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Fino Payments Bank recorded a loss of 20.9 crore rupees in the second quarter due to margin compression
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Business Standard
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Fino Payments Bank recorded a loss of 20.9 crore rupees in the second quarter due to margin compression

Fino Payments Bank reported a net loss of 20.9 crore rupees for the quarter from July to September of fiscal year 27. The bank's profitability suffered due to margin compression and increased depreciation expenses following the migration of its core banking system.

Despite revenue consistently increasing by 9 percent to reach 333.6 crore rupees, earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 19 percent to 35.1 crore rupees.

Anup Agarwal, Interim CFO of Fino Payments Bank, noted: 'Although revenue has increased consistently, profitability has declined due to margin compression and the impact of depreciating our core banking system migration. While these investments may put pressure on short-term profits, we remain committed to building a sustainable and viable bank through product innovation, financial discipline, and targeted growth.'

For the first half of fiscal year 27, the bank reported a net loss of 34.6 crore rupees. Meanwhile, revenue for the year decreased by 25 percent compared to the previous year, amounting to 640.5 crore rupees, and EBITDA fell by 37 percent to 78.2 crore rupees.

In Q2FY27, the volume of payments for credit facilities attracted by the bank sharply increased by 286 percent compared to the same period last year, reaching 762 crore rupees. The total payment volume for the first half of FY27 reached 1,390 crore rupees, exceeding the figure for the entire fiscal year FY26. This occurs against the backdrop of the bank preparing to transition to the status of a Small Finance Bank (SFB).

Ketan Merchant, Interim CEO, stated that 'The bank is in a consolidation phase and is working to strengthen its core retail business and restore growth momentum in the B2B sector.' As part of the preparation to become an SFB, Fino has recruited senior management in branch banking, liabilities, micro, small, and medium enterprises (MSMEs), and credit risk. The bank is also investing in technology, infrastructure, and operational capabilities.

In Q2FY27, the bank's net interest margin improved by 96 basis points compared to last year, reaching 38.1 percent. The Current Account and Savings Account (CASA) business remained a key driver of growth, with revenue in this area growing by 9 percent compared to last year and accounting for 52 percent of total revenue. Income from renewals increased by 7 percent, reaching a record 74.6 crore rupees.

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KPIT Technologies' profit decreased by 29% in the second quarter of fiscal year 27
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business-standard.com

KPIT Technologies' profit decreased by 29% in the second quarter of fiscal year 27

KPIT Technologies reported a nearly 29% drop in consolidated net profit, amounting to 121 crore rupees, for the second quarter ending in September. The main reason for this decline was pressure on the automotive market from Chinese manufacturers, which slowed down deal closures.

In the same period last year, the company demonstrated a net profit of 169 crore rupees. KPIT management expects losses to begin decreasing starting from the third quarter.

Forecasts and Market Trends

Sachin Tikekar, Co-founder and Joint Managing Director of KPIT Technologies, noted that a significant profit decline was observed among two of the company's largest clients—one in Europe and another in Japan. He expressed confidence that these contracts will hit a bottom within the next few quarters, possibly two or three. Nevertheless, he forecasts gradual growth among existing OEM clients in the passenger car, truck, and SUV segments.

In the reporting quarter, KPIT Technologies' consolidated revenue from operations increased by 6.5% to 1,691 crore rupees, compared to 1,588 crore rupees the previous year. However, revenue from the passenger car segment fell by 7.8% year-on-year to USD 132.36 million (approximately 1,260 crore rupees). Meanwhile, commercial vehicle segment revenue grew by 27.3% to USD 39.98 million (nearly 375 crore rupees).

Tikekar stated that the company's prospects look more encouraging. He highlighted nervousness among European passenger car manufacturers, which is leading to a slowdown in the decision-making process. Although the company is winning many new orders, the pace of decision-making remains slightly slow; however, in his opinion, the situation is moving in the right direction, confirming the effectiveness of the adopted strategy.

He also pointed to the immense pressure being exerted on European passenger car manufacturers regarding sales, which continue to decline, as well as on their margins. According to him, companies are forced to implement cost-cutting initiatives, which will likely continue for several more quarters. This pressure is driven by competition they face in China, as well as competition from China in other regions, including Europe, Southeast Asia, the Middle East, and others.

The total contract value secured by the company in the reporting quarter amounted to USD 213 million (about 2,026 crore rupees). Tikekar added that American OEMs are in a relatively protected position because most of their revenue comes from America. He noted that Japanese manufacturers are also in a better position, as America and Japan are two of their largest markets. Although there is some decline in indicators for Japanese, Korean, and American companies, it is minor compared to what European OEMs are experiencing.

In contrast, the situation in India for passenger cars is drastically different, as this market is the fastest growing. Tikekar noted that both local Indian OEMs and some foreign players are gaining momentum. Growth is observed particularly in Maruti Suzuki, Mahindra, Tata Motors, Hyundai, and Kia, while the position of Chinese and Vietnamese companies is noticeably strengthening in the electric vehicle segment.

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