LIC-owned NBFC stock Paisalo Digital jumps 9% after Q1 results 2025

Shares of LIC-backed non-banking finance company (NBFC) Paisalo Digital Ltd surged nearly 9 percent in intra-day trade on Tuesday, July 22, after the company announced a healthy set of earnings for the first quarter of FY26. The smallcap stock hit a high of ₹33.80 in an otherwise volatile session.

Q1FY26 Earnings: Profit Rises Despite Higher Costs

For the quarter ended June 2025, Paisalo Digital reported a 13.25 percent year-on-year (YoY) increase in net profit to ₹47 crore, up from ₹41.5 crore in the corresponding period last year. The company also posted a 17.2 percent YoY rise in total income at ₹218.71 crore, compared to ₹186.55 crore in Q1FY25.

Interest income stood at ₹200.88 crore, marking a 21.7 percent growth from the year-ago figure of ₹165.09 crore. However, fee and commission income declined slightly to ₹17.37 crore from ₹20.06 crore.

Despite rising costs, including higher finance expenses and impairment charges, Paisalo delivered a 13.9 percent YoY increase in profit before tax (PBT), which came in at ₹63.60 crore, compared to ₹55.80 crore in the same quarter last year. Total expenses rose to ₹155.11 crore, from ₹130.75 crore in Q1FY25.

Strategic Expansion Through SBI Co-Lending

Paisalo also expanded its lending footprint during the quarter. In late June 2025, the company entered into a co-lending agreement with the State Bank of India (SBI) to jointly finance loans to the Small and Medium Enterprises (SME) segment. This initiative builds on its previous partnership with SBI and is aimed at driving financial inclusion by offering low-cost credit to priority sectors.

Paisalo said the collaboration reflects its long-term strategy to deliver inclusive credit solutions to underserved communities through a strong institutional partnership model.

LIC and SBI Life Maintain Their Stakes

As per the latest BSE shareholding data, both Life Insurance Corporation of India (LIC) and SBI Life Insurance have retained their strategic stakes in the company during the June 2025 quarter. LIC continues to hold 6.2 crore shares, while SBI Life holds 7.75 lakh shares, with no changes from the previous quarter. These holdings date back to September 2020, signalling continued institutional confidence in Paisalo’s business.

Stock Price and Performance

Following the earnings announcement, Paisalo Digital stock surged to ₹33.80, up 9 percent intraday. Despite the recent uptick, the stock remains over 54 percent below its 52-week high of ₹73.14 touched in July 2024. It is currently hovering near its 52-week low of ₹29.40, which was hit in June 2025.

The stock has had a tough year, with a 57 percent erosion in investor wealth over the past 12 months. However, signs of recovery have emerged: the stock is up 2.6 percent so far in July, following a 3 percent gain in June. Prior to this, the stock had posted six consecutive months of declines.

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