Poonawalla Fincorp filed its Business Responsibility and Sustainability Report for the financial year 2025-26 with the stock exchanges. The filing, submitted pursuant to Regulation 34(2)(f) of the SEBI Listing Regulations, includes an assurance statement provided by BDO India Services Private Limited. The report outlines the company's performance across environmental, social, and governance parameters for the period ending March 31, 2026.

Environmental Performance

The company reported a total energy consumption of 12,618.44 GJ for FY26, a decrease from 13,161.56 GJ in the previous year. Total Scope 1 and Scope 2 emissions stood at 2,548.85 tCO2, with an emission intensity of 0.3753 tCO2 per INR Cr of turnover. To mitigate environmental impact, the company installed inverter air conditioners across 257 new operational branches, resulting in an estimated reduction of ~354 tonnes of CO2 emissions annually. Additionally, the installation of LED lights contributed to a reduction of ~267.92 tonnes of CO2 emissions. The company also procured green energy from the Maharashtra State Electricity Board for its corporate office.

Water withdrawal for the year totaled 53,474 kilolitres, significantly lower than the 297,348.30 kilolitres reported in FY25, a change attributed to a corrected calculation methodology. The company generated 40.774 metric tonnes of waste, of which 37.682 metric tonnes were recycled. The report notes that the company, being a non-banking financial company, does not manufacture products and thus has limited direct material consumption.

Social and Governance Metrics

As of March 31, 2026, the company employed 5,860 permanent employees, comprising 5,110 male and 750 female staff. The Board of Directors included 10 members, with female representation at 20%. The company reported that 100% of permanent employees were covered by performance and career development reviews. The turnover rate for permanent employees was 22.40% for FY26, compared to 16.49% in the previous year.

The report highlighted that no fines or penalties were imposed by regulatory authorities during the financial year. The company maintained a zero-tolerance policy towards corruption and human rights violations, with no reported cases of bribery or sexual harassment. The Board of Directors reviews the business responsibility and sustainability performance, with the CSR Committee overseeing decision-making on related issues.

Stakeholder Engagement and Assurance

Poonawalla Fincorp engaged with stakeholders through various channels, including regulatory filings, investor meetings, and customer service platforms. The company received 19,871 customer complaints during the year, with 2,150 complaints pending resolution at the end of the year. BDO India Services Private Limited provided reasonable assurance for the BRSR Core Indicators and limited assurance for other non-financial indicators, confirming that the disclosures were fairly reliable.

Poonawalla Fincorp Limited has decided to exercise the call option for 100 unsecured, rated, non-convertible, subordinated, perpetual debentures aggregating ₹10 crore. The redemption is scheduled for July 31, 2026, with the record date fixed as July 16, 2026, to determine the eligibility of debenture holders. The company has received approval from the Reserve Bank of India for the redemption of these securities.

The debentures carry a coupon rate of 12.10% per annum and were issued on a private placement basis on August 1, 2016. The instruments were listed on the wholesale debt market segment of BSE Limited. The company has informed the debenture trustee, Catalyst Trusteeship Limited, and the NCD holders regarding its intent to exercise the call option.

Details of the NCDs

The following table outlines the specifics of the debentures being redeemed:

Redemption Process

The redemption amount, comprising the face value and accrued interest, will be paid to debenture holders holding the NCDs as on the record date. The payment will be made by crediting the amount to the bank account linked to the demat accounts of the respective holders. Upon redemption, the NCDs will be fully extinguished, and no claims will lie against the company thereafter.