Results · Financial Services

Fino Payments Bank posts net loss in Q1 FY27

By Startup Enthusiast · 13 August 2026

What they do

Fino Payments Bank is a payments bank offering digital and cash-based financial services

It reported a net loss of ₹13.7 crore for Q1 FY27, compared to a profit of ₹17.8 crore a year ago

The loss follows a strategic shift to focus on retail banking and transition to a small finance bank

Fino Payments Bank reported a net loss of ₹13.7 crore for the first quarter of FY27, compared to a net profit of ₹17.8 crore in the same quarter last year.
The company's total income fell 32.3% year-on-year to ₹306.9 crore from ₹453.5 crore.
Other income dropped 40.2% to ₹234.6 crore, while interest income rose 18.4% to ₹72.2 crore.
EBITDA declined 30% year-on-year to ₹43.1 crore, and fell 23% sequentially from Q4 FY26.
The revenue decline was blamed on a recalibration of digital payment services, including the B2B UPI P2M vertical and cash-driven transaction business.
Digital payment services revenue plunged 99% to just ₹50 lakh, from 23% of total revenue a year ago.
The company expects to relaunch digital payment services by Q4 FY27.
Former CEO Rishi Gupta was arrested in February 2026 on GST evasion charges, and interim CEO Ketan Merchant took charge.

The loss marks a sharp reversal from the ₹7.1 crore profit in Q4 FY26.
The company is in a consolidation phase after receiving in-principle RBI approval in December 2025 to transition into a small finance bank.
Loan referral disbursals surged 214% year-on-year to ₹628 crore, nearly half of FY26's total, showing growth in retail lending.
The share price rose 1.9% to ₹163.75 on the day of the report, suggesting the market may have expected worse results.

Fino Payments Bank is a payments bank that offers digital and cash-based financial services.
It operates through a network of banking correspondents and digital channels.
The company generates revenue from digital payment services, transaction fees, and interest income.
It also runs a loan referral business, where it refers customers to partner lenders.
The bank is transitioning to a small finance bank after receiving RBI approval in December 2025.
Its services include UPI payments, cash deposits, remittances, and savings accounts.

The company plans to relaunch digital payment services by Q4 FY27.
It is focusing on retail business, building a small finance bank, and low-cost liabilities.
The Q1 FY27 is described as the start of a consolidation phase.