Poonawalla Fincorp Limited announced a major capital-raising plan of up to ₹25,500 crores alongside reporting exceptional Q3 FY26 financial results. The company's board meeting held on January 16, 2026, approved comprehensive fundraising initiatives, delivered strong quarterly performance, and made key leadership appointments to support future growth.

Outstanding Financial Performance in Q3 FY26

The company delivered remarkable financial results for Q3 FY26, showcasing significant improvement across all key metrics. Net profit surged eight-fold year-on-year and more than doubled sequentially, demonstrating strong operational leverage and business momentum.

For the nine months ended December 31, 2025, the company achieved total income of ₹4,675.26 crores compared to ₹3,049.53 crores in the corresponding period of the previous year. The company reported a net profit of ₹287.02 crores for the nine-month period, a remarkable turnaround from the net loss of ₹160.67 crores in the same period last year.

Comprehensive Fundraising Strategy Worth ₹25,500 Crores

The board approved an ambitious fundraising plan combining equity and debt instruments to strengthen the company's capital base for scaling up lending operations. The equity component will support growth initiatives while debt securities will provide flexible funding options.

The equity raise may be undertaken through domestic or international offerings via qualified institutional placement or other permissible routes, subject to shareholder approvals. The debt issuance will include a mix of secured and unsecured instruments, including bonds and subordinated debt, with flexibility on tenure and structure.

Strong Revenue Growth Across Key Segments

The company's revenue growth was driven by substantial increases across all income streams, with interest income and fees showing particularly strong momentum. Net interest income growth of 50% year-on-year highlights the company's expanding lending portfolio and improving yields.

Leadership Enhancement and Asset Quality Metrics

The board approved the appointment of Vikas Pandey as Additional Director and Whole-time Director for a five-year term, effective January 16, 2026, subject to shareholder approval. Pandey brings over two decades of experience in retail banking and has been instrumental in launching five new businesses at Poonawalla Fincorp.

The company maintained healthy asset quality indicators and reported strong operational metrics, including assets under management growth of 77.50% year-on-year to around ₹55,000 crores as of December 31, 2025.

The company's shares closed 1.55% lower at ₹463.95 ahead of the results announcement, though the stock has gained 4.94% over the past month. Notices seeking shareholder approvals for the proposed equity fundraising and board appointment will be issued via the postal ballot process.

Poonawalla Fincorp Limited delivered exceptional financial performance in Q3FY26, demonstrating strong operational momentum and strategic growth initiatives. The non-banking financial company announced its quarterly results for the period ended December 31, 2025, alongside significant corporate developments approved by the Board of Directors.

Strong Financial Performance in Q3FY26

The company reported remarkable growth across key financial metrics for the quarter ended December 31, 2025. Net profit after tax surged dramatically to ₹150.22 crores, representing a substantial 702% increase compared to ₹18.73 crores in the corresponding quarter of the previous year.

Total revenue from operations reached ₹1,818.42 crores, marking a 72% year-on-year growth from ₹1,057.03 crores. Interest income, the primary revenue driver, grew 66% to ₹1,659.65 crores, reflecting the company's expanding loan portfolio and improved asset quality.

Nine-Month Performance Shows Consistent Growth

For the nine months ended December 31, 2025, the company demonstrated sustained performance improvement. Total income increased to ₹4,675.26 crores compared to ₹3,049.53 crores in the corresponding period of FY25. The company achieved a net profit of ₹287.02 crores for the nine-month period, a significant turnaround from the loss of ₹160.67 crores in the previous year.

Comprehensive Capital Raising Strategy

The Board of Directors approved a significant capital raising plan of up to ₹5,500 crores through qualified institutional placement and other permissible modes. This fundraising initiative will be conducted in one or more tranches through domestic or international offerings, subject to shareholder approval and regulatory clearances. Additionally, the Board approved raising funds through non-convertible debt securities on private placement basis for up to ₹20,000 crores for FY2026-27, with authority delegated to the Finance Committee.

Leadership Enhancement with New Executive Director

The company strengthened its leadership team with the appointment of Vikas Pandey as Additional Director and Whole-time Director (Executive Director) for a five-year term, effective January 16, 2026. Pandey brings over two decades of experience in retail banking, distribution, and business management, having previously served in senior roles at HDFC Bank.

Pandey has been instrumental in launching five new businesses at Poonawalla Fincorp and building robust distribution engines. His appointment is subject to shareholder approval through postal ballot process.

Operational Highlights and Asset Quality

The company's operational performance reflected improved efficiency and asset quality management. Finance costs increased to ₹738.71 crores in Q3FY26 from ₹385.02 crores in Q3FY25, primarily due to business expansion. Impairment on financial instruments decreased to ₹295.47 crores from ₹347.87 crores year-on-year, indicating better asset quality.

Employee benefits expenses grew to ₹284.94 crores, reflecting the company's expansion and team building efforts. The company maintained a gross Stage 3 percentage of 1.51% and net Stage 3 percentage of 0.80%, demonstrating effective risk management practices.

During the nine months ended December 31, 2025, the company issued 33,148,102 equity shares through preferential allotment to Rising Sun Holdings Private Limited at ₹452.51 per share, raising approximately ₹15,000 crores. The company also allotted 1,466,607 equity shares to employees under various stock option plans, reflecting its commitment to employee participation in growth.