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.

Poonawalla Fincorp Limited , a non-deposit taking systemically important NBFC focusing on consumer and MSME finance, has announced robust financial results for the first quarter of fiscal year 2026 (Q1 FY26).

Highlights of Q1 FY26 Performance

• Assets Under Management (AUM) grew by 53.0% year-over-year to ₹41,273 crore
• Net Interest Income (including fees and other income) increased by 13.6% YoY to ₹768 crore
• Profit After Tax (PAT) stood at ₹63 crore
• Gross Non-Performing Assets (GNPA) remained stable at 1.84%
• Net Non-Performing Assets (NNPA) at 0.85%

Strong AUM Growth and Portfolio Mix

Poonawalla Fincorp demonstrated impressive growth in its loan book, with AUM reaching ₹41,273 crore, marking a 53.0% increase year-over-year and a 15.8% growth quarter-on-quarter. The company maintained a balanced portfolio with a secured to unsecured on-book mix of 57:43.

The AUM mix comprised:

Financial Performance

Net Interest Income, including fees and other income, grew by 13.6% YoY to ₹768 crore. The company's Pre-Provision Operating Profit (PPoP) stood at ₹325 crore for the quarter, reflecting ongoing investments in new businesses and a shift towards a more secured book.

Asset Quality and Capital Adequacy

Poonawalla Fincorp maintained stable asset quality with Gross NPA at 1.84% and Net NPA at 0.85%. The Provision Coverage Ratio was reported at 53.93%. The company's Capital Adequacy Ratio remained strong at 20.55%, well above the regulatory requirement of 15%.

New Business Initiatives

The company reported healthy traction in its newly launched businesses:

• Consumer Durable Loan: Live with 3,000+ dealers across ~160 locations
• Gold Loan: 80 branches launched across Gujarat, Haryana, Rajasthan, and Maharashtra
• Commercial Vehicle Loan: Commenced operations across 27 locations in 10 states
• Education Loan: Onboarded 150+ dedicated sales team and ~100 partners

Capital Infusion and Future Outlook

In a significant development, the Board of Directors 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 is expected to strengthen the company's capital base and support its business growth.

Mr. Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, commented, "With credit cost significantly reducing on an overall basis by 53 bps QoQ, a risk-calibrated AUM increase of 15.8% QoQ, and ~Rs.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."

The company's focus on expanding its product portfolio, enhancing its distribution network, and maintaining strong asset quality positions it well for continued growth in the competitive NBFC landscape.

Note: All financial figures are in Indian Rupees (₹) and comparisons are made on a year-over-year (YoY) basis unless otherwise specified.