Kotak Mahindra Mutual Fund has disclosed crossing the 5% shareholding threshold in Poonawalla Fincorp Limited following a recent acquisition of equity shares through open market transactions. The disclosure was made in compliance with SEBI's Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011.

Share Acquisition Details

The mutual fund acquired 702,046 additional equity shares of Poonawalla Fincorp on April 07, 2026, through open market purchases. This acquisition increased Kotak Mahindra Mutual Fund's total holding in the company from 40,128,440 shares to 40,830,486 shares.

Regulatory Compliance

The acquisition triggered the mandatory disclosure requirement under Regulation 29(1) of SEBI SAST Regulations as the mutual fund's holding crossed the 5.00% threshold. Kotak Mahindra Mutual Fund confirmed that it does not belong to the promoter or promoter group of Poonawalla Fincorp Limited.

Company Profile

Poonawalla Fincorp Limited's equity shares are listed on both BSE Limited and the National Stock Exchange of India Limited. The company has a total equity share capital of 81,28,17,658 equity shares of Rs. 2 each, which remained unchanged before and after the acquisition.

Investment Structure

The shares were acquired through various schemes of Kotak Mahindra Mutual Fund, with Kotak Mahindra Asset Management Company Limited serving as the investment manager. The acquisition was executed through regular open market transactions without any special features or conversion rights attached to the securities.

The disclosure was signed by Jolly Bhatt, Compliance Officer at Kotak Mahindra Asset Management Company Limited, and submitted to the stock exchanges for record.

Poonawalla Fincorp Limited has delivered exceptional financial performance for the nine months ended December 31, 2025, marking a significant turnaround in its business operations. The non-banking financial company reported comprehensive growth across key financial metrics, demonstrating strong operational efficiency and strategic execution.

Financial Performance Overview

The company's financial results showcase remarkable improvement across all major parameters. Total income surged to ₹4,675.26 crores for the nine months ended December 31, 2025, representing substantial growth from ₹3,049.53 crores in the corresponding period of 2024.

Revenue Composition and Growth

The company's revenue streams demonstrated strong performance across categories. Interest income, the primary revenue driver, reached ₹4,247.22 crores compared to ₹2,806.03 crores in the previous year. Fees and commission income also showed robust growth, increasing to ₹281.00 crores from ₹125.20 crores.

Balance Sheet Strength

The company's balance sheet reflects substantial growth and improved asset quality. Total assets expanded significantly to ₹54,183.17 crores as of December 31, 2025, compared to ₹35,029.94 crores as of March 31, 2025. The loan portfolio, representing the core business, grew to ₹51,106.95 crores from ₹32,694.96 crores.

Operational Efficiency Improvements

The company demonstrated significant improvements in operational efficiency and cost management. Total expenses increased to ₹4,292.72 crores from ₹3,265.15 crores, but the growth was proportionally lower than revenue growth, indicating improved operational leverage.

Finance costs rose to ₹1,922.61 crores from ₹1,056.71 crores, reflecting the expanded business scale. However, impairment on financial instruments decreased substantially to ₹794.22 crores from ₹1,299.99 crores, suggesting better asset quality management.

Earnings Per Share Performance

The company's earnings per share showed remarkable improvement, with basic earnings per share reaching ₹3.65 compared to a loss per share of ₹2.08 in the previous year. Diluted earnings per share stood at ₹3.64, reflecting the positive impact of the company's turnaround strategy.

Capital Structure and Funding

The company strengthened its capital position through strategic fundraising initiatives. During the period, Poonawalla Fincorp issued 33,148,102 fully paid-up equity shares at ₹452.51 per share through preferential allotment to Rising Sun Holdings Private Limited, raising approximately ₹15,000 crores.

Debt securities increased significantly to ₹13,740.05 crores from ₹1,663.99 crores as of March 31, 2025, while borrowings other than debt securities grew to ₹28,283.02 crores from ₹23,978.97 crores, supporting the expanded lending operations.

Future Outlook and Strategic Initiatives

The Board of Directors approved a proposal to raise funds through qualified institutional placement for up to ₹5,500 crores, subject to regulatory approvals. This initiative demonstrates the company's commitment to further strengthening its capital base and supporting future growth plans.

The financial statements were approved by the Committee of Directors on April 9, 2026, and have been recommended by the Audit Committee. The results reflect the company's successful execution of its strategic initiatives and position it well for continued growth in the competitive NBFC sector.