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 ₹41,273.00 crore in Q1 FY26. The company's Net Interest Income (NII), including fees and other income, grew by 13.6% YoY to ₹768.00 crore during the quarter.

Key Financial Highlights

• AUM stood at ₹41,273.00 crore, up 53.0% YoY and 15.8% QoQ
• Secured to Unsecured on-book mix at 57:43
• Net Interest Income was ₹768.00 crore, +13.6% YoY
• Pre-Provision Operating Profit (PPoP) was ₹325.00 crore
• Profit After Tax (PAT) stood at ₹63.00 crore

Asset Quality and Capital Adequacy

The company maintained stable asset quality with Gross NPA at 1.84% and Net NPA at 0.85%. The Provision Coverage Ratio stood at 53.93%. Poonawalla Fincorp's Capital Adequacy Ratio was 20.55% (Tier-1 at 19.02%), well above the regulatory requirement of 15%.

Strategic Capital Infusion

In a significant move, the Board of Directors approved raising funds amounting to approximately ₹1,500.00 crore via the issuance of equity shares on a preferential basis to the promoter, subject to shareholders' approval. This strategic capital infusion 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 its newly launched businesses:

• PL Prime: Launched industry-first PL Prime Digital 24x7 in March 2025
• Gold Loan: 80 branches launched to date, with plans to reach 400 branches by March 2026
• Consumer Durable Loan: Live with 3,000+ dealers across ~160 locations
• Commercial Vehicle Loan: Commenced operations across 27 locations in 10 states
• Education Loan: Onboarded 150+ dedicated sales team and ~100 partners

The 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's strategic moves, including the capital infusion and expansion of new business lines, position Poonawalla Fincorp for continued growth in the competitive NBFC landscape. The focus on a diversified product portfolio and expansion of the 'Phygital' model through branch launches are expected to drive further growth and market penetration.

As Poonawalla Fincorp continues to execute its growth strategy, investors and stakeholders will be watching closely to see how these initiatives translate into sustained financial performance and market share gains in the coming quarters.

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, showcasing strong growth and strategic initiatives.

Strong AUM Growth and Financial Performance

The company reported a robust 53% year-on-year growth in Assets Under Management (AUM), reaching ₹41,273.00 crore. This significant increase was accompanied by a 15.8% quarter-on-quarter growth. The Net Interest Income (NII), including fees and other income, grew by 13.6% YoY to ₹768.00 crore during the quarter.

Key Financial Highlights

Strategic Capital Infusion

In a significant move, the Board of Directors approved raising funds amounting to approximately ₹1,500.00 crore through the issuance of equity shares on a preferential basis to the promoter. This decision is subject to shareholders' approval and underscores the promoter's confidence in the company's long-term growth trajectory.

Expansion of Debt Securities Limit

Poonawalla Fincorp has also increased its debt securities fundraising limit to ₹20,000.00 crore from the previous ₹10,000.00 crore. This enhancement in the limit for raising funds through issuance of Non-Convertible Debt Securities on a private placement basis reflects the company's ambitious growth plans.

New Product Launches and Business Update

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 to date across Gujarat, Haryana, Rajasthan, and Maharashtra
• Commercial Vehicle Loan: Commenced business across 27 locations in 10 states
• Education Loan: Onboarded 150+ dedicated sales team along with ~100 partners

The new products' disbursement contributed 11% to total disbursement, indicating successful market penetration.

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

With the strong financial performance, strategic capital infusion, and expansion of product offerings, Poonawalla Fincorp appears well-positioned to capitalize on growth opportunities in the consumer and MSME finance sectors. The company's focus on maintaining asset quality while driving growth suggests a balanced approach to expansion in the competitive NBFC landscape.

As the company continues to execute its growth strategy, investors and stakeholders will be watching closely to see how these initiatives translate into sustained financial performance and market share gains in the coming quarters.