Poonawalla Fincorp Limited has initiated a postal ballot process to seek shareholder approval for the re-appointment of Kemisha Soni as an Independent Director. The company has fixed the remote e-voting period from October 17, 2026, to November 15, 2026, in compliance with regulatory norms.

The proposal involves re-appointing Soni for a second term of three years, commencing January 30, 2027, and ending January 29, 2030. The Nomination and Remuneration Committee recommended this move based on her performance evaluation, specialized skills in accounting and audit, and consistent attendance at board meetings. The resolution requires a special majority as per the Companies Act, 2013.

Voting timeline and eligibility

Shareholders whose names appear in the register of members or list of beneficial owners as on October 9, 2026, are eligible to vote. The notice was dispatched electronically to members with registered email IDs. Voting rights are proportional to the paid-up equity share capital held as on the cut-off date.

Director profile and remuneration

Kemisha Soni is a Chartered Accountant with over 28 years of experience in accounting, audit, taxation, and risk management. She currently serves as the managing partner of GDK & Associates. During FY26, she drew a commission of ₹50 lakh and sitting fees of ₹27 lakh. In the half-year ended September 30, 2026, she received sitting fees of ₹10.50 lakh.

The explanatory statement highlights her role as a past Central Council Member of the Institute of Chartered Accountants of India (ICAI) and her involvement with various financial regulatory bodies. She holds no shareholding in the company.

Governance context

This re-appointment aligns with the Reserve Bank of India (Non-Banking Financial Companies - Governance) Directions, 2025. The board stated that her continued presence would benefit the company due to her expertise in NBFC-specific accounting standards and corporate laws. Other than Soni, no other directors or key managerial personnel are concerned or interested in the resolution.

Poonawalla Fincorp Limited reported a 405% year-on-year increase in consolidated profit after tax for the quarter ended September 30, 2026, reaching ₹374.85 crore. The NBFC’s strong performance was driven by a significant expansion in interest income and improved operational efficiency, beating market expectations of ₹350 crore.

The Board of Directors approved the unaudited standalone and consolidated financial results on October 9, 2026. Total revenue from operations rose 70.17% YoY to ₹2,624.50 crore, with interest income contributing ₹2,415.54 crore, up from ₹1,402.23 crore in the corresponding quarter last year. Profit before tax stood at ₹501.30 crore, compared to ₹98.89 crore in Q2FY26.

Financial Performance Highlights

The company’s earnings per share (basic) for the quarter was ₹4.27, up from ₹0.95 in the previous year. The half-year figures also reflect robust growth, with H1FY27 PAT at ₹682.56 crore against ₹136.80 crore in H1FY26.

Balance Sheet and Asset Quality

The company’s loan book expanded significantly, with loans increasing from ₹55,951.49 crore as of March 31, 2026, to ₹69,562.71 crore as of September 30, 2026. This growth reflects aggressive lending activity supported by capital infusion through a Qualified Institutions Placement (QIP) of ₹2,500 crore completed in April 2026.

Asset quality metrics showed sequential improvement. Gross Stage 3 assets (GNPA) stood at 1.20% as of September 30, 2026, down from 1.37% in the previous quarter. Net Stage 3 assets (NNPA) improved to 0.61% from 0.70% QoQ. The debt-equity ratio stood at 4.30 on a standalone basis.

Operational Metrics and Growth Drivers

Assets Under Management (AUM) stood at ₹74,008 crore as of September 30, 2026, marking a 55.1% YoY increase. Net Interest Income (NII), including fees and other income, grew by 12.3% QoQ to ₹1,589 crore. The Net Interest Margin (NIM) improved by 16 bps QoQ to 9.26%, while Return on Assets (RoA) strengthened to 2.18% from 1.98% in Q1FY27.

Pre-Provision Operating Profit (PPoP) rose 11.8% QoQ to ₹877 crore. Credit costs declined to 2.19% of average AUM from 2.40% in the previous quarter. The secured to unsecured on-book mix stood at 52:48, and Stage 1 assets comprised 97.9% of on-book assets.

New Product Contribution

New products, including PL Prime, Gold Loan, Consumer Durable Loan, Commercial Vehicle Loan, Education Loan, and Shopkeeper Loan, contributed 28% to total disbursements in Q2FY27. Disbursements from these new verticals totaled over ₹4,400 crore. Gold loan operations are now live in 550 branches, while the consumer durable network spans 20,000+ dealer points across 360 locations.

What the Numbers Show

A key observation is the divergence between revenue growth and expense management. While interest income grew 72.27% YoY, finance costs increased by 62.34% YoY (from ₹637.81 crore to ₹1,035.45 crore). This indicates that the spread on incremental lending remained favorable, contributing to the substantial jump in profitability. Additionally, impairment charges on financial instruments rose to ₹346.37 crore in Q2FY27 from ₹257.67 crore in Q2FY26, suggesting a conservative provisioning stance despite the loan book’s rapid expansion. The beat against the consensus estimate of ₹350 crore further underscores the strength of the operating metrics relative to market expectations.

The simultaneous improvement in NIM (up 16 bps QoQ) and reduction in credit costs (down 21 bps QoQ) highlights structural margin expansion rather than just volume-driven growth. With a Capital Adequacy Ratio of 18.68% and a liquidity buffer of ₹6,526 crore, the company maintains significant headroom for future AUM expansion without immediate capital constraints.

Corporate Governance Updates

The Board also approved the re-appointment of Kemisha Soni as an Independent Director for a second term of three years, effective January 30, 2027, subject to shareholder approval. Soni brings over 28 years of experience in accounting, audit, and taxation, having served as a Central Council Member of ICAI.

The meeting concluded with the approval of the postal ballot notice for her re-appointment and the review of financial statements by joint statutory auditors M S K A & Associates LLP and B. K. Khare & Co., who issued unmodified conclusions.