Poonawalla Fincorp (POONAWALLA) investor relations material

Executive summary

• AUM reached ₹67,054 crore in Q1 FY27, up 11.1% quarter-on-quarter and 62.5% year-on-year, with new products contributing 26% of disbursements and strong scalability across business lines.

• Profit after tax was ₹308 crore, up 20.8% quarter-on-quarter and 391.5% year-on-year, with ROA improving to 1.98%.

• Asset quality improved, with GNPA at 1.37% and NNPA at 0.70%.

• Digital and AI-driven processes enhanced operational efficiency, risk management, and customer engagement.

• Unaudited standalone and consolidated financial results for Q1 FY27 were approved and published following board and audit committee review.

Financial highlights

• Net interest income (including fees and other income) stood at ₹1,415 crore, up 10.9% quarter-on-quarter and 84.3% year-on-year.

• Pre-provisioning operating profit was ₹785 crore, up 12.9% quarter-on-quarter and 141.8% year-on-year.

• Standalone revenue from operations for Q1 FY27 was ₹2,330.22 crore, up from ₹1,313.97 crore in Q1 FY26.

• OpEx-to-AUM declined to 4.06%, and cost to income ratio improved to 44.6%.

• Capital adequacy ratio at 19.46% (Tier 1: 18.37%), with liquidity coverage ratio at 199.62%.

Outlook and guidance

• Management targets ROA of 3%-3.5% by June 2028, with continued focus on improving NIMs, disbursement yields, and credit cost moderation.

• Targeting AUM growth of 35-40% CAGR over the next few years, with focus on scaling consumer franchise and leveraging AI.

• No immediate plans for further capital raise after ₹2,500 crore QIP in April 2026; current capital is sufficient for the next 4-5 quarters.

• Funds raised via QIP and other instruments have been fully utilized as per stated objectives, supporting future lending and growth.

• Expectation of stable or slightly higher cost of borrowing, but confident in offsetting through higher yields and product mix.