Poonawalla Fincorp (POONAWALLA) Q3 25/26 earnings summary

Executive summary

• AUM grew 77.6%-78% year-over-year to ₹55,017 crore as of December 31, 2025, with new products contributing 11% to AUM and strong momentum across all products.

• Profit after tax for Q3 FY26 was ₹150 crore, up 102%-102.5% quarter-on-quarter, driven by robust operational performance and scaling of new business lines.

• Significant investments in branches, technology, and management enabled successful incubation and scaling of multiple new products.

• Board approved significant capital raising plans, including up to ₹5,500 crore equity and up to ₹20,000 crore debt, and appointed a new Whole-time Director.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, with no material misstatements reported.

Financial highlights

• Net interest income (including fees) was ₹1,080 crore, up 19.3% quarter-on-quarter and 60.6% year-over-year; pre-provision operating profit was ₹528 crore, up 36.5% quarter-on-quarter and 41.5% year-over-year.

• Consolidated revenue from operations for Q3 FY26 was ₹1,818.42 crore, up from ₹1,057.03 crore in Q3 FY25.

• Cost of borrowing reduced to 7.65% in Q3 FY26.

• Opex to AUM improved to 4.4%-4.41%, a 40 bps reduction quarter-on-quarter.

• Debt-to-equity ratio stood at 4.23-4.25x, with capital adequacy at 18.17%.

Outlook and guidance

• Management maintains AUM growth guidance of 35%-40% annually and targets 400 branches and 12,000+ dealer points by March 2026.

• Board approved raising up to ₹5,500 crore via equity and up to ₹20,000 crore via non-convertible debt securities for FY 2026-27.

• Operating leverage expected to improve further as investments in new businesses mature.

• Credit costs anticipated to decline as portfolio mix shifts toward lower-risk products.