Q1 2027 Fino Payments Bank Ltd Earnings Call Transcript
Key Points
- Referral loan disbursements surged 214% year-on-year to INR628 crore in Q1 FY27, nearly 50% of FY26's total, indicating strong momentum in the lending ecosystem.
- Net revenue margin expanded to a record 42.8%, up 275 basis points sequentially and 925 basis points year-on-year, reflecting improved revenue quality.
- Customer acquisition remained robust with 8.4 lakh new accounts added, bringing the total base to 1.83 crore, and digitally active customers grew 22% year-on-year to 64.6 lakhs.
- Cost of funds remains low at 1.4%, providing a structural advantage that is expected to translate into a 300 basis point funding advantage over other small finance banks.
- The company is on track to meet RBI conditions for Small Finance Bank transition, with all milestones expected to be completed within the 18-month timeline and readiness submission by Q4 FY27.
- Q1 FY27 was described as one of the toughest quarters in the bank's history, with the B2B UPI P2M business paused for recalibration, impacting revenue.
- EBITDA declined to INR43.1 crore from INR56 crore in Q4 FY26, largely due to the paused B2B business and continued investments in technology and risk management.
- Total throughput declined 10% year-on-year, driven by the strategic recalibration of UPI P2M B2B and the industry-wide shift from cash to UPI, affecting traditional transaction business.
- The relaunch of the high-growth B2B UPI P2M segment is uncertain and tentatively expected only in Q4 FY27, dependent on ecosystem developments.
- The traditional transaction business saw a 13% sequential revenue decline due to industry headwinds from digital adoption, and the B2B CMS segment faces pricing challenges.
Ladies and gentlemen, good day, and welcome to Fino Payments Bank Limited Q1 FY27 earnings conference call hosted by Go India Advisors LLP. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nikhar Arora from Go India Advisors LLP. Thank you, and over to you, sir.
Thank you, Palak. Good afternoon, everyone, and welcome to the Q1 FY27 earnings call of Fino Payments Bank. We have on call Mr. Ketan Merchant, Interim Chief Executive Officer; Mr. Anup Agarwal, Interim Chief Financial Officer; and Mr. Tejas Maniar, Chief Digital and Liabilities Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must, therefore, be viewed in conjunction with the risks that the company faces.
May I now request the management to take us through the financials and the business outlook, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
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