Poonawalla Fincorp Limited, a non-deposit taking systemically important NBFC focusing on consumer and MSME finance, announced its unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27) pursuant to Regulation 30 of the SEBI Listing Regulations.

Financial Performance Highlights for Q1 FY27 (Quarter Ended June 30, 2026)

  • Assets Under Management (AUM): ₹67,054 crore
  • Net Interest Income (including fees and other income): ₹1,415 crore, representing a 10.9% quarter-on-quarter (QoQ) growth
  • Net Interest Margin (NIM) (including fees and other income): 9.10%, an improvement of 5 basis points from 9.05% in Q4 FY26
  • Pre-Provisioning Operating Profit (PPoP): ₹785 crore, up 12.9% QoQ
  • Profit After Tax (PAT): ₹308 crore, a 20.8% increase from ₹255 crore in Q4 FY26
  • Return on Assets (RoA): 1.98%, compared to 1.81% in Q4 FY26 and 0.68% in Q1 FY26

Asset Quality and Risk Metrics

  • Gross Non-Performing Assets (GNPA): 1.37%, improved from 1.44% in Q4 FY26
  • Net Non-Performing Assets (NNPA): 0.70%, improved from 0.74% in Q4 FY26
  • Credit Cost (as a percentage of average AUM): 2.40%, compared to 2.51% in Q4 FY26
  • Stage 1 Assets: 97.6% of on-book assets, compared to 97.5% in Q4 FY26
  • Secured to Unsecured on-book mix: 53:47

Capital and Liquidity Position

  • Capital Adequacy Ratio: 19.46% as of June 30, 2026 (Tier-1 capital at 18.37%), significantly above the regulatory requirement of 15%
  • Liquidity Buffer: ₹4,012 crore as of June 30, 2026
  • Cost of Borrowing: 7.72% for the quarter, which is 9 basis points higher than the previous quarter (Q4 FY26)

Operational and Strategic Updates

  • The company added 25 new AI projects during the quarter, bringing the total number of AI projects to 101.
  • Of these, 50 AI projects have been successfully implemented.
  • The company employed 6,459 people as of June 30, 2026.

Management Commentary

Mr. Arvind Kapil, Managing Director and CEO, commented on the results, stating that the quarter represents a step towards sustained profitability. He highlighted the strengthening of RoA and improved asset quality. He noted that investments in new businesses are showing strong traction and that disbursement yields are on a positive trajectory. He emphasized that the company's AI initiatives are delivering structural operational expense efficiency and that these improvements are structural, not cyclical, underscoring the durability of the earnings trajectory.

Company Background

Poonawalla Fincorp Limited is a Cyrus Poonawalla group-promoted NBFC, registered with the Reserve Bank of India (RBI). The company has been in operation for nearly three decades and is listed on both BSE and NSE. Its financial services offerings include Loan Against Property, Gold Loans, Prime Personal Loans, Education Loans, Consumer Durable Loans, Business Loans, Instant Consumer Loans, Commercial Vehicle Loans, Mid-Market, Pre-Owned Car Finance, Loans for Professionals, Machinery Loans, and Shopkeeper Loans.