Paisalo Digital Ltd. (PAISALO) AI Stock Analysis

• Market Cap: ₹34.72B
• Dividend Yield: 0.3%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.93
• 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: 902,118,300
• 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): 3.98
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹34.00 ▼(-1.76% Downside)

Paisalo Digital Ltd. receives a moderate overall score due to strong profitability but is weighed down by high leverage and negative cash flows. The bearish technical indicators further impact the score, while the valuation suggests moderate pricing with limited dividend yield.

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 high margins, but faces challenges with high leverage and negative cash flows, which pose risks to financial stability.

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: Negative
• Last Price: 34.61
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 34.61 is below the 20-day moving average (MA) of 36.19, below the 50-day MA of 37.67, and below the 200-day MA of 34.61, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 48.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PAISALO.

Paisalo Digital Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARMANFIN	68 Neutral	₹17.06B	274.81	―	―	-6.03%	-100.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PAISALO	56 Neutral	₹34.72B	16.83	―	0.30%	11.75%	-6.52%
UGROCAP	53 Neutral	₹20.56B	11.39	―	―	33.99%	11.65%
FUSION	48 Neutral	₹28.83B	-1.47	―	―	-31.94%	-1096.32%
SPANDANA	48 Neutral	₹21.54B	-1.23	―	―	-45.13%	-1646.01%
UTKARSHBNK	45 Neutral	₹28.88B	―	―	2.62%	2.35%	-261.81%

Paisalo Digital Ltd. Corporate Events

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.

Paisalo Digital Confirms Full Utilization of Commercial Paper Proceeds

Paisalo Digital Ltd. has announced the utilization of funds from its recently issued Commercial Papers for the quarter ending September 30, 2025. The company confirmed that the proceeds were fully utilized for the intended purposes as outlined in their disclosure documents, and they have adhered to all relevant listing conditions, reinforcing their commitment to regulatory compliance.

Paisalo Digital Appoints New Internal Ombudsman

Paisalo Digital Ltd. has announced the appointment of Mr. Rajesh Kumar Singh as the Internal Ombudsman, in line with the Reserve Bank of India’s directives. This appointment is expected to strengthen the company’s regulatory compliance and enhance its governance framework, potentially improving stakeholder confidence.

Paisalo Digital Appoints New Internal Ombudsman to Strengthen Governance

Paisalo Digital Ltd. has announced the appointment of Mr. Rajesh Kumar Singh as the Internal Ombudsman, effective from September 1, 2025. This move aligns with the Reserve Bank of India’s directives and is expected to enhance the company’s compliance and governance framework, potentially strengthening its position in the financial services sector.