Paisalo Digital Limited

Financial Services — Credit Services · NSE

₹81.49+₹0.41 (+0.51%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Paisalo Digital Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Paisalo Digital Limited, a non-banking financial company, engages in providing loans through its financial products in India.

IndustryCredit Services

SectorFinancial Services

Employees3,076

Annual revenue₹941 Cr

How does it make money?

Turns over ₹941 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation. Each of its 3,076 employees supports ₹30.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹30.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 18.9% and earnings to grow about 20.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.9%

Est. earnings growth+20.6%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +256% while net margin moved -29% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+256%

Margin effect-29%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 29.4x already prices in growth
✗ P/E is 73% above its own historical median of 17.0x — expensive by its own standards

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

41/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

29.4x

3Y Median

17.0x

40 monthly readings · mean 20.1x · range 7.9x–43.9x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 73% above its 3y median of 17.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 73% above the peer median of 17.0x.

vs. its own history

Expensive

17.0x median over 40 months · +73%

vs. sector peers

Expensive

17.0x median of 4 peers · +73%

vs. generic bands

Fair

15x–35x

EV/EBITDA

32.0x

PEG

0.81

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 8.1% to 13.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 90.4 points, from 129.9% to 39.5%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 129.9% to 39.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 73% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 40% a year✓ 52.7% CAGR
Latest reported year was 20.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 37%✓ 39.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 11%✓ 13.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 17.0x✗ 29.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹7,661 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.4x

Fair

Fairly valued against the generic band

P/B Ratio

4.10x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.77

Profitable

Profitable on a per-share basis

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

5.1%

Weak

Low return on total capital employed

Debt/Equity

2.43x

High

High leverage

Revenue Growth (YoY)

20.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

28.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.12%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹798 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

21.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

63.7%

Good

Healthy core-business profitability

Net Margin

45.8%

Good

Strong bottom-line conversion

Current Ratio

76.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

83.9 / 77.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

36.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹264 Cr	₹657 Cr	₹770 Cr	₹941 Cr	+52.7%
EBITDA	₹343 Cr	₹254 Cr	₹294 Cr	₹371 Cr	+2.7%
EBITDA Margin	129.9%	38.6%	38.2%	39.5%	—
PAT (Net Profit)	₹94 Cr	₹179 Cr	₹200 Cr	₹237 Cr	+36.3%
EPS	₹2.1	₹3.87	₹2.23	₹2.62	+7.7%
ROE	8.1%	13.5%	13.0%	13.2%	—
ROCE	—	6.1%	5.3%	5.1%	—
Total Debt	₹2,117 Cr	₹2,655 Cr	₹3,559 Cr	₹4,360 Cr	+27.2%
Free Cash Flow	-₹458 Cr	-₹573 Cr	-₹854 Cr	-₹798 Cr	—

🟢 Revenue has grown at 52.7% a year over 3 years.

🟢 EBITDA has grown at 2.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 129.9% to 39.5% over 3 years (-90.4 pts).

🟢 PAT (Net Profit) has grown at 36.3% a year over 3 years.

🟢 EPS has grown at 7.7% a year over 3 years.

🟢 ROE has risen from 8.1% to 13.2% over 3 years (+5.2 pts).

🟡 ROCE has held roughly flat at 5.1% over 3 years.

🔴 Total Debt has grown at 27.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,300 Cr

Total Liabilities

₹4,507 Cr

Cash & Equivalents

₹147 Cr

Operating Cash Flow

-₹783 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

10.8%

Insider Holding

57.9%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹100

+22.7% vs CMP

Target Range

₹100 – ₹100

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

1 mixed5 general

Paisalo Digital Share Price News: Fundamentals and Peers

Univest, 08 Oct

Paisalo Digital to host virtual investor conference on September 29, 2026

scanx.trade, 29 Sept

Paisalo Digital Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Explained: Why Paisalo Digital shares hit 20% upper circuit on Wednesday

The Economic Times, 01 Jul

Do Paisalo Digital's (NSE:PAISALO) Earnings Warrant Your Attention?

Simply Wall Street, 04 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Paisalo Digital stock soars 20%, hits upper circuit after promoters raise stake to 46.72% in Q1FY27

Moneycontrol.com, 01 Jul

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 4 tripwires tripped — Valuation vs its own median of 17.0x · see Key things to watch ↑