- Poonawalla Fincorp's net profit rose nearly five-fold to Rs 308 crore in Q1 FY27
- Total income surged 77.8% year-on-year to Rs 2,337 crore for the quarter
- Net interest margin improved to 9.10% and PPOP increased 12.9% sequentially
Poonawalla Fincorp Ltd. reported a sharp jump in earnings for the June quarter, with net profit rising nearly five-fold year-on-year, supported by healthy growth in income, improving margins and stable asset quality.
The non-banking financial company (NBFC) posted a net profit of Rs 308 crore for the first quarter of fiscal year 2027, compared with Rs 62.6 crore in the corresponding period last year. On a sequential basis, profit rose from Rs 255 crore reported in the March quarter.
Total income surged 77.8% year-on-year to Rs 2,337 crore from Rs 1,314 crore, while assets under management (AUM) stood at Rs 67,054 crore as of June 30, 2026.
Net interest income, including fees and other income, rose 10.9% sequentially to Rs 1,415 crore. Net interest margin (NIM), including fees and other income, improved by 5 basis points quarter-on-quarter to 9.10% from 9.05%.
Pre-provision operating profit (PPOP) increased 12.9% sequentially to Rs 785 crore during the quarter.
The company also reported an improvement in profitability metrics. Return on Assets (RoA) rose to 1.98% in Q1 FY27 from 1.81% in the previous quarter and 0.68% in the year-ago period.
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Asset quality remained stable, with Gross Non-Performing Assets (GNPA) improving to 1.37% from 1.44% in the March quarter. Net Non-Performing Assets (NNPA) also declined to 0.70% from 0.74%, while credit cost as a percentage of average AUM eased to 2.40% from 2.51%.
Stage 1 assets accounted for 97.6% of the on-book loan portfolio, marginally higher than 97.5% in the previous quarter, reflecting the continued strength of the company's loan book. The secured-to-unsecured on-book portfolio mix stood at 53:47.
Poonawalla Fincorp maintained a strong capital position, with a Capital Adequacy Ratio of 19.46%, including a Tier-I ratio of 18.37%, comfortably above the regulatory requirement of 15%. The company also reported a liquidity buffer of Rs 4,012 crore as of June 30, 2026.
The cost of borrowing increased marginally by 9 basis points sequentially to 7.72% during the quarter.
On the technology front, the company continued to expand its artificial intelligence initiatives. It added 25 new AI projects during the quarter, taking the total number of AI projects to 101, of which 50 have already been successfully implemented. The company said these initiatives are aimed at enhancing operational efficiency, customer experience and risk management capabilities.
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