This small-cap fintech stock, Financial Inclusion Network Operations (FINO), offering a wide range of digital-first financial services across India through its pan-India distribution network, is in focus after its management set a Rs 100 crore profit target for FY26.
With a market capitalization of Rs 2,384 Crores, the share price of Fino Payments Bank Ltd was trading almost 1% up to hit an intraday high of Rs 290.30 per share from its previous closing price of Rs 288.00 per share.
Guidance:
The bank aims to achieve a net profit of Rs 100 crore this year, supported by rising digital transactions, which now contribute around 49% of its total volume. It also expects digital revenue to cross 25% in FY26, up from 21% last year.
Fino plans to launch new digital products like Soundbox, offline QR codes, and PPI solutions, while continuing its expansion into lending through partnerships with NBFCs. The bank is also working on a transition to a Small Finance Bank, which would allow broader offerings.
With digital margins improving and a strong merchant network of over 19 lakh, the company aims to grow CASA deposits, invest in tech, and maintain a cost-income ratio of around 25%, focusing on long-term value and sustainable profitability.
Fino Payments Bank, launched in 2017 and backed by ICICI Bank, BPCL, Blackstone, and IFC, provides simple digital banking services. It operates an asset-light model with over 19 lakh merchant outlets covering 97% of India’s pin codes. The bank serves 1.43 crore customers, with 53 lakh digitally active as of March 2025. It also has 54 branches and 130 customer service points.
Fino uses a “phygital” model where merchants act as mini-bankers, helping users with transactions and account services. Deposits grew 30% YoY to Rs 2,225 crore by March 2025. It offers services through both B2B and direct merchant models. With rising digital adoption, Fino continues to expand its reach and drive financial inclusion.
The company reported a revenue of Rs 195 crore in FY25, up by 30 percent from its FY24 revenue of Rs 150 crore. Coming to its profitability, the company reported a net profit rise of 8.14 percent to Rs 93 crore in FY25 from Rs 86 crore in FY24. The stock delivered an ROE and ROCE of 13.6 percent and 6.67 percent, respectively.
Written By Rohan Pandey
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