Fino Payments Bank Records 23rd Straight Profitable Quarter amid Industry Headwinds

Wednesday, October 29, 2025 – Fino Payments Bank Limited announced its financial results for the quarter ended September 30th, 2025 (Q2 FY26 & H1 FY26) today. The Bank continued to navigate industry-wide headwinds in Q2 FY26 while strengthening its focus on CASA accounts.

Key Highlights:
Throughput:

• Q2 FY26 - Total throughput increased 7% YoY to Rs 1,14,574 crores. Digital throughput at Rs 62,771 crores, up 32% YoY.

• H1 FY26 - Total throughput increased 12% YoY to Rs 2,38,116 crores. Digital throughput at Rs 1,30,643 crores, up 43% YoY.

PBT & Margin Expansion:

• PBT dropped by 14% QoQ for Q2 FY26 on account of momentarily slow-down in digital business. In H2 FY26 the digital payment turnover is expected to gain enhanced momentum over H1 FY26.

• Change of product mix leaning towards higher margin products resulted in Margin expanding by 5.75% YoY to 37.1%.

• Operational efficiency led to improvement in EBITDA margin by 2.8% YoY to 15.4%.

Ownership Business:

• Bank’s CASA accounts reached ~1.6 crores, adding over 9.1 lakh accounts in the quarter and 15.9 lakh accounts for the first half year.

• In Q2 FY26, 9,893 accounts were opened per day, an increase of 11% YoY.

• For Q2 FY26, renewal income increased 36% YoY to ₹62 crores and for H1

• FY26, it jumped by 37% to Rs 118 crores, reflecting strong trust in the product and services.

• Average deposits were up by 36% YoY to Rs 2,306 crores with 1.9% Cost of Funds in Q2 FY26

Digital Adoption:

• Daily UPI transactions grew by 33% YoY, ~1 Cr in Q2 FY26. 

• In September ’25, more than 57 lakh customers were digitally active compared to 45+ lakh in September ‘24.

Traditional Business:

• Traditional Business (DMT + AePS + MATM) saw ~46% YoY decline in revenue, post the Nov’24 regulatory changes specifically in the direct money transfer business.

• Bank continues to focus on “OFF US” to “ON US” conversion to ensure long term sustainability of the business model.

Rishi Gupta, Managing Director & CEO, mentioned, “Our focused execution of Transaction, Acquisition and Monetization (TAM) strategy kept us sustain headwinds. We maintained a risk calibrated approach while being resilient and strengthening our digital rail roads. As such we expect H2 FY26 to have enhanced momentum in Digital Payment Services business. Despite the slow pace, our core financial fundamentals remain stable for long term growth.”

Ketan Merchant, Chief Financial Officer said, “Despite a challenging business environment, our margins improved by 5.75% on YoY basis. Our EBITDA margin increased by 2.8% YoY to 15.4%. In the evolving regulatory environment our focus has shifted towards enhancing bottom line through increased margin and execution of risk calibrated approach.”

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