Poonawalla Fincorp (POONAWALLA) investor relations material

Executive summary

• Achieved 53% year-over-year AUM growth to INR 41,273 crores as of June 2025, with a secured on-book mix at 57% and strong momentum across all products.

• Net Interest Income for Q1 FY26 was INR 768 crores, up 13.6% year-over-year, and PAT stood at INR 63 crores.

• Launched multiple new businesses, including prime personal loans, gold loans, consumer durables, commercial vehicle loans, and education loans, all showing strong initial traction.

• Significant investments in AI and digital transformation to drive efficiency, risk management, and customer experience.

• Board approved raising INR 1,500 crores via preferential equity issue to the promoter to strengthen the capital base.

Financial highlights

• AUM grew 53% year-over-year and 16% quarter-over-quarter; NII up 13.6% YoY to INR 768 crores; PAT for Q1 FY26 was INR 63 crores.

• Gross NPA stable at 1.84%, net NPA at 0.85%, and provisioning coverage ratio at 53.93%.

• Credit cost improved to 2.61% overall, 1.43% for core products; cost of borrowing reduced to 8.04%.

• OpEx to average AUM at 4.8% as investments in expansion continue.

• Liquidity stood at INR 4,465 crores as of June 30, 2025; credit rating maintained at AAA/Stable (long-term) and A1+ (short-term).

Outlook and guidance

• AUM growth for FY26 expected to exceed guidance of 35–40%, with aspirations for 5–6x AUM growth over five years.

• NIMs expected to return to ~9% within the next 3–4 quarters as portfolio recalibration completes.

• Credit cost guidance maintained at 1.5–2% steady state, with further improvement expected over 2–3 years.

• Opex as % of AUM expected to stabilize by Q4FY26 as scale and efficiencies improve.

• The Board reaffirmed the plan to sell its shareholding in Jaguar Advisory Services Private Limited, subject to regulatory approvals.