Financial Results Summary

Revenue Performance

  • Revenue declined by 32% YoY to ₹306.9 crore in Q1 FY'27
  • Net revenue stood at ₹131.2 crore, down by 14% YoY and 4% QoQ
  • Decline primarily due to recalibration of Digital Payments Services – B2B UPI P2M vertical and cash-driven transaction business

Margin Analysis

  • Net revenue margin expanded by 925 bps YoY & 275 bps QoQ to 42.8% in Q1 FY'27
  • Contribution from high-margin CASA segment increased to 54%
  • EBITDA margin remained steady at 14.0% compared to 13.6% in Q1'26 and 16.5% in Q4'26

Throughput Metrics

  • Total throughput decreased by 10% YoY but increased 3% QoQ in Q1 FY'27 to ₹1.11 lakh crore
  • UPI throughput grew by 14% YoY and 2% QoQ in Q1 FY'27 to ₹60.1k crore
  • The Bank processed 94.7 crore transactions in Q1 FY'27

Customer Ownership & Deposits

  • CASA customer base improved to 1.83 crore, an increase of 22% YoY
  • 8.4 lakh new CASA accounts were opened in Q1'27
  • Average total deposits increased by 12% YoY to ₹2,772 crore
  • Renewal income increased by 7% YoY to ₹67.5 crore

Business Segment Performance

  • Digital Payments Services remained non-operational in Q1 FY'27 due to strategic recalibration; relaunch expected in Q4 FY'27
  • UPI impacted transaction business (Remittance, MATM & AePS) as revenue declined 50% YoY and throughput decreased by 44% YoY
  • CMS segment saw recovery as throughput improved 26% sequentially to ₹18,092 crore
  • Loan referral segment disbursals surged 214% YoY to ₹628 crore, nearly 50% of the total disbursals in FY'26

Small Finance Bank Transition

  • Significant progress made in hiring senior credit professionals and onboarding key technology providers for lending operations, loan management system (LMS), and credit underwriting
  • The Bank received 'In-principle' approval from the RBI to convert into a Small Finance Bank on 5th December 2025
  • Fino remains firmly on track to meet the required conditions within the stipulated timeline

Management Commentary

Mr. Ketan Merchant, Interim Chief Executive Officer:

"Q1 FY'27 is the beginning of the consolidation phase of Fino, wherein the focus is on retail business, building small finance bank and enhancing low-cost liabilities through aggressive customer acquisition and referral lending business. Retail focus resulted in 22% YoY increase in total current and savings accounts with 8.4 lakh new customer accounts being opened in the quarter. We remain committed to building a differentiated, AI driven technology-led liability first banking franchise leading to value creation for all stakeholders in the long run."

Mr. Anup Agarwal, Interim Chief Financial Officer:

"In Q1 FY'27, the quality and resilience of our franchise continued to improve, as reflected in the 12% YoY growth in average total deposits to ₹2,772 crore. Though revenue and profitability dipped due to recalibration of B2B UPI P2M services, we posted highest quarterly net revenue margin of 42.8%. Our growing liability franchise and structural funding advantage which provides a strong foundation, contributed 54% to the total revenue. We remain focused on disciplined investments in technology, governance and developing SFB capabilities to scale the business while maintaining an asset-light and capital efficient model."

Corporate Background

Fino Payments Bank Ltd. (a subsidiary of Fino Paytech Ltd.) is a technology-led, asset-light digital bank serving emerging India. Backed by marquee investors including ICICI Group, BPCL, Blackstone, LIC, and IFC, Fino Bank operates a high-volume, low-cost model focused on financial inclusion.