Poonawalla Fincorp Reports 701% Jump in Q3 Net Profit to ₹1.50 Billion

Poonawalla Fincorp has announced remarkable financial results for Q3, showcasing exceptional growth across key performance metrics. The financial services company demonstrated strong operational efficiency and business expansion during the quarter.

Financial Performance Highlights

The company's financial performance for Q3 reflects substantial growth momentum across revenue and profitability metrics:

Metric	Q3 Current Year	Q3 Previous Year	Growth (YoY)
Consolidated Net Profit	₹1.50 billion	₹187.30 million	+701%
Revenue	₹18.20 billion	₹10.57 billion	+72%

The consolidated net profit surge of 701% year-on-year represents one of the most significant growth trajectories, rising from ₹187.30 million to ₹1.50 billion. This exceptional performance indicates strong business fundamentals and effective operational strategies implemented by the company.

Revenue Growth Momentum

Poonawalla Fincorp's revenue performance demonstrated robust expansion with total revenue reaching ₹18.20 billion in Q3, compared to ₹10.57 billion in the corresponding quarter of the previous year. This 72% year-on-year growth reflects the company's successful business scaling and market penetration strategies.

Asset Quality Improvement

The company's asset quality metrics showed positive trends during the quarter, indicating effective risk management and portfolio optimization:

Asset Quality Metric	Q3 Current	Previous Quarter	Change (QoQ)
Gross Stage 3 Assets	1.51%	1.59%	-8 bps
Net Stage 3 Assets	0.80%	0.81%	-1 bps

The gross Stage 3 assets declined to 1.51% from 1.59% on a quarter-on-quarter basis, representing an improvement of 8 basis points. Similarly, net Stage 3 assets decreased marginally from 0.81% to 0.80% QoQ, demonstrating the company's focus on maintaining healthy asset quality standards.

Portfolio Management Excellence

The improvement in both gross and net Stage 3 asset ratios indicates Poonawalla Fincorp's effective credit risk management and collection efficiency. The declining trend in stressed assets reflects the company's prudent lending practices and robust recovery mechanisms, contributing to overall financial stability and sustainable growth prospects.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.73%	+1.07%	+5.71%	+3.08%	+50.15%	+970.68%

Poonawalla Fincorp Limited announced strong unaudited financial results for the quarter ended December 31, 2025, demonstrating robust growth across key performance indicators. The systemically important NBFC, focusing on consumer and MSME finance, delivered impressive year-on-year and quarter-on-quarter improvements in its financial metrics, with Net Interest Income surging 60.6% year-over-year to ₹1,080 crore.

Financial Performance Highlights

The company's financial performance for Q3FY26 showed significant momentum across multiple parameters:

Metric:	Q3FY26	Growth
Assets Under Management:	₹55,017 crore	77.6% YoY, 15.3% QoQ
Net Interest Income:	₹1,080 crore	60.6% YoY
Profit After Tax:	₹150 crore	102.5% QoQ
Pre-Provision Operating Profit:	₹528 crore	41.5% YoY

The company's Net Interest Margin improved to 8.62% in Q3FY26 compared to 8.40% in Q2FY26, indicating enhanced profitability. The secured to unsecured on-book mix maintained a balanced ratio of 56:44, reflecting the company's diversified lending portfolio.

Asset Quality and Risk Management

Poonawalla Fincorp demonstrated stable asset quality metrics during the quarter, with improvements in key risk indicators:

Asset Quality Metric:	Q3FY26	Q2FY26
Gross NPA:	1.51%	1.59%
Net NPA:	0.80%	0.81%
Credit Cost (% of avg AUM):	2.62%	2.67%
Stage 1 Assets:	97.4%	97.1%

The improvement in asset quality metrics reflects the company's disciplined risk management approach and strengthening credit processes. Stage 1 assets, representing performing loans, increased to 97.4% of on-book assets.

Capital Position and Liquidity

The company maintained a strong capital position with a Capital Adequacy Ratio of 18.17%, including Tier-1 capital at 17.15%, significantly above the regulatory requirement of 15.00%. This robust capital base provides adequate cushion for future growth initiatives.

Poonawalla Fincorp's liquidity position remained strong with a buffer of ₹6,488 crore as of December 31, 2025. The cost of borrowings decreased to 7.65% for the quarter, representing a 4 basis points reduction compared to Q2FY26, indicating improved funding efficiency.

Technology and Innovation

The company continued its focus on technological advancement by adding 12 new AI projects during the quarter, bringing the total to 57 cutting-edge AI projects. This technological investment supports the company's operational efficiency and customer service capabilities.

Management Commentary

Mr. Arvind Kapil, Managing Director and CEO, highlighted the strong performance, stating that the results mark a significant step-up in performance reflecting disciplined execution. He emphasized that the profit after tax doubled quarter-on-quarter, driven by a 36.5% sequential increase in pre-provision operating profit, with return on assets improving to 1.20%.

Business Overview

Poonawalla Fincorp operates as a Cyrus Poonawalla group promoted non-deposit taking systemically important NBFC, registered with the Reserve Bank of India. The company employs 5,264 people as of December 31, 2025, and offers diverse financial services including Loan Against Property, Gold Loans, Personal Loans, Education Loans, Business Loans, and various other lending products across consumer and MSME segments.