Poonawalla Fincorp Q2 Profit Jumps Fivefold to ₹375 Crore

Poonawalla Fincorp, the Pune-based non-banking financial company, reported a net profit of ₹375 crore for the quarter ended September 30, 2026, up about fivefold from ₹74 crore in the same quarter last year, according to its unaudited results filed with the stock exchanges.

Profit grew about 22% sequentially from ₹308 crore in the April–June quarter. Net interest income rose 80.6% year-on-year to ₹1,380 crore from ₹764 crore, while total interest income climbed 72.3% to ₹2,416 crore.

Margins, asset quality improve

Assets under management stood at ₹74,008 crore at the end of September. Net interest margin, including fees and other income, widened to 9.26% from 9.10% in the June quarter, the company said.

Operating profit more than doubled to ₹877 crore from ₹387 crore a year earlier. Operating expenses rose 37.5% to ₹712 crore as the lender continued to expand its branch network, including 550 gold loan branches.

Asset quality strengthened during the quarter. Gross NPA eased to 1.20% from 1.37% in the previous quarter, and net NPA fell to 0.61% from 0.70%. Stage 1 assets accounted for 97.9% of the on-book portfolio.

The improvement in asset quality was visible on a year-on-year basis too, with gross NPA lower by 39 basis points compared with the September 2025 quarter.

Credit costs rose 30.6% year-on-year to ₹376 crore in absolute terms, but declined as a share of average AUM to 2.19% from 2.40% in the June quarter. Return on assets improved to 2.18% from 1.98% in the previous quarter and 1.81% in the March quarter.

Capital and funding

The company reported a capital adequacy ratio of 18.68%, with Tier 1 capital at 17.15%, and a liquidity buffer of ₹6,526 crore. Its cost of borrowing edged up 4 basis points sequentially to 7.76%. The loan book is split 52:48 between secured and unsecured products.

Managing Director and CEO Arvind Kapil attributed the performance to AUM growth, better margins and fee income, and lower credit costs, according to the company’s earnings release. He also pointed to the lender’s investments in artificial intelligence capabilities as a factor in its operations.

Market reaction

Shares of Poonawalla Fincorp closed 2.15% higher at ₹447.30 on the NSE on Friday, against a previous close of ₹437.90. The stock is still down 7.6% so far in 2026, giving the company a market capitalisation of about ₹39,389 crore.

The results come as rating agencies flag asset quality as the key monitorable for NBFCs in the second half of FY27, with weak monsoon conditions and food inflation weighing on borrowers in some segments.

Investors will now watch whether Poonawalla Fincorp can sustain its loan growth while holding credit costs in check, particularly in its unsecured portfolio, as the festive season lifts consumer credit demand in the October–December quarter.