Poonawalla Fincorp Reports 70% QoQ Profit Surge to Rs 255 Crore in Q4 Results.

Poonawalla Fincorp has reported a robust performance for the March quarter of 2026, showcasing significant sequential growth in profitability, lending income, and asset quality. The company achieved a profit after tax of Rs 255 crore, reflecting a 70% increase from Rs 150 crore in the December quarter. Assets under management (AUM) crossed the Rs 60,000 crore mark, totaling Rs 60,348 crore. The company’s net interest income, which includes fees and additional income, surged 78% year-over-year to Rs 1,276 crore, indicating a strong upward trend in operational efficiency. Pre-provision operating profit climbed to Rs 695 crore, up 109% year-on-year, highlighting effective leverage and increased business volumes.

The company’s asset quality also exhibited improvement, with gross non-performing assets (NPAs) decreasing to 1.44% from 1.51% in the preceding quarter and net NPAs improving from 0.80% to 0.74%. Furthermore, credit costs as a percentage of average AUM eased to 2.51%. Notably, Stage 1 assets, which indicate minimal credit risk, now represent 97.5% of on-book assets, slightly increasing from 97.4%. The secured-to-unsecured on-book mix remained balanced at 54:46, and the capital adequacy ratio stood at a prudent 16.83%, well above regulatory requirements, underscoring a strong capital position.

Looking ahead, Poonawalla Fincorp’s Managing Director and CEO, Arvind Kapil, emphasized that the company has reached an “inflection point” in its growth trajectory. This statement aligns with the recent Rs 2,500 crore qualified institutional placement, projected to raise the simulated capital adequacy ratio to 20.74%. With a liquidity buffer of Rs 7,590 crore and a marginal decrease in borrowing costs to 7.63%, the company appears well-positioned for future expansion. Additionally, the firm remains committed to investing in technology, as evidenced by the implementation of 76 AI-led initiatives, with 42 already operational. This strategic focus on innovation is expected to further enhance its competitive edge in the financial services landscape.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)