Poonawalla Fincorp Reports Strong 53% YoY AUM Growth to ₹41,273 Crore in Q1 FY26
Poonawalla Fincorp Limited announced robust Q1 FY26 results. Assets Under Management grew 53% YoY to ₹41,273 crore. Net Interest Income increased 13.6% YoY to ₹768 crore. PAT stood at ₹63 crore. GNPA remained stable at 1.84% and NNPA at 0.85%. The company maintained a balanced portfolio with a 57:43 secured to unsecured mix. New business initiatives showed healthy traction. The Board approved raising ₹1,500 crore via preferential equity issue to the promoter. The company's strong performance and capital infusion position it well for future growth in the NBFC sector.
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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:
| Segment | Percentage |
|---|---|
| MSME | 36% |
| Loan against property | 25% |
| Personal and Consumer finance | 23% |
| Pre-owned car finance | 13% |
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.
Historical Stock Returns for Poonawalla Fincorp
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.60% | -1.10% | -1.77% | +55.11% | +12.70% | +1,159.08% |
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