Poonawalla Fincorp Q2 profit jumps 405% to ₹375 crore YoY; AUM rises 55%

Poonawalla Fincorp reported a 405.2% year-on-year increase in consolidated profit after tax (PAT) to ₹374.85 crore for the September quarter, compared with ₹74.20 crore in the year-ago period, supported by growth in income, improved margins and lower credit costs.

The non-banking financial company’s assets under management (AUM) rose 55.1% year-on-year to ₹74,008 crore as of September 30, 2026. Net interest income, including fees and other income, increased 75.6% year-on-year to ₹1,589 crore.

On a sequential basis, profit rose 21.8% from ₹307.71 crore in the June quarter, while AUM grew 10.4%. Net interest income increased 12.3% quarter-on-quarter.

Total revenue from operations rose 70.2% year-on-year to ₹2,624.50 crore in Q2FY27, compared with ₹1,542.30 crore a year earlier.

Margins improve, asset quality strengthens

Poonawalla Fincorp’s net interest margin, including fees and other income, improved to 9.26% in the September quarter from 9.10% in the preceding quarter. Return on assets rose to 2.18% from 1.98% in Q1FY27.

Pre-provision operating profit increased 11.8% sequentially to ₹877 crore. Credit cost as a percentage of average AUM declined to 2.19% from 2.40% in the June quarter.

Asset quality also improved, with gross non-performing assets falling to 1.20% from 1.37% in the preceding quarter. Net non-performing assets declined to 0.61% from 0.70%. Stage 1 assets accounted for 97.9% of on-book assets, compared with 97.6% in Q1FY27.

The secured share of the company’s on-book loan portfolio stood at 52% at the end of September.

Commenting on the results, managing director and CEO Arvind Kapil said, “This quarter marks a decisive inflection point in establishing a highly resilient, self-sustaining earnings engine through simultaneous, structural improvements across our four core performance vectors.”

“We have delivered disciplined AUM expansion while enriching total realizations via NIM and fee income optimization, demonstrating strong pricing power across core and newly incubated verticals,” he said.

Kapil added that improvements in asset quality had driven credit costs lower, lifting return on assets. He also cited the company’s proprietary artificial intelligence capabilities as a factor supporting the gains.

New businesses gain traction

Poonawalla Fincorp said its newer lending businesses contributed 28% of total disbursements in Q2FY27, with disbursements exceeding ₹4,400 crore. These businesses include personal loans under its Prime offering, gold loans, consumer durable loans, commercial vehicle loans, education loans and shopkeeper loans.

Its gold loan operations had expanded to 550 branches. The company also reported a monthly disbursement run rate of around ₹127 crore for commercial vehicle loans.

The company’s capital adequacy ratio stood at 18.68%, including a Tier-I capital ratio of 17.15%, as of September 30. Its liquidity buffer was ₹6,526 crore.

Poonawalla Fincorp also said it added 42 AI projects during the quarter, taking its total to 143, of which 84 had been implemented.

Shares of Poonawalla Fincorp ended 1.96% lower at ₹446.50 apiece on the NSE on Friday. The stock has declined more than 15% over the past year, underperforming the Nifty 500, which has fallen nearly 6% during the same period.