Poonawalla Fincorp Limited announced strong unaudited financial results for the quarter ended December 31, 2025, demonstrating robust growth across key performance indicators. The systemically important NBFC, focusing on consumer and MSME finance, delivered impressive year-on-year and quarter-on-quarter improvements in its financial metrics, with Net Interest Income surging 60.6% year-over-year to ₹1,080 crore.

Financial Performance Highlights

The company's financial performance for Q3FY26 showed significant momentum across multiple parameters:

The company's Net Interest Margin improved to 8.62% in Q3FY26 compared to 8.40% in Q2FY26, indicating enhanced profitability. The secured to unsecured on-book mix maintained a balanced ratio of 56:44, reflecting the company's diversified lending portfolio.

Asset Quality and Risk Management

Poonawalla Fincorp demonstrated stable asset quality metrics during the quarter, with improvements in key risk indicators:

The improvement in asset quality metrics reflects the company's disciplined risk management approach and strengthening credit processes. Stage 1 assets, representing performing loans, increased to 97.4% of on-book assets.

Capital Position and Liquidity

The company maintained a strong capital position with a Capital Adequacy Ratio of 18.17%, including Tier-1 capital at 17.15%, significantly above the regulatory requirement of 15.00%. This robust capital base provides adequate cushion for future growth initiatives.

Poonawalla Fincorp's liquidity position remained strong with a buffer of ₹6,488 crore as of December 31, 2025. The cost of borrowings decreased to 7.65% for the quarter, representing a 4 basis points reduction compared to Q2FY26, indicating improved funding efficiency.

Technology and Innovation

The company continued its focus on technological advancement by adding 12 new AI projects during the quarter, bringing the total to 57 cutting-edge AI projects. This technological investment supports the company's operational efficiency and customer service capabilities.

Management Commentary

Mr. Arvind Kapil, Managing Director and CEO, highlighted the strong performance, stating that the results mark a significant step-up in performance reflecting disciplined execution. He emphasized that the profit after tax doubled quarter-on-quarter, driven by a 36.5% sequential increase in pre-provision operating profit, with return on assets improving to 1.20%.

Business Overview

Poonawalla Fincorp operates as a Cyrus Poonawalla group promoted non-deposit taking systemically important NBFC, registered with the Reserve Bank of India. The company employs 5,264 people as of December 31, 2025, and offers diverse financial services including Loan Against Property, Gold Loans, Personal Loans, Education Loans, Business Loans, and various other lending products across consumer and MSME segments.

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.