Poonawalla Fincorp , a leading non-banking financial company (NBFC), has set ambitious growth targets for the fiscal year 2026, building on its strong performance in the first quarter of FY26. The company has outlined plans for significant expansion and capital infusion to support its growth trajectory.

Robust AUM Growth and Expansion Plans

Poonawalla Fincorp is targeting an impressive growth of over 40% in its asset under management (AUM) for FY26. This ambitious goal follows the company's stellar performance in Q1 FY26, where it achieved a 53% annual AUM growth, reaching Rs 41,273.00 crore.

The company's growth strategy encompasses a diverse portfolio of 13 business lines, including personal loans, car finance, gold loans, and education loans. This diversification allows Poonawalla Fincorp to cater to a wide range of customer needs and market segments.

Capital Infusion to Fuel Growth

To support its aggressive growth plans, Poonawalla Fincorp has announced a significant capital infusion. The promoter will inject Rs 1,500.00 crore through preferential equity shares, a move that is expected to bolster the company's net worth to approximately Rs 10,000.00 crore. This substantial increase in capital will provide the necessary financial backing for the company's expansion strategies and strengthen its market position.

Product Diversification and Market Expansion

In line with its growth strategy, Poonawalla Fincorp launched five new products in 2025. A notable addition to its product portfolio is the introduction of gold loans in April. The company has already opened 80 dedicated branches for gold loans across four states and has ambitious plans to expand this network to 400 branches by the end of the year.

Improved Financial Metrics

Poonawalla Fincorp's financial performance shows positive trends. The company's borrowing cost decreased to 8.04% in Q1 from 8.07% in March, indicating improved efficiency in fund management. The credit cost stands at 1.43%, reflecting the company's prudent risk management practices.

Diversified Funding Sources

During Q1 FY26, Poonawalla Fincorp raised Rs 5,458.00 crore through Non-Convertible Debentures (NCDs). This fundraising has significantly altered the company's borrowing mix, with NCDs now contributing 24% of total borrowings, up from 7% in March 2025. This diversification in funding sources is likely to provide more financial flexibility and potentially reduce overall borrowing costs.

Looking Ahead

With its robust growth plans, strategic capital infusion, and diversified product offerings, Poonawalla Fincorp appears well-positioned to capitalize on the growing demand for financial services in India. The company's focus on expanding its gold loan business and its ability to raise funds through various instruments demonstrate its adaptability to market needs and changing economic conditions.

As Poonawalla Fincorp moves forward with its ambitious growth strategy, investors and market watchers will be keenly observing how these plans translate into sustained financial performance and market share gains in the competitive NBFC sector.

Poonawalla Fincorp Limited , a non-deposit taking systemically important NBFC focusing on consumer and MSME finance, has announced its unaudited financial results for the quarter ending June 30, 2025 (Q1 FY26). The company has reported significant growth and strategic developments.

Strong AUM Growth and Financial Performance

Poonawalla Fincorp registered a robust 53% year-on-year growth in Assets Under Management (AUM), reaching ₹41,273 crore in Q1 FY26. The company's Net Interest Income (NII), including fees and other income, grew by 13.6% YoY to ₹768 crore during the quarter.

Key financial highlights for Q1 FY26 include:

Promoter to Infuse ₹1,500 Crore

In a significant development, the Board of Directors has approved raising funds amounting to approximately ₹1,500 crore via the issuance of equity shares on a preferential basis to the promoter, subject to shareholders' approval. This strategic move underscores the promoter's continued confidence in the company's long-term growth trajectory and will further strengthen the capital base to support business growth.

Business Update and New Product Launches

Poonawalla Fincorp reported healthy traction in newly launched businesses:

• Personal Loan Prime: Launched industry-first PL Prime Digital 24x7 in March 2025
• Gold Loan: On track to launch 400 branches by March 2026
• Consumer Durable Loan: Live with 3,000+ dealers across ~160 locations
• Commercial Vehicle Loan: Commenced business across 27 locations in 10 states
• Education Loan: Onboarded 150+ dedicated sales team and ~100 partners

New products' disbursement contributed 11% to total disbursement in Q1 FY26.

Management Commentary

Mr. Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, commented on the results: "With credit cost significantly reducing on an overall basis by 53 bps QoQ, a risk-calibrated AUM increase of 15.8% QoQ, and ~₹1,500 cr capital infusion on preferential basis by the promoter, strengthens the company and supports its growth plans. Poonawalla Fincorp is well-poised for building a risk-first, sustainable, and profitable model."

Future Outlook

The company has outlined a clear roadmap for growth, aiming for a 5-6x AUM expansion over the FY 2023-24 base in 5 years. Poonawalla Fincorp is focused on diversifying risk through multiple products and creating a sustainable profit model.

With its strong financial performance, strategic capital infusion, and expansion into new product categories, Poonawalla Fincorp appears well-positioned to capitalize on growth opportunities in the consumer and MSME finance segments.