Shares of Paisalo Digital Ltd, a small-cap non-banking financial company (NBFC) owned by SBI Life, are expected to remain in focus when stock markets open on Monday. The attention comes after the company announced a major expansion of its customer touchpoint network across India. This move is part of Paisalo Digital’s strategy to strengthen its reach, grow its customer base, and improve business volumes in the coming years.
In a filing to the stock exchanges, the company said it has significantly expanded its physical presence across the country. Paisalo Digital increased its touchpoint network nearly four times, from 1,052 locations across 18 states in FY23 to 4,380 touchpoints across 22 states and Union Territories as of the second quarter of FY26. This rapid expansion highlights the company’s focus on reaching customers in smaller towns and semi-urban areas.
Along with network expansion, Paisalo Digital said it has built a strong customer franchise. During the first half of FY26, the company reported serving around 13 million customers. This growth reflects rising demand for small-ticket loans and financial services among underserved sections of society.
The company also reported healthy growth in its loan book. Paisalo Digital’s Assets Under Management (AUM) stood at Rs 54,494 million, showing a compound annual growth rate (CAGR) of around 25 per cent over the last three years. The growth has been supported by strong loan disbursements and wider customer reach.
Paisalo Digital said that the recent expansion has helped it record its highest-ever quarterly disbursements. In the second quarter of FY26, the company disbursed loans worth Rs 11,025 million, marking a 41 per cent year-on-year increase. According to the company, this strong performance reflects improved operational efficiency and better customer access.
The NBFC focuses on providing small loans, mainly to individuals and micro-entrepreneurs who have limited access to traditional banking services. Its expanded network is expected to help deepen financial inclusion by bringing credit facilities closer to people in rural and semi-urban regions.
Company officials believe that a larger touchpoint network allows better customer servicing, faster loan processing, and improved collections. With a wider footprint, Paisalo Digital aims to strengthen long-term customer relationships and build a stable loan portfolio.
The firm’s association with SBI Life Insurance is also seen as a positive factor, as it adds credibility and trust among customers. Market participants believe that Paisalo’s steady AUM growth and strong disbursement numbers indicate improving business fundamentals despite challenges in the broader NBFC sector.
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Despite positive business updates, Paisalo Digital’s stock closed lower in the previous trading session. Shares ended at Rs 35.71 on the BSE, compared to the earlier close of Rs 36.49, marking a decline of 2.14 per cent. During the session, the stock touched an intraday high of Rs 36.91 and a low of Rs 35.42.
The company’s market capitalisation currently stands at Rs 3,247.90 crore, placing it firmly in the small-cap category. Over the past year, the stock has seen significant volatility, reflecting broader market trends and investor caution towards small-cap financial stocks.
From a technical perspective, the stock is trading above its 100-day and 200-day moving averages, which is generally seen as a positive sign for long-term trends. However, it remains below its 5-day, 20-day, and 50-day moving averages, suggesting near-term weakness and cautious sentiment among traders.
Looking at its price history, Paisalo Digital has delivered strong returns over the long term. The stock has gained 162.38 per cent over the past 10 years and 44.40 per cent over five years. However, performance in recent years has been weaker. The stock has fallen 11.89 per cent over three years and 25.77 per cent over two years.
In the past one year alone, the stock has declined by 37.37 per cent, reflecting pressure on small-cap stocks and concerns around rising interest rates and asset quality in the NBFC sector. On a year-to-date basis, Paisalo Digital shares are down 27.93 per cent, while the benchmark index has delivered a positive return of 8.18 per cent during the same period.
The stock’s 52-week high stands at Rs 59.40, while the 52-week low is Rs 29.40, showing a wide trading range. Analysts believe that while short-term volatility may continue, the company’s expanding network and improving AUM could support long-term growth if economic conditions remain stable.
Overall, Paisalo Digital’s aggressive expansion strategy and steady business growth make it a stock to watch. However, investors are likely to remain cautious in the near term, keeping a close eye on market conditions, asset quality, and future earnings performance.
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