Poonawalla Fincorp Reports 20.8% QoQ Growth in Profit for Quarter Ended June 30, 2026
Poonawalla Fincorp Limited, a non-deposit taking systemically important NBFC specializing in consumer and MSME finance, has announced its unaudited financial results for the quarter ended June 30, 2026. The company reported a significant rise in profitability, with Profit After Tax (PAT) climbing to ₹ 308 crore in Q1FY27, representing a 20.8% growth compared to the ₹ 255 crore recorded in Q4FY26.The company maintained an Assets Under Management (AUM) position of ₹ 67,054 crore. Net Interest Income (NII), which includes fees and other income, grew by 10.9% QoQ to reach ₹ 1,415 crore. During the same period, the Return on Assets (RoA) strengthened to 1.98%, up from 1.81% in Q4FY26 and 0.68% in Q1FY26.
Key Financial Performance Metrics
The company demonstrated improved margins and steady growth in its Pre Provision Operating Profit (PPoP). The Net Interest Margin (NIM) saw a 5 bps improvement, rising to 9.10% from 9.05% in the previous quarter.| Metric | Q1FY27 (June 30, 2026) | Q4FY26 |
|---|---|---|
| Assets Under Management (AUM) | ₹ 67,054 crore | - |
| Net Interest Income (inc. fees and other income) | ₹ 1,415 crore | - |
| Net Interest Margin (NIM) | 9.10% | 9.05% |
| PPoP | ₹ 785 crore | - |
| Profit After Tax (PAT) | ₹ 308 crore | ₹ 255 crore |
| Return on Assets (RoA) | 1.98% | 1.81% |
| GNPA | 1.37% | 1.44% |
| NNPA | 0.70% | 0.74% |
| Credit Cost (% of average AUM) | 2.40% | 2.51% |
Asset Quality and Capital Position
Poonawalla Fincorp reported stable asset quality, with a Gross Non Performing Asset (GNPA) ratio of 1.37% and a Net Non Performing Asset (NNPA) ratio of 0.70%. Stage 1 Assets accounted for 97.6% of on-book assets in Q1FY27. The company's secured to unsecured on-book mix stood at 53:47.The Capital Adequacy Ratio remains healthy at 19.46%, with Tier-1 capital at 18.37%, exceeding the regulatory requirement of 15%. The liquidity buffer as of June 30, 2026, was reported at ₹ 4,012 crore.
Operational Updates and Technology Integration
The company expanded its technology footprint by adding 25 new AI projects this quarter. This brings the total number of cutting-edge AI projects to 101, with 50 projects successfully implemented to date. The cost of borrowing for the current quarter stood at 7.72%, which is 9 bps higher than in Q4FY26.Commenting on the performance, Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, stated that the quarter reflects a step toward sustained profitability. He noted that RoA has strengthened and asset quality has improved across products. Kapil highlighted that investments in new businesses are showing strong traction and that the company's AI initiatives are beginning to deliver structural operational efficiency.
POONAWALLA Stock Price Movement
Poonawalla Fincorp Limited shares rallied today to settle at ₹481, gaining 1.87% after a steady climb from the session open. The stock saw significant interest with 1.45 million shares changing hands during the trading session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.