Are Fino Payments Bank Ltd latest results good or bad?

Fino Payments Bank Ltd's latest financial results for Q2 FY26 present a complex picture of performance. The company reported net sales of ₹60.11 crores, reflecting a year-on-year growth of 25.88%, although this represents a slight sequential decline of 1.44% from the previous quarter. In terms of profitability, net profit stood at ₹15.35 crores, which indicates a year-on-year decrease of 27.42% and a quarter-on-quarter decline of 13.57%. A significant concern highlighted in the results is the bank's operational structure, which continues to show substantial losses. The operating profit before other income was reported at a loss of ₹291.10 crores, resulting in an operating margin of negative 484.28%. This indicates that the core business operations are not generating positive returns, and the bank is heavily reliant on other income, which amounted to ₹339.94 crores, constituting an extraordinary 1,602% of operating profit. The profit after tax margin has also compressed sharply to 25.54%, down from 44.29% in the same quarter last year, reflecting rising operational costs and structural challenges within the business model. Additionally, the return on equity for the latest period is reported at 10.65%, which is below the company's historical average and industry expectations. The company has experienced an adjustment in its evaluation, reflecting the ongoing challenges in its operational performance and profitability metrics. The latest results indicate that while revenue growth is present, the underlying operational weaknesses and dependency on non-operating income raise concerns about the sustainability of Fino Payments Bank's business model in a competitive fintech landscape.