Poonawalla Fincorp , a prominent player in the financial services sector, has reported a remarkable turnaround in its financial performance for the second quarter. The company posted a consolidated net profit of 742 crore rupees, marking a significant improvement from a loss of 470 crore rupees in the same period last year.

Revenue Growth

The company's revenue saw substantial growth, reaching 1,542.80 crore rupees compared to 996.50 crore rupees in the corresponding quarter of the previous year, representing a robust year-over-year increase of 54.82%.

Profitability Metrics

Poonawalla Fincorp's profitability metrics showed notable improvements:

Operational Efficiency

The company's operational performance also showed positive trends:

Financial Position

Poonawalla Fincorp's balance sheet reflects its improved financial position:

The significant reduction in expenses, coupled with the substantial increase in sales, has contributed to the company's improved profitability.

Conclusion

Poonawalla Fincorp's Q2 performance demonstrates a strong turnaround, with significant improvements across key financial metrics. The company's ability to grow revenue while managing expenses effectively has resulted in a return to profitability, positioning it well for future growth in the competitive financial services sector.

Poonawalla Fincorp Limited , a non-deposit taking systemically important NBFC, has reported strong financial results for the quarter ending September 30, 2025, marking significant growth in its Assets Under Management (AUM) and profitability.

Key Financial Highlights

• AUM stood at ₹47,701.00 crore, up 68.0% YoY and 15.6% QoQ
• Net Interest Income (including fees and other income) at ₹905.00 crore, up 40.3% YoY
• Pre-Provision Operating Profit (PPoP) of ₹387.00 crore, up 38% YoY
• Profit After Tax (PAT) of ₹74.00 crore for the quarter

Asset Quality and Financial Metrics

• Gross Non-Performing Assets (GNPA) improved to 1.59% in Q2FY26 from 1.84% in Q1FY26
• Net Non-Performing Assets (NNPA) at 0.81% in Q2FY26
• Capital Adequacy Ratio at 20.85%, well above the regulatory requirement
• Cost of Borrowings at 7.69%, 35 bps lower than Q1FY26

Expansion and Business Strategy

Poonawalla Fincorp has outlined an expansion strategy, focusing on both digital and physical growth:

1. Branch Expansion: The company plans to open 400 new branches, expanding its physical presence.

2. Product Diversification: Six new products have been launched, contributing to 8% of the total AUM.

3. Digital Initiatives: The company is implementing an AI-first lending model to drive scalability.

4. Secured to Unsecured Mix: The on-book mix stands at 56:44, indicating a balanced approach to risk.

5. AUM Composition:

Management Commentary

Mr. Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, stated, "We delivered strong AUM growth this quarter supported by increased contribution from our new business verticals. This reflects the successful execution of our diversification strategy. Improved liability management, particularly through cost-effective NCD issuances, strengthened our funding profile. We remain focused on driving sustainable growth with prudent risk management."

Future Outlook

The company's focus on technology-led efficiency and AI-driven lending models positions it for future growth. The expansion of its branch network and product portfolio is expected to drive further AUM growth and market penetration.

Poonawalla Fincorp's strong financial performance, coupled with its strategic initiatives, indicates a positive trajectory for the company in the coming quarters. The balanced approach to secured and unsecured lending, along with improved asset quality, suggests a prudent growth strategy that may appeal to investors looking for stability and growth potential in the NBFC sector.