Poonawalla Fincorp (POONAWALLA) Q3 25/26 earnings summary

Executive summary

• AUM grew 78% year-over-year to ₹55,017 crore as of December 31, 2025, with new products contributing 20% to Q3 disbursements and strong momentum across all segments.

• PAT surged 102.5% quarter-on-quarter to ₹150 crore, driven by operational performance and scaling of new business lines.

• Significant investments in branches, technology, and management enabled successful scaling of new products and omni-channel distribution, with 294+ branches and a target of 400 by March 2026.

• Approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 2025, with no material misstatements reported.

• Board approved major capital raising plans and appointed a new Whole-time Director.

Financial highlights

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

• Profit after tax for Q3 FY26 was ₹150 crore, compared to a loss of ₹160.67 crore in Q3 FY25.

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

• Capital adequacy ratio at 18.17%, Tier 1 at 17.15%, and liquidity coverage ratio at 156%.

Outlook and guidance

• AUM growth guidance maintained at 35%-40% annually, with focus on retail and new products.

• 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.

• On track to launch 400 branches and expand dealer points to 12,000+ by March 2026.

• 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.