Fino Payments Bank posted a second consecutive quarter of loss in Q2 FY27, reporting a net loss of ₹20.9 Cr against a net profit of ₹15.4 Cr in the year-ago period.
This is the second consecutive loss making quarter for the company after the operational disruptions it faced in February. Net loss widened 52.3% from ₹13.7 Cr loss incurred in the previous quarter.
The company attributed the losses to revenue decline, margin compression and the impact of depreciation.
“… Profitability dipped due to margin compression and the depreciation impact of our core banking migration. While these investments may pressure short-term earnings, we remain committed to building a resilient and sustainable bank through product innovation, financial discipline, and targeted growth,” said Fino Payments Bank’s interim CFO Anup Agarwal.
The losses came as the company’s total income for the quarter declined 16.6% to ₹333.6 Cr from ₹400.1 Cr in the year-ago quarter. It increased 8.7% from ₹306.9 Cr in the preceding June quarter.
Fino’s other income, which includes fees and commissions from its banking and payment services, declined 23.8% to ₹259.2 Cr from ₹339.9 Cr in Q2 FY26. The company also earned ₹74.5 Cr in interest from investments, balance with RBI and advances in Q2 FY27, up 24% YoY.
EBITDA tanked 43% to ₹35.1 Cr in Q2 FY27 as against ₹61.6 Cr in the year-ago quarter. The payments bank attributed this to investments in technology, infrastructure, talent and operational capabilities. On similar lines, EBITDA margin also contracted to 10.5% from 15.4% in Q2 FY26.
Meanwhile, Fino’s total expenditure, excluding provisions and contingencies, declined 6.4% YoY to ₹354.5 Cr in the quarter under review from ₹378.8 Cr in Q2 FY26.
In the quarter, the company’s digital payment services business remained non-operational and contributed nil revenue in Q2 FY27. This wiped off a key top line driver. For context, the vertical accounted for 16%, or ₹63.4 Cr, of Fino’s total revenue in the year-ago quarter. It now plans to relaunch the service by Q4 FY27.
Giving a breakdown of its revenue, Fino said that current accounts and savings accounts (CASA) accounted for 52% (₹174 Cr) of its top line in Q2 FY27, while transaction business contributed 17% (₹54.9 Cr). Cash management services contributed another 8% (₹26 Cr) to Fino’s Q2 FY27 revenue.
On the operational front, the payments bank opened 8.2 Lakh new current and savings accounts during the quarter. With this, the total number of CASAs under its belt grew 20% YoY to 19.1 Cr at the end of September 2026.
As per Fino’s investor presentation, the average total deposits on its platform zoomed 34% YoY to ₹2,490 Cr during the quarter under review. The number of digitally-active customers also rose 13% YoY to 64.9 Lakh in Q2 FY27.
Overall, Fino processed 92.8 Cr digital transactions during the quarter under review, up 6% YoY, worth ₹64,023 Cr, up 2% YoY. It had also deployed soundboxed at 5,383 merchants at the end of September 2026, which processed payments worth ₹17.3 Cr in Q2 FY27.
Fino’s loan referral segment, which it sees as a pilot for its proposed small finance bank (SFB), saw disbursals surge 286% YoY to ₹762 Cr, while the number of borrowers rose a marginal 5.5% to 10,467.
On the SFB front, the company said that it has onboarded senior leadership across areas such as branch banking, liabilities, MSME and credit risk. It also claims to be deploying the necessary technology and infrastructure to meet the SFB requirements.
“The Bank is in (the) consolidation phase and is working towards strengthening its core retail business and restoring growth momentum in B2B businesses. Further, growth in referral loan business is a testimony towards our preparation for future transition and validation of our differentiated SFB model,” said Fino’s interim CEO Ketan Merchant.
Shares of Fino ended Thursday’s trading session 1.03% higher at ₹123.05 apiece on the BSE.
The post Fino Payments Bank Posts ₹21 Cr Loss In Q2, Total Income Falls 17% YoY appeared first on Inc42 Media.