Paisalo Digital Ltd. (PAISALO) AI Stock Analysis

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Paisalo Digital Ltd.

(NSE:PAISALO)

Select Model

Rating:58.5Neutral

Price Target:INR 83.00▲(5.32% Upside)

Action:reiterated

Date:09/29/26

The score is primarily constrained by weaker cash flow reliability and rising leverage risk despite strong reported revenue/earnings and healthy margins. Technicals are mixed (longer-term uptrend but softer near-term), and valuation looks somewhat expensive with a very low dividend yield, limiting downside support.

Positive Factors

Strong revenue and earnings growthStrong expansion in revenue and earnings indicates meaningful business growth and increasing lending activity across the company’s target markets. If this trajectory persists, it can broaden the earnings base, support reinvestment, and strengthen the company’s position in underserved retail credit.

Negative Factors

Rising leverageDebt has grown faster than equity, increasing the company’s dependence on borrowing to support its lending business. Higher leverage can reduce financial flexibility and make earnings more sensitive to credit conditions, while also limiting the capacity to absorb portfolio or funding pressure.

Paisalo Digital Ltd. (PAISALO) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 71.88B
Dividend Yield: 0.13%
Average Volume (3M): 644.38K
Price to Earnings (P/E): 26.9
Beta (1Y): 1.37
Revenue Growth: 23.67%
EPS Growth: 26.77%
Country: India
Employees: 3,076
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

Paisalo Digital Ltd. Business Overview & Revenue Model

Company Description

Paisalo Digital Limited, an Indian financial services firm, offers a variety of credit solutions. These include business loans, along with financing specifically for Small and Medium Enterprises (SMEs) and Micro, Small, and Medium Enterprises (MSMEs)...

How the Company Makes Money

Paisalo Digital primarily makes money through its lending business as an NBFC. Its core revenue stream is interest income earned on loans it disburses to retail borrowers (small-ticket/underbanked segments). In addition to interest, the company earns...

Paisalo Digital Ltd. Financial Statement Overview

Summary

Strong income statement (78) with solid margins and a large FY2026 growth jump, but overall fundamentals are held back by rising leverage on the balance sheet (54) and historically weak/volatile cash conversion (cash flow score 42) despite a sharp FY2026 rebound.

Income Statement

78Positive

Balance Sheet

54Neutral

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	10.39B	9.43B	7.67B	6.50B	4.73B	3.92B
Gross Profit	5.76B	5.44B	4.21B	3.74B	2.64B	2.08B
EBITDA	3.73B	3.31B	2.74B	2.45B	3.37B	2.93B
Net Income	2.65B	2.37B	2.00B	1.79B	936.19M	792.51M
Balance Sheet
Total Assets	76.05B	63.00B	52.55B	41.23B	33.54B	27.58B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.50B	1.05B	145.76M	291.11M	103.42M
Total Debt	54.81B	43.60B	35.59B	26.55B	21.17B	16.76B
Total Liabilities	56.69B	45.07B	37.20B	27.94B	21.91B	17.34B
Stockholders Equity	19.36B	17.93B	15.35B	13.29B	11.63B	10.23B
Cash Flow
Free Cash Flow	0	2.18B	-8.55B	-5.73B	-4.58B	-3.98B
Operating Cash Flow	0	2.34B	-8.42B	-5.70B	-4.52B	-3.96B
Investing Cash Flow	0	-10.30B	-126.79M	26.02M	-50.74M	-30.82M
Financing Cash Flow	0	8.43B	9.45B	5.53B	4.76B	3.62B

Paisalo Digital Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price78.81

Price Trends

50DMA78.84Negative

100DMA73.05Positive

200DMA56.40Positive

Market Momentum

MACD-0.57Positive

RSI47.00Neutral

STOCH69.93Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PAISALO, the sentiment is Positive. The current price of 78.81 is below the 20-day moving average (MA) of 80.28, below the 50-day MA of 78.84, and above the 200-day MA of 56.40, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 69.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PAISALO.

Paisalo Digital Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:PAISALO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SATIN	73Outperform	INR 26.27B	4.93	―	―	19.64%	296.19%
IN:MASFIN	66Neutral	INR 44.29B	10.64	―	0.82%	22.71%	23.45%
IN:CREDITACC	63Neutral	INR 163.93B	10.34	―	―	17.44%	1085.33%
IN:PAISALO	59Neutral	INR 74.09B	26.93	―	0.13%	23.67%	26.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:MUTHOOTMF	44Neutral	INR 23.02B	22.78	―	―	5.19%	―
IN:SPANDANA	37Underperform	INR 16.73B	-4.45	―	―	-46.58%	78.01%

* General Sector Average

Performance Comparison

IN:PAISALO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:PAISALO	Paisalo Digital Ltd.	78.81	41.23	109.69%
IN:CREDITACC	CreditAccess Grameen Ltd.	1021.05	-386.70	-27.47%
IN:MASFIN	MAS Financial Services Ltd.	244.10	-74.17	-23.31%
IN:MUTHOOTMF	Muthoot Microfin Ltd	135.00	-37.00	-21.51%
IN:SATIN	Satin Creditcare Network Ltd	238.80	84.85	55.12%
IN:SPANDANA	Spandana Sphoorty Financial Ltd.	188.70	-60.25	-24.20%

Paisalo Digital Ltd. Corporate Events

Paisalo Digital Plans Dubai Non-Deal Roadshow for Institutional Investors

Sep 14, 2026

Paisalo Digital Ltd. has announced a scheduled non-deal roadshow for analysts and institutional investors, to be held in Dubai from September 17 to 19, 2026. The engagement will include a mix of group and one-on-one physical meetings, aimed at deepen...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 29, 2026

Paisalo Digital Ltd. AI Stock Analysis

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