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.

Poonawalla Fincorp Limited has announced its investor and analyst presentation for the quarter and nine months ended December 31, 2025, showcasing robust financial performance and strategic growth initiatives. The company filed this presentation under Regulation 30 of SEBI Listing Regulations on January 16, 2026.

Strong Financial Performance in Q3FY26

The company delivered impressive financial metrics during the third quarter of FY26, demonstrating strong momentum across key parameters:

The strong AUM growth of 78% year-on-year reflects the company's successful expansion strategy and market penetration across diverse product segments.

Enhanced Asset Quality Performance

Poonawalla Fincorp demonstrated continued improvement in asset quality metrics during Q3FY26, reflecting the effectiveness of its risk management framework:

The sequential improvement in both gross and net Stage 3 assets indicates robust credit underwriting standards and effective collection mechanisms.

Capital Augmentation and Growth Strategy

Poonawalla Fincorp has undertaken significant capital strengthening measures to support its ambitious growth plans. The company raised ₹1,500.00 crores from promoters during Q2FY26, demonstrating strong promoter confidence in the business model.

This capital infusion positions the company to continue its aggressive growth trajectory while maintaining healthy leverage ratios.

Product Portfolio Diversification

The company has successfully diversified its product portfolio, with new products contributing significantly to business growth. New products contributed 20% to total disbursements during Q3FY26, including:

The existing product portfolio continues to perform well, with Loan Against Property representing the largest segment at ₹15,077.00 crores (27.40% of AUM), followed by Consumer Loans at ₹9,805.00 crores (17.80% of AUM).

Technology and AI Integration

Poonawalla Fincorp has implemented comprehensive AI and digital transformation initiatives, with 57 AI solutions deployed across various functions. Of these, 30 solutions have been successfully delivered while 27 are underway. The AI implementations span multiple areas including Credit & Risk Management (8 solutions), HR Operations (9 solutions), Operations (7 solutions), Audit and Compliance (6 solutions), Customer Service (5 solutions), and Finance (5 solutions). These technology initiatives aim to improve risk efficiency, enhance productivity, and deliver superior customer experience while supporting the company's scale ambitions.