Poonawalla Fincorp Limited has announced the complete utilization of the ₹1,499.98 crore raised through a preferential issue to its promoter, Rising Sun Holdings Private Limited. The monitoring agency report by CARE Ratings Limited for the quarter ended September 30, 2025, confirms that the funds have been fully deployed across three key objectives.

Allocation of Funds

The company has strategically allocated the raised capital as follows:

Timely Execution and Compliance

The preferential issue was conducted from September 17-18, 2025. Notably, the company reports no deviations from the original objectives outlined for the fund utilization. As of the quarter's end, there were no unutilized funds remaining from this issue.

Financial Performance Context

While the article focuses on the preferential issue, it's worth noting some key financial highlights from Poonawalla Fincorp's recent performance:

• Assets Under Management (AUM) grew by 68% year-over-year to ₹47,701 crore.
• Net Interest Income, including fees and other income, increased by 40.3% year-over-year to ₹905 crore for the quarter.
• The company maintained a stable asset quality with Gross NPA at 1.59% and Net NPA at 0.81%.

Strategic Implications

The full utilization of the preferential issue proceeds, particularly the significant allocation towards repaying borrowings, suggests a strategic move by Poonawalla Fincorp to strengthen its balance sheet and potentially reduce its cost of funds. The allocation for AUM growth and lending activities aligns with the company's reported strong growth in its loan book.

This capital infusion and its deployment demonstrate Poonawalla Fincorp's focus on expanding its lending operations while maintaining a robust financial position in the competitive non-banking financial company (NBFC) sector.

The timely and complete utilization of funds, as verified by an independent monitoring agency, underscores the company's commitment to transparent and efficient capital management, which may bolster investor confidence in its growth strategy and operational execution.

Poonawalla Fincorp Limited , a leading non-banking financial company (NBFC), has reported a robust financial performance for the second quarter. The company's unaudited financial results for the quarter ended September 30 showcase significant growth and improved profitability.

Key Financial Highlights

• Net Profit: Poonawalla Fincorp recorded a net profit of ₹74.20 crores for Q2, marking a substantial turnaround from a loss of ₹471.04 crores in the same quarter last year.
• Total Income: The company's total income for the quarter stood at ₹1,542.77 crores, up from ₹996.50 crores in Q2 of the previous year, representing a year-on-year growth of approximately 54.8%.
• Interest Income: Interest income saw a significant rise to ₹1,402.23 crores, compared to ₹910.74 crores in the corresponding quarter of the previous year.
• Loan Book Expansion: The company's loan book expanded to ₹43,909.93 crores as of September 30, from ₹32,694.96 crores as of March 31, indicating strong growth in lending activities.

Financial Performance Table

*As of March 31

Operational Highlights

• Improved Asset Quality: The company's gross stage 3 assets stood at 1.59%, indicating a relatively healthy asset quality.
• Capital Raise: During the half-year ended September 30, Poonawalla Fincorp raised ₹1,499.98 crores through a preferential issue to Rising Sun Holdings Private Limited, strengthening its capital base.
• Debt Securities: The company issued commercial papers and non-convertible debentures during the period, which were listed on the Bombay Stock Exchange.

Management Commentary

Arvind Kapil, Director & CEO of Poonawalla Fincorp Limited, stated, "Our Q2 results reflect the company's strong fundamentals and effective growth strategies. The significant improvement in profitability and robust loan book growth demonstrate our ability to capitalize on market opportunities while maintaining asset quality."

Future Outlook

With a strengthened capital base and expanded loan book, Poonawalla Fincorp is well-positioned for sustained growth. The company's focus on maintaining asset quality while pursuing growth opportunities is expected to drive long-term value for stakeholders.

Investors and analysts will be keenly watching the company's performance in the coming quarters to assess the sustainability of this growth trajectory and the impact of its recent capital raise on future expansions.