Fino Payments Bank Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Fino Payments Bank Ltd filed with BSE on 18 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Fino Payments Bank reported a challenging Q1 FY27 in which its UPI P2M B2B business remained paused for recalibration while net revenue margin expanded to 42.8% and referral loan disbursals grew sharply to Rs 628 crores. Management described progress on the Small Finance Bank transition, including technology partner onboarding and leadership hiring plans, while EBITDA declined to Rs 43.1 crores from Rs 56 crores in Q4 FY26. The bank also reported growth in average total deposits, digitally active customers, and renewal income during the quarter.
Numbers mentioned
Referral loan disbursement: INR 628 crores (Q1 FY27)
p. 3
“During the quarter, referral loan disbursement increased to INR 628 crores, which is reaching 50% of the total disbursal in FY26.”
Ketan Merchant, page 3 of the filed PDF · View the filing
Referral loan disbursements: INR 1,285 crores (FY26)
p. 3
“Referral loan disbursements had reached INR 1,285 crores in FY26 and the momentum accelerated further in Quarter 1 FY27.”
Ketan Merchant, page 3 of the filed PDF · View the filing
Fee-based income: INR 234 crores (Q1 FY27)
p. 4
“Our USP, the existing fee-based income, which contributes over 75% of the revenue stood at INR 234 crores in Q1 FY27, and it remains our distinct advantage over other SFBs once we transit.”
Ketan Merchant, page 4 of the filed PDF · View the filing
Cost of funds: 1.4% (Q1 FY27)
p. 4
“Our cost of funds currently at 1.4% and our plans to enhance that will enable us to have a higher NIMs for secured assets.”
Ketan Merchant, page 4 of the filed PDF · View the filing
Average CASA balance: INR 1,280 (Q1 FY27)
p. 4
“The average CASA balance stood at INR 1,280, while the average total deposit increased 12% Y-o-Y to INR 2,772 crores and renewal income grew by 7% year-on-year to INR 67.5 crores during the quarter.”
Ketan Merchant, page 4 of the filed PDF · View the filing
Average total deposit growth: 12% Y-o-Y to INR 2,772 crores (Q1 FY27)
p. 4
“The average CASA balance stood at INR 1,280, while the average total deposit increased 12% Y-o-Y to INR 2,772 crores and renewal income grew by 7% year-on-year to INR 67.5 crores during the quarter.”
Ketan Merchant, page 4 of the filed PDF · View the filing
New accounts added: 8.4 lakh (Q1 FY27)
p. 4
“Customer acquisition remained healthy, and we added 8.4 lakh new accounts in this quarter, taking our total account base to 1.83 crore.”
Ketan Merchant, page 4 of the filed PDF · View the filing
Total account base: 1.83 crore (Q1 FY27)
p. 4
“Customer acquisition remained healthy, and we added 8.4 lakh new accounts in this quarter, taking our total account base to 1.83 crore.”
Ketan Merchant, page 4 of the filed PDF · View the filing
Digitally active customers: 64.6 lakhs, up 22% Y-o-Y (Q1 FY27)
p. 5
“Digitally active customers increased by 22% year-on-year to 64.6 lakhs, while active FinoPay, which is our app customers, grew even faster at 38% to 8.4 lakhs.”
Ketan Merchant, page 5 of the filed PDF · View the filing
Active FinoPay app customers: 8.4 lakhs, up 38% (Q1 FY27)
p. 5
“Digitally active customers increased by 22% year-on-year to 64.6 lakhs, while active FinoPay, which is our app customers, grew even faster at 38% to 8.4 lakhs.”
Ketan Merchant, page 5 of the filed PDF · View the filing
Net revenue margin: 42.8% (Q1 FY27)
p. 6
“Despite lower revenues, our net revenue margin expanded to its highest quarterly value of 42.8%, improving 275 basis points sequentially and 925 basis points year-on-year.”
Anup Agarwal, page 6 of the filed PDF · View the filing
EBITDA: INR 43.1 crores (Q1 FY27)
p. 6
“As expected, EBITDA declined to INR 43.1 crores from INR 56 crores in Q4 FY26.”
Anup Agarwal, page 6 of the filed PDF · View the filing
CASA contribution to revenue: 54%, up from 45% (Q1 FY27 vs Q4 FY26)
p. 6
“CASA increased its contribution to the revenue from 45% in Q4 FY26 to 54% in the current quarter, reflecting the growing strength of our liability franchise.”
Anup Agarwal, page 6 of the filed PDF · View the filing
Renewal income: INR 67.5 crores, up 7% Y-o-Y (Q1 FY27)
p. 6
“Renewal income for the quarter remained healthy at INR 67.5 crores, a growth of 7% year-on-year.”
Anup Agarwal, page 6 of the filed PDF · View the filing
Newly acquired customers becoming UPI active same quarter: 68% (Q1 FY27)
p. 6
“We also witnessed an encouraging trend of newly acquired customers becoming UPI active within the same quarter which stood at 68%.”
Anup Agarwal, page 6 of the filed PDF · View the filing
Referral loan disbursals growth: 214% Y-o-Y to INR 628 crores (Q1 FY27)
p. 6
“Referral loan disbursals surged 214% on year-on-year to INR 628 crores, nearly 50% of the total disbursals in FY26, indicating growing demand for credit in our banking ecosystem and our target customer segment.”
Anup Agarwal, page 6 of the filed PDF · View the filing
Total throughput: declined 10% Y-o-Y, grew 3% sequentially (Q1 FY27)
p. 7
“On a year-on-year basis, the total throughput declined by 10%, largely due to the strategic recalibration of our UPI P2M B2B business segment and traditional cash transaction business hit by the industry's continued migration from cash to UPI, along with our focus-conscious decision to focus on high-quality, more active merchants.”
Anup Agarwal, page 7 of the filed PDF · View the filing
B2B CMS throughput: INR 18,000 crores, up 26% sequentially (Q1 FY27)
p. 7
“In the B2B CMS segment, throughput grew 26% sequentially to INR 18,000 crores as we further broadened our client base.”
Anup Agarwal, page 7 of the filed PDF · View the filing
UPI throughput: INR 60,000 crores, up 14% Y-o-Y (Q1 FY27)
p. 7
“UPI throughput grew 14% year-on-year to INR 60,000 crores and digitally active customers for the month of June '26 stood at 65 lakhs, a significant growth of 22% year-on-year compared to June '25.”
Anup Agarwal, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
SFB readiness submission to RBI — submit readiness to RBI · end of Quarter 4 FY27
stated firmly by Ketan Merchant
p. 4
“We continue to expect that all required milestones will be completed within the prescribed 18-month timeline, and we remain on course to submit our readiness to the Reserve Bank of India by end of Quarter 4 FY27.”
Ketan Merchant, page 4 of the filed PDF · View the filing
Senior leadership hiring — join key leadership positions · end of calendar year
stated firmly by Ketan Merchant
p. 4
“Individuals for key leadership positions have been identified, and we expect these senior executives to join us by end of the calendar year.”
Ketan Merchant, page 4 of the filed PDF · View the filing
Technology stack for customer loan journey — ready · Feb '27
stated firmly by Ketan Merchant
p. 4
“In parallel, technology stack for the end-to-end customer loan journey is under development and is expected to be ready by Feb '27.”
Ketan Merchant, page 4 of the filed PDF · View the filing
UPI P2M B2B relaunch — relaunch · Quarter 4 FY27
stated conditionally by Ketan Merchant
p. 5
“We are preparing to relaunch our high-growth B2B UPI P2M segment. However, this would depend on the ecosystem and other developments, which could result in the relaunch tentatively in Quarter 4 FY27.”
Ketan Merchant, page 5 of the filed PDF · View the filing
Cost of funds advantage vs other SFBs — approximately 300 basis points advantage
stated as an aspiration by Anup Agarwal
p. 6
“Our cost of funds further strengthens our liability franchise as we expect this to translate in approximately 300 basis points advantage as compared to other small finance banks in future.”
Anup Agarwal, page 6 of the filed PDF · View the filing
Portfolio yield for SFB lending — around 14%
stated as an aspiration by Anup Agarwal
p. 8
“So, which will be having a blending mix of gold loan also, housing loan, LAP, MSME secured lending. So considering all that, we are looking at a blended portfolio yield of 14%, which will be better off than a lot of competitive players in the market, which are largely NBFCs in our target segment.”
Anup Agarwal, page 8 of the filed PDF · View the filing
NIMs for SFB — 8% to 9%
stated as an aspiration by Ketan Merchant
p. 10
“So from an SFB perspective, with the kind of asset products which we are looking at, we expect our NIMs, and that may not answer your ROE question fully, but at least NIMs, which is highest in the industry, which we are looking at anywhere in the range of 8% to 9%.”
Ketan Merchant, page 10 of the filed PDF · View the filing
SFB opex burden — around INR 10 crores · this year
stated firmly by Anup Agarwal
p. 12
“So, in terms of the burden on opex this year, we are anticipating anything around INR10 crores on this year's P&L in terms of the SFB opex which includes hiring, which includes all the other related opex for the bank.”
Anup Agarwal, page 12 of the filed PDF · View the filing
New branches to be opened — 40 new branches · year 1
stated firmly by Ketan Merchant
p. 15
“So we intend to open in year 1, 40 new branches as well, and that is part of our plan as well.”
Ketan Merchant, page 15 of the filed PDF · View the filing
Credit deposit ratio — around 70% · first 3 years
stated firmly by Anup Agarwal
p. 15
“So currently, as per our business plan, we are looking at 2 main ratios. One is the credit deposit ratio, we are looking at around 70%.”
Anup Agarwal, page 15 of the filed PDF · View the filing
CASA ratio — around 65%
stated firmly by Anup Agarwal
p. 15
“So we are looking at a CASA ratio of around 65%.”
Anup Agarwal, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the SFB will target a 90% secured book with a blended portfolio yield of around 14%, better than competing NBFCs.
Answered by Anup Agarwal
Asked by Ankit: What rates are being offered on referral gold loans, LAP and housing loans, and how does the target blended yield compare to NBFC competitors?
p. 8
“And second, what we are looking at is 90% secured book of lending for our SFB portfolio with an average portfolio yield of around 14%.”
Anup Agarwal, page 8 of the filed PDF · View the filing
Management said Fino would qualitatively stand to benefit once the B2B UPI P2M business is relaunched, though exact numbers are unclear.
Answered by Tejas Maniar
Asked by Ankit: Would Fino benefit if the proposed MDR on UPI transactions above Rs 2,000 comes through?
p. 9
“Okay. So in that case, my answer is a definite yes.”
Tejas Maniar, page 9 of the filed PDF · View the filing
Management said Fino Paytech and Fino Payments Bank operate at arm's length and there is no bearing of holding company investment activity on the bank.
Answered by Ketan Merchant
Asked by Ankit: Could BPCL's stake in Fino Paytech being liquidated impact Fino Payments Bank?
p. 9
“So there is no bearing on any activities of holding company investment on the Fino Payments Bank.”
Ketan Merchant, page 9 of the filed PDF · View the filing
Management said a large part of the investment, including the core banking migration, is already done, with further modules to be added, and the tech transition should be complete after FY27.
Answered by Anup Agarwal
Asked by Yash Singh: How much of the SFB technology investment is behind the bank, and will tech costs moderate after FY27?
p. 10
“We have to add a few modules relating to our lending business, which is like LOS, LMS other related modules in terms of the technology.”
Anup Agarwal, page 10 of the filed PDF · View the filing
Management said it is too early to give specific guidance but confirmed the earlier 20%-plus ROE guidance still holds.
Answered by Anup Agarwal
Asked by Yash Singh: What is the future ROE guidance and top-line boost expected from the SFB transition by FY30?
p. 10
“I think currently, we are in the consolidation phase. Maybe as we move along, we'll get more clarity around this thing.”
Anup Agarwal, page 10 of the filed PDF · View the filing
Management outlined hiring, technology and governance workstreams targeted for completion by Q4, and said there is no noncompete since referral customers already belong to the bank.
Answered by Anup Agarwal
Asked by Gurvinder Juneja: What are the exact steps and timelines to become operational as an SFB, and is there a noncompete on referral customers once the bank becomes an SFB?
p. 11
“We aim to roll out everything by end of Q4 and provide the operational readiness to RBI to give us the further approval to move ahead as an SFB.”
Anup Agarwal, page 11 of the filed PDF · View the filing
Management clarified the hiring referenced was for the credit vertical, and the CEO search is being handled by the Board with RBI in the loop.
Answered by Ketan Merchant
Asked by Divyansh Gupta: Is the leadership hiring for the CEO role or one level below, and what is the CEO search status?
p. 12
“So the hiring, which we were essentially referring to was the hiring which we are doing for small finance bank. This is the credit vertical, which we are essentially making of.”
Ketan Merchant, page 12 of the filed PDF · View the filing
Management estimated around Rs 10 crores of SFB-related opex burden this year.
Answered by Anup Agarwal
Asked by Divyansh Gupta: How much opex burn should be expected while building toward SFB launch, independent of the B2B business?
p. 12
“So, in terms of the burden on opex this year, we are anticipating anything around INR10 crores on this year's P&L in terms of the SFB opex which includes hiring, which includes all the other related opex for the bank.”
Anup Agarwal, page 12 of the filed PDF · View the filing
Management said a small finance bank cannot carry out BC activities for other banks by regulation, but did not commit to a definitive timeline or plan for the BC business sale, and said the HoldCo/OpCo structure remains unchanged.
Answered by Ketan Merchant
Asked by Nitin: Are the sale of the BC business and a reverse merger RBI requirements for SFB approval?
p. 14
“And by virtue of the regulation, a small finance bank cannot carry out BC activities for other banks.”
Ketan Merchant, page 14 of the filed PDF · View the filing
Management said over 90% of the liability book behaves as stable core deposits based on behavioral studies, reducing ALM risk.
Answered by Ketan Merchant
Asked by Harsh: How does Fino manage asset-liability mismatch given a granular, short-term liability book funding longer-tenure secured loans?
p. 14
“Our typical book, if I do a behavioral study across out there, around 90% plus. Mostly our book is SA and a very small component is CA given it is.”
Ketan Merchant, page 14 of the filed PDF · View the filing
Management said the current plan is organic, but inorganic opportunities would be considered if attractive ones arise.
Answered by Ketan Merchant
Asked by Sachi: What is the status and timeline of the BC business sale, and is any M&A or strategic investment being considered for the SFB transition?
p. 16
“At current stage, our plan, which we have put for our FY30 is an organic plan.”
Ketan Merchant, page 16 of the filed PDF · View the filing
Risks flagged
UPI P2M B2B business paused for recalibration following the February 2026 event
p. 3
“Besides the event of Feb '26, one of our most profitable B2B business has been paused for recalibration, and it will take at least next couple of quarters for the relaunch.”
Ketan Merchant, page 3 of the filed PDF · View the filing
EBITDA decline due to paused B2B business and moderating cash transaction business
p. 6
“As expected, EBITDA declined to INR 43.1 crores from INR 56 crores in Q4 FY26. This was largely due to the pausing of our UPI P2M B2B business and digital acceleration moderating our cash transaction business and our continued investment in technology and risk management.”
Anup Agarwal, page 6 of the filed PDF · View the filing
Traditional transaction business facing industry headwinds from cash-to-digital migration
p. 7
“Our traditional transaction business, which forms of remittance, micro ATM, AePS saw 13% sequential revenue decline as it continued to face industry headwinds due to growing digital adoption in Bharat.”
Anup Agarwal, page 7 of the filed PDF · View the filing
B2B CMS segment facing pricing challenges
p. 7
“This also resulted in 5% revenue growth in this segment compared to previous quarter as it is facing challenges on the pricing.”
Anup Agarwal, page 7 of the filed PDF · View the filing
Uncertainty over MDR clarification affecting B2B UPI P2M relaunch
p. 8
“So once we recalibrate that, along with some of the larger strategies for the digital payments, we will be in a better position to answer because we are actually waiting for some clarification on the amount where this will be...”
Tejas Maniar, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.