SBI Life Maintains Stake in Paisalo Digital as FPIs Increase Holdings in Q3 FY26
In the quarter ended December 2025 (Q3 FY26), SBI Life Insurance Company maintained its shareholding in small-cap non-banking financial company (NBFC) Paisalo Digital, which trades under ₹50 per share. The insurer held a steady 6.83% stake, equivalent to 6.98 crore shares, mirroring its position from the previous quarter (Q2 FY26).
Foreign and Retail Investors Show Confidence
Meanwhile, foreign portfolio investors (FPIs) demonstrated increased confidence in Paisalo Digital by raising their stake to 20.89%, or 18.99 crore shares, up from 20.08% or 18.25 crore shares in the September quarter. This uptick in FPI ownership is generally viewed as a positive signal in the stock market, indicating institutional belief in the company's growth prospects and financial stability.
Retail investors also joined the buying trend during the quarter under review. Their stake climbed to 12.57%, representing 11.43 crore shares, compared to 12.05% or 10.96 crore shares on a quarter-on-quarter basis. This collective investor activity underscores a broadening interest in the NBFC's performance.
Paisalo Digital Reports Robust Q3 Financial Results
For the quarter ended December 31, 2025, Paisalo Digital announced a consolidated profit after tax (PAT) of ₹66.3 crore. This marks a year-on-year increase of approximately 6.6% from ₹62.4 crore in the same quarter last year. Sequentially, profit surged nearly 30% from ₹51 crore reported in the September quarter (Q2 FY26).
The company's total income for Q3 FY26 reached ₹240.1 crore, showing growth from ₹203.8 crore in the year-ago period and ₹224.0 crore in the preceding quarter. Notably, net income soared to ₹243 crore, a sharp rise from ₹181 crore in the December 2024 quarter. Net interest income improved significantly to ₹148 crore, up from ₹99 crore a year earlier, as per the company's earnings filing.
Strategic Financial Moves and Capital Raising
In late January, Paisalo Digital announced the redemption of ₹1 crore worth of unlisted, unsecured, redeemable non-convertible debentures by exercising an early call option. This strategic move aims to reduce long-term debt ahead of the instruments' scheduled maturity, potentially strengthening the company's balance sheet.
Earlier in the year, the small-cap NBFC raised ₹188.5 crore during the third quarter through listed issuances, securing an annual return of 8.5%. The fundraise was undertaken to optimise funding costs, enhance capital efficiency, and support business expansion initiatives.
Stock Performance and Market Context
The NBFC stock was trading around 3% lower on February 9. Over the past year, it has declined by 16%, but has gained 16% in the last six months. Recently, it fell around 2% in the last month, reflecting typical market volatility for small-cap stocks.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
