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.

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 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.