheduled for November 11, 2025, at 2:00 PM IST. The call will discuss the company’s standalone and consolidated unaudited financial results for the quarter ended September 30, 2025, and will feature key company executives. This event is part of the company’s ongoing efforts to maintain transparency and engage with stakeholders, potentially impacting investor confidence and market perception.

Paisalo Digital Ltd. Announces Committee Meeting for NCD Allotment

Paisalo Digital Ltd. has announced a meeting of its Operations and Finance Committee on November 6, 2025, to discuss and approve the allotment of Non-Convertible Debentures (NCDs) through a private placement. This move is part of the company’s strategy to raise capital, potentially impacting its financial structure and market positioning, while offering investment opportunities to stakeholders.