Poonawalla Fincorp Reports 406.5% Profit Surge in Q2FY27
Poonawalla Fincorp's net profit soared to ₹375 crore in Q2FY27, marking a significant year-on-year increase.
Net profit increased to ₹375 crore, up 406.5% YoY.
Net interest income rose by 75.7% to ₹1,589 crore.
Gross non-performing assets improved to 1.20%.
Poonawalla Fincorp Ltd announced a remarkable increase in its net profit for the second quarter of FY27, reaching ₹375 crore, a staggering 406.5% rise compared to the same period last year. This surge is attributed to a robust growth in net interest income (NII), which saw a year-on-year increase of 75.7%, amounting to ₹1,589 crore.
The company reported significant growth in its assets under management (AUM), which climbed to ₹74,008 crore, reflecting a 75.6% increase year-on-year and a 12.3% rise quarter-on-quarter. The introduction of new products has played a crucial role, contributing 18% to the AUM, while the secured on-book mix remained stable at 52%. Poonawalla Fincorp's retail lending products have shown strong performance, indicating a healthy demand in the market.
In terms of asset quality, the gross non-performing assets (GNPA) improved to 1.20%, down 17 basis points from the previous quarter and 39 basis points year-on-year. The company reported no accelerated write-offs during this quarter, which reflects positively on its credit management practices. Additionally, the return on assets (ROA) increased to 2.18%, showing a 20 basis points improvement quarter-on-quarter and 149 basis points year-on-year.
Poonawalla Fincorp's capital adequacy ratio (CAR) stood at 18.68%, with a debt-to-equity ratio of 4.30 times as of September 30, 2026. The company is targeting a compound annual growth rate (CAGR) of approximately 35-40% for its AUM over the next few years. In the personal loan segment, the average monthly disbursement reached around ₹577 crore in Q2FY27, an increase from ₹537 crore in the previous quarter.
To enhance its distribution capabilities, Poonawalla Fincorp has expanded its gold loan branch network to 550 locations. The company utilizes various sourcing channels, including direct selling agents, digital platforms, tele-calling, and its in-house sales team. The shares of Poonawalla Fincorp Ltd closed at ₹448.00, reflecting a gain of ₹9.80 or 2.24% on the Bombay Stock Exchange.
