Fino Payments Bank Q1 FY27 results showed a 32% year-on-year decline in revenue to ₹306.9 crore, while the net revenue margin expanded to 42.8%, the bank said in a BSE filing on August 13, 2026. The unaudited results cover the quarter ended June 30, 2026.

Net revenue stood at ₹131.2 crore, down 14% from a year earlier and 4% sequentially. The bank attributed the moderation in revenue and profitability primarily to the recalibration of its Digital Payments Services-B2B UPI P2M vertical and cash-driven transaction business.

Despite the decline, the net revenue margin increased by 925 basis points year-on-year and 275 basis points quarter-on-quarter to its highest quarterly level of 42.8%. The high-margin CASA segment contributed 54% of revenue. EBITDA margin was 14%, compared with 13.6% in Q1 FY26 and 16.5% in Q4 FY26.

Deposits and customer accounts expand

Fino Payments Bank's CASA customer base rose 22% year-on-year to 1.83 crore, supported by 8.4 lakh new CASA accounts opened during the quarter. Average total deposits increased 12% to ₹2,772 crore, while renewal income grew 7% to ₹67.5 crore.

  • Total throughput declined 10% year-on-year but rose 3% sequentially to ₹1.11 lakh crore.
  • UPI throughput increased 14% year-on-year and 2% quarter-on-quarter to ₹60,100 crore.
  • CMS throughput recovered 26% sequentially to ₹18,092 crore.
  • Transaction-business revenue fell 50% year-on-year, while its throughput decreased 44% as UPI continued to affect remittance, MATM and AePS activity.

The Digital Payments Services business remained non-operational during Q1 FY27 because of the recalibration. The bank expects to relaunch it in Q4 FY27.

Referral lending supports SFB preparations

The loan-referral segment, described by Fino as a pilot for its proposed Small Finance Bank, recorded a 214% year-on-year rise in disbursals to ₹628 crore. The quarterly amount was nearly half of the total disbursals reported for FY26.

Fino said it had made progress in hiring senior credit professionals and onboarding technology providers for lending operations, loan management and credit underwriting. It added that the bank remained on track to meet the required conditions within the stipulated timeline.

The Reserve Bank of India granted Fino in-principle approval to convert into a Small Finance Bank on December 5, 2025. Interim CEO Ketan Merchant said the current focus is on retail banking, building the SFB and expanding low-cost liabilities through customer acquisition and referral lending. Interim CFO Anup Agarwal said the growing liability franchise and structural funding advantage provided the foundation for the bank's asset-light model.

Source: BSE corporate announcement.