Poonawalla Fincorp Ltd. reported a sharp jump in earnings for the September quarter, with net profit rising over 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 375 crore for the second quarter of fiscal year 2027, compared with Rs 74.2 crore in the corresponding period last year. On a sequential basis, profit rose from Rs 308 crore reported in the June quarter.
Total income surged 70% year-on-year to Rs 2,625 crore from Rs 1,543 crore, while assets under management (AUM) stood at Rs 74,008 crore as of September 30, 2026.
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Net interest income, including fees and other income, rose 12.3% sequentially to Rs 1,589 crore. Net interest margin (NIM), including fees and other income, improved by 16 basis points quarter-on-quarter to 9.26% from 9.10%.
Pre-provision operating profit (PPOP) increased 11.8% sequentially to Rs 877 crore during the quarter.
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The company also reported an improvement in profitability metrics. Return on Assets (RoA) rose to 2.18% in Q2 FY27 from 1.98% in the previous quarter.
Asset quality remained stable, with Gross Non-Performing Assets (GNPA) improving to 1.2% from 1.37% in the June quarter. Net Non-Performing Assets (NNPA) also declined to 0.61% from 0.70%, while credit cost as a percentage of average AUM eased to 2.19% from 2.40%.
Stage 1 assets accounted for 97.9% of the on-book loan portfolio, marginally higher than 97.6% in the previous quarter, reflecting the continued strength of the company's loan book. The secured-to-unsecured on-book portfolio mix stood at 52:48.
Poonawalla Fincorp maintained a strong capital position, with a Capital Adequacy Ratio of 18.68%, including a Tier-I ratio of 17.15%, comfortably above the regulatory requirement of 15%. The company also reported a liquidity buffer of Rs 6,526 crore as of September 30, 2026.
The cost of borrowing increased marginally by 4 basis points sequentially to 7.76% during the quarter.
On the technology front, the company continued to expand its artificial intelligence initiatives. It added 42 new AI projects during the quarter, taking the total number of AI projects to 143, of which 84 have already been successfully implemented.
Poonwalla Fincorp Share Price Today
Poonwalla Fincorp shares closed 2.15% lower at Rs 447.30 per share on Friday. The shares have risen 3.02% in one week but fallen 0.47% in one month. The shares are down 7.6% year-to-date and 15.89% in one year.
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