Paisalo Digital Reports Impressive Growth in Q4 FY25
Paisalo Digital, a non-banking finance company owned by the Life Insurance Corporation of India (LIC), has announced a remarkable 25% increase in its standalone net profit for the fourth quarter of fiscal year 2024-2025 (Q4 FY25). The profit surged to ₹45 crore, up from ₹36 crore during the same period last year, showcasing the company’s strong financial performance.
Strong Financial Position and Rising Interest Income
The company’s net interest income (NII) demonstrated substantial growth, reaching ₹96 crore, which is a 41% rise year-on-year. This increase reflects a robust difference between interest earned and interest expended. Additionally, overall interest income for the March 2025 quarter was reported at ₹178.09 crore, surpassing last year’s ₹147.73 crore.
- NII for Q4 FY25: ₹96 crore (+41% YoY)
- Overall Interest Income: ₹178.09 crore (↑ from ₹147.73 crore)
Managing Non-Performing Assets Effectively
Despite the impressive growth, Paisalo Digital reported its Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) figures at 0.99% and 0.76%, respectively, as of Q4 FY25. In comparison, the previous year’s figures were significantly lower at 0.21% and 0.02%. To address potential risks, the company is enhancing its debt management infrastructure, as stated in their investor presentation.
Record Customer Growth and Expanding Footprint
In this quarter, Paisalo Digital achieved its highest-ever assets under management (AUM), totaling ₹5232.8 crore, which is a 14.10% increase from ₹4,586 crore in Q4 FY24. The company also welcomed 1.52 million new customers during this period, contributing to a total of 5.16 million new customers for FY25. As of Q4 FY25, their customer base has grown to 9.45 million, compared to 4.29 million the previous year.
- AUM in Q4 FY25: ₹5232.8 crore
- Total Customers: 9.45 million (↑ from 4.29 million)
Moreover, Paisalo Digital expanded its geographical reach, increasing its touchpoints from 2,455 to 3,565 across 22 states within the year. In Q4 alone, the company added 27 new touchpoints, comprising 351 branches, 1,900 distribution points, and 1,314 Customer Service Points (CSPs).
Dividend Announcement and Stakeholding
In a positive move for shareholders, the Board of Directors has proposed a 10% dividend—amounting to ₹0.10 per equity share with a face value of ₹1.00 for FY25. This recommendation awaits approval from the company’s members at the upcoming Annual General Meeting (AGM).
As of March 2025, LIC holds 77,59,511 shares in Paisalo Digital, which represents a 1.17% stake in the company.
In conclusion, Paisalo Digital’s significant financial growth, expanding customer base, and robust asset management position it well for continued success in the competitive finance sector.
