Poonawalla Fincorp, a non-deposit-taking NBFC, announced its financial results for the quarter ended June, reporting a net profit of ₹63 crore, a steep decline from ₹292 crore in the year-ago period, marking a 78.5% year-on-year (YoY) drop. However, profit remained flat on a sequential basis.
The decline in profit was primarily due to a sharp rise in operating expenses, which surged ₹199 crore YoY to ₹443 crore. This also impacted the pre-provision operating profit (PPoP), which fell nearly 25% YoY to ₹325 crore. The company attributed this decline to ongoing investments in new businesses and a shift toward a more secured loan book.
Net interest income (NII) came in at ₹639 crore, up from ₹576 crore a year ago. The company’s assets under management (AUM) rose 53% YoY to ₹41,273 crore in June 2025, compared to ₹26,972 crore in June 2024, driven by strong performance across all product segments.
MSME loans contributed the highest share at 36%, followed by loans against property at 25% and personal and consumer loans at 23%. The Point of Care (POC) segment accounted for 13% of AUM, while discontinued products and others contributed 1% and 2%, respectively. The secured-to-unsecured on-book mix stood at 57:43.
Asset quality remained stable in Q1FY26, with Gross NPA (GNPA) steady at 1.84% and Net NPA (NNPA) unchanged at 0.85%. Credit cost improved, declining from ₹253 crore in Q4FY25 to ₹241 crore in Q1FY26. As a percentage of AUM, credit cost dropped significantly from 3.14% to 2.61%. The Provision Coverage Ratio (PCR) stood at 53.93%, which remains adequate, though slightly lower compared to previous quarters.
The company also said its Board of Directors, in its meeting held today, approved raising approximately ₹1,500 crore through a preferential issue of equity shares to the promoter, subject to shareholders’ approval.
Commenting on the results, Mr. Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, said, “With credit cost significantly reducing on an overall basis by 53 bps QoQ, a risk-calibrated AUM increase of 15.8% QoQ, and a ₹1,500 crore capital infusion on a preferential basis by the promoter, the company is strengthened and well-positioned to support its growth plans. Poonawalla Fincorp is well-poised to build a risk-first, sustainable, and profitable model.”
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