Poonawalla Fincorp Secures ₹1,010 Crore Through Non-Convertible Debentures

Poonawalla Fincorp , a prominent player in India's financial services sector, has successfully raised ₹1,010 crore through the issuance of non-convertible debentures (NCDs) via private placement. This strategic move demonstrates the company's ability to attract significant capital in the current market environment.

Key Details of the NCD Issuance

The fundraising effort comprises two distinct series of NCDs:

NCD Series	Type	Amount (₹ Crore)	Tenure	Coupon Rate
G2 STRPP I	Fully Paid	1,000.00	5 Years	7.90% p.a.
G3 STRPP II	Partly Paid	10.00	5 Years and 181 Days	7.90% p.a.

Issuance Structure and Terms

Allotment Date: October 31, 2025
Maturity:
- Series G2 STRPP I: October 31, 2030
- Series G3 STRPP II: April 30, 2031
Listing: The debentures are set to be listed on the debt market segment of the BSE Limited.
Security: The obligations under the debentures will be secured by a first-ranking pari-passu charge on the hypothecated properties, providing the required security cover.

Significance of the Fundraise

This substantial fundraising effort underscores Poonawalla Fincorp's strong market position and investor confidence. The successful placement of NCDs indicates the company's solid financial standing and growth prospects.

Investor Protections

To safeguard investor interests, Poonawalla Fincorp has incorporated specific provisions:

In case of delayed payments, the company will pay an additional 2% over the applicable coupon rate until the default is rectified.
The debentures are secured, providing an additional layer of protection for investors.

Looking Ahead

The funds raised through this NCD issuance are likely to bolster Poonawalla Fincorp's capital base, potentially supporting its growth initiatives and strengthening its market position in the financial services sector. As the company moves forward, market observers will be keen to see how these funds are utilized to drive business expansion and enhance shareholder value.

Investors and market participants are advised to monitor the company's future announcements and financial reports for insights into the deployment and impact of this capital raise.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.25%	-0.56%	-3.17%	+28.41%	+28.66%	+1,200.54%

Poonawalla Fincorp Limited (PFL), a leading non-banking finance company (NBFC) promoted by the Cyrus Poonawalla Group, has reported strong financial performance for the second quarter of fiscal year 2026, marked by significant asset growth and technological advancements.

Key Financial Highlights

PFL's Assets Under Management (AUM) grew by 68% year-on-year to Rs. 47,701.00 crores in Q2 FY26, with a 15.6% quarter-on-quarter growth. This growth was accompanied by improvements in several key financial metrics:

Metric	Q2 FY26	Q1 FY26	Change
Gross NPA	1.59%	1.84%	-25 bps
Net Interest Margin	8.40%	8.32%	+8 bps
Cost of Borrowing	7.69%	8.04%	-35 bps
Stage 1 Assets	97.10%	96.50%	+60 bps

The company's asset quality improved, with gross Non-Performing Assets (NPAs) decreasing to 1.59% from 1.84% in the previous quarter. Stage 1 assets, an indicator of healthy loan performance, rose to 97.10%, reflecting stronger asset quality.

Strategic Developments

During the quarter, PFL received a capital infusion of Rs. 1,500.00 crores through a preferential issue from the promoter, underscoring the promoter's confidence in the company's growth trajectory.

The company has made progress in diversifying its borrowing mix, with the share of Non-Convertible Debentures (NCDs) in total borrowings increasing to 27% from 7% a year ago. This shift has contributed to a 35 basis point reduction in the cost of borrowing, now at 7.69%.

Business Expansion and Innovation

PFL has been expanding its product offerings and distribution network:

New product disbursements reached Rs. 750.00 crores in September 2025, contributing 17% to total disbursements, up from 11% in the previous quarter.
The gold loan branch network doubled to 160 from 80 in the last quarter, with plans to reach 400 branches by March 2026.
Consumer durable dealer distribution points increased from 3,000 in June 2025 to 10,000 in September 2025.

Technological Advancements

The company has made strides in its AI-first transformation strategy:

Launched 45 AI projects across operations, with 16 currently live.
Deployed five new AI-powered solutions in HR, governance, and compliance, including an Early Warning System for workforce risk and AI-driven Suspicious Transaction Reporting for financial crime compliance.
Implemented 'RegIntel', an AI-powered compliance assistant for addressing employee queries on internal policies and regulatory frameworks.

Financial Performance

Despite investments in new businesses and technology, PFL reported a profit after tax of Rs. 74.00 crores for Q2 FY26. The company's focus on expanding its secured asset base and recalibrating its portfolio mix is expected to contribute to improved profitability in the coming quarters.

Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp, commented on the results: "We are reimagining how our organisation works by infusing intelligence into every part of our ecosystem. Our AI-led solutions are designed to make us more agile, transparent, and future-ready. The depth of AI projects across different departments, we believe, makes it an industry-first approach, with some being potential game-changers."

As Poonawalla Fincorp continues to invest in technology and expand its product offerings, the company appears well-positioned for sustained growth in the evolving financial services landscape. The focus on AI-driven solutions and strategic expansion of its secured lending portfolio could potentially lead to improved operational efficiencies and better risk management in the coming quarters.