Poonawalla Fincorp (POONAWALLA) Q2 26/27 earnings summary

Executive summary

• AUM reached ₹74,008 crore, up 55.1% YoY and 10.4% QoQ; new products contributed 28% of quarterly disbursements.

• PAT was ₹374.85 crore, up 21.8% QoQ, and PPOP was ₹877 crore; ROA improved to 2.18%.

• Secured on-book mix was 52%; no accelerated write-offs occurred during the quarter.

• Joint statutory auditors issued unmodified limited-review conclusions on Q2 and H1 standalone and consolidated results.

Financial highlights

• Q2 total income was ₹2,624.84 crore versus ₹1,542.77 crore YoY; PBT was ₹501.30 crore and PAT ₹374.85 crore versus ₹98.89 crore and ₹74.20 crore.

• H1 total income was ₹4,961.76 crore, PBT ₹912.56 crore and PAT ₹682.56 crore.

• NII including fees and other income was ₹1,589 crore, up 75.6% YoY; total interest income was ₹2,416 crore and interest expenses ₹1,035 crore.

• PPOP was ₹877 crore, up 126.9% YoY; Q2 operating expenses were ₹712 crore and impairment on financial instruments ₹346.37 crore.

• Q2 basic/diluted EPS was ₹4.27/₹4.26; H1 basic/diluted EPS was ₹7.82/₹7.80, not annualised.

Outlook and guidance

• Management targets AUM growth of ~35–40% CAGR over the next couple of years and aspires to grow AUM 5–6x over five years.

• Priorities include scaling consumer finance, expanding Gold Loan and digital Business Loans, and building an AI-powered consumer ecosystem.

• Management expects credit costs to stabilize gradually, supported by calibrated underwriting, portfolio diversification and stronger collections.

• ROA improvement over the next two years is expected to draw on lending spreads, credit costs and operating leverage; newer businesses may reach peak maturity in 2.5–3 years.