Poonawalla Fincorp (POONAWALLA) Q2 25/26 earnings summary

Executive summary

• Domestic economic activity remains resilient, supporting robust growth momentum.

• Achieved 68% year-over-year AUM growth to ₹47,701 crore, with 15.6% sequential growth and strong momentum across all products; new products contributed 8% to AUM.

• Net Interest Income (NII) rose 40.3% YoY to ₹905 crore, and PAT reached ₹74 crore, up 18.5% QoQ; PPOP increased 38.5% YoY and 19.1% QoQ.

• The company is in an intensive investment phase to drive long-term, sustainable profitability with a risk-first approach.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 were approved and published, with limited review by joint statutory auditors expressing an unmodified conclusion.

Financial highlights

• Assets under management (AUM) grew 68% year-over-year and 15.6% quarter-on-quarter to INR 47,701 crore as of September 30, 2025.

• Net interest income, including fee and other income, rose 17.8% quarter-on-quarter to INR 905 crore.

• Standalone and consolidated revenue from operations for the quarter was ₹1,542.30 crore, with net profit after tax at ₹74.20 crore.

• Cost of borrowing dropped to 7.69% from 8.04% in the previous quarter.

• Gross NPA improved to 1.59% from 1.84% quarter-on-quarter; net NPA at 0.86%.

• Capital adequacy ratio at 20.85%, with tier one capital at 19.63%.

• Liquidity coverage ratio at 141% and surplus liquidity of INR 6,261 crore.

Outlook and guidance

• Aspires for 5-6x AUM growth over the next five years, driven by digital and phygital expansion, new product launches, and operational efficiencies.

• Continued focus on expanding self-reliant sourcing and digital channels.

• Targeting further reduction in credit costs and improvement in ROA through product mix and risk calibration.

• Plans to reach 400 gold loan branches by March 2026, with 95% in tier two and three markets.

• The company reaffirmed its plan to sell its stake in Jaguar Advisory Services Private Limited, classified as assets held for sale, pending regulatory approvals.