Poonawalla Fincorp Limited (PFL), a leading NBFC focused on consumer and MSME lending, has reported robust growth and significant technological advancements in its recent quarterly results and corporate announcements.

Strong AUM Growth and Financial Performance

PFL's Assets Under Management (AUM) grew by an impressive 53% year-on-year and 15.8% quarter-on-quarter, reaching Rs. 41,273.00 crores. The company's total disbursements for the quarter increased by 13.6% quarter-on-quarter to Rs. 10,651.00 crores, indicating strong momentum across its product lines.

Improved Credit Costs and Asset Quality

The company reported a significant improvement in credit costs, which decreased by 53 basis points to 2.61% for all businesses. Notably, the credit costs for 12 core products, excluding STPL (Short Term Personal Loans), stood at 1.43%. This improvement reflects PFL's robust credit underwriting and risk management practices.

Asset quality remained stable, with:

• Gross Non-Performing Assets (GNPA) at 1.84%
• Net NPA at 0.85%
• Provisioning coverage ratio at 53.93%

These figures indicate a conservative approach to potential credit risks.

Strategic Capital Infusion and Liability Management

In a significant move, PFL's Board of Directors approved a Rs. 1,500.00 crores equity capital infusion from promoters at Rs. 452.50 per share. This capital infusion is expected to strengthen the company's balance sheet and support its growth plans.

The company has also made strides in diversifying its liability mix, increasing the share of Non-Convertible Debentures (NCDs) in total borrowings from 7% to 24% during the quarter. This shift towards long-term funding sources is aimed at optimizing the cost of borrowings and improving overall financial stability.

Expansion of Product Portfolio and Distribution Network

PFL has shown healthy momentum in its newly launched business segments, including:

• Prime Personal Loans
• Gold Loans
• Consumer Durables
• Commercial Vehicle Loans
• Education Loans

The company has already expanded its gold loan network to 80 operational branches across Gujarat, Haryana, Rajasthan, and Maharashtra, with plans to reach 400 branches by March 2026.

Deployment of AI Solutions

PFL revealed the deployment of four AI-led solutions across its operations and finance functions:

1. An Agentic AI solution for Data Quality Index (DQI) to enhance operational data integrity.
2. An AI-powered Infrastructure Management Solution to streamline property acquisition for branch expansion.
3. A proprietary Fin-Bot for advanced financial intelligence and analysis.
4. An AI-led Invoice Management System to automate and expedite invoice processing.

These AI initiatives are part of PFL's broader strategy to embed intelligence across its operations, aiming to enhance decision-making, improve efficiency, and drive innovation.

Future Outlook

Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp, expressed confidence in the company's growth trajectory and risk management approach. He stated, "We are very conscious of the commitments that we make. With this, I would like to reiterate our confidence in our high growth trajectory, maintaining a balance and sensible risk level."

The company expects to:

• Maintain healthy AUM growth in the coming quarters, likely exceeding its guidance of 35%-40% for the financial year.
• See its Net Interest Margins (NIMs) return to around 9% within the next 3-4 quarters as it continues to recalibrate its portfolio mix.

With its strong financial performance, strategic initiatives in AI and digital transformation, and expansion plans, Poonawalla Fincorp appears well-positioned for sustained growth in the competitive NBFC sector.

Poonawalla Fincorp Limited (PFL), a Cyrus Poonawalla Group-promoted NBFC focused on Consumer and MSME lending, has announced the deployment of four advanced AI-led solutions as part of its enterprise-wide digital transformation initiative. This move underscores the company's commitment to leveraging artificial intelligence to streamline operations, enhance decision-making, and drive growth.

AI Solutions Deployed

1. Agentic AI-powered Data Quality Index (DQI): This solution is designed to autonomously drive operational data integrity at scale. It reduces manual intervention and delivers audit-ready transparency, featuring anomaly detection and self-adaptive validation logic.

2. AI-powered Infrastructure Management Solution: Aimed at facilitating PFL's 400 phase-wise branch expansion across Tier 2 and Tier 3 cities, this solution streamlines property acquisition processes. It validates regionally prepared legal documents through multilingual translation and intelligent data extraction, reducing document validation time from 2-3 days to under 5 minutes.

3. Fin-Bot for Financial Intelligence: Developed in-house, this proprietary AI-powered solution delivers precision-driven financial analysis. It aggregates data from multiple systems into a centralized repository and offers customized reports across key financial metrics, enhancing governance and decision-making.

4. AI-powered Invoice Management System: This solution automates the reading and validation of sourcing channel invoices based on predefined policies and compliance standards. It utilizes machine learning and AI-vision models to enhance accuracy, reduce manual effort, and expedite processing.

Strategic Impact

Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp, emphasized the company's long-term vision for AI integration: "We're not treating AI as a one-time upgrade. It's a long-term capability we are building deliberately across the organisation, grounded in responsible use and real business relevance."

The company views AI as a strategic differentiator across core areas, including risk calibration, fraud detection, marketing, compliance, HR, governance, audit, and underwriting quality assessment. PFL is actively scaling its AI efforts with 35 projects, of which 8 have been successfully completed.

Recent Corporate Development

In a separate announcement, Poonawalla Fincorp's Nomination and Remuneration Committee has allotted 202,068 equity shares under the Employee Stock Option Plan - 2021. This allotment increases the company's issued, subscribed, and paid-up equity share capital to ₹155.82 crore, consisting of 779,121,306 equity shares of ₹2 each.

As of June 30, Poonawalla Fincorp reported an Assets Under Management (AUM) of ₹41,273.00 crore and employed 4,685 people. The company continues to strengthen its position in the financial services sector, offering a wide range of products including Pre-Owned Car Finance, Digital Personal Loans, Loans for Professionals, and various other lending solutions.

Poonawalla Fincorp's strategic AI deployment reflects its commitment to building a future-ready organization, emphasizing digital confidence and operational agility in the competitive NBFC landscape.