Poonawalla Fincorp AUM Surges 52.9% YoY in Q1 FY26; Liquidity Position at ₹4,450 Cr

Pune, July 4, 2025 – Poonawalla Fincorp Ltd (NSE: POONAWALLA, BSE: 524000) has reported a robust business performance for the quarter ended June 30, 2025 (Q1 FY26). The non-banking financial company (NBFC) saw its Assets Under Management (AUM) surpass ₹41,250 crore, indicating strong year-on-year and sequential growth.

Poonawalla Fincorp’s AUM surged by a remarkable 52.9% year-on-year and 15.8% quarter-on-quarter, reaching ₹41,250 crore. This significant expansion in its lending portfolio highlights the company’s strong growth momentum. Furthermore, the company maintains a healthy liquidity position with reserves of ₹4,450 crore, ensuring financial flexibility.

Key Business Highlights (Q1 FY26)

Financial Performance

Poonawalla Fincorp Ltd (NSE: POONAWALLA, BSE: 524000) has reported a robust business performance for the quarter ended June 30, 2025 (Q1 FY26), as its Assets Under Management (AUM) surged past ₹41,250 crore. This marks a significant 52.9% year-on-year growth and a 15.8% quarter-on-quarter increase, underscoring strong momentum in scaling its lending portfolio while maintaining a prudent risk framework. The company also confirmed a healthy liquidity position with reserves of ₹4,450 crore.

Looking back at the full fiscal year 2025 (FY25), Poonawalla Fincorp’s AUM stood at ₹35,631 crore as of March 31, 2025, representing a 42.5% year-on-year growth. For the full FY25, the company’s Net Interest Income (including fees and other income) was ₹2,708 crore, a 23% year-on-year increase. However, the Profit After Tax (PAT) for FY25 was impacted, recording a loss of ₹(98) crore, primarily due to a one-time accelerated provision of ₹666 crore in Q2 FY25 related to its erstwhile small ticket personal loan (STPL) book and continued investments in new businesses. Despite this, the company showed a sequential recovery in profitability in Q3 FY25 and Q4 FY25.

For Q4 FY25, Poonawalla Fincorp reported a total income of ₹921.73 crore and a Profit After Tax (PAT) of ₹331.70 crore, showing a substantial sequential improvement in profitability from Q3 FY25. The Gross Non-Performing Assets (GNPA) stood at 1.84% as of March 31, 2025, with Net Non-Performing Assets (NNPA) at 0.85%, indicating a stable asset quality. The Capital Adequacy Ratio was strong at 22.94% (Tier-1 at 21.67%) at the end of FY25, well above the regulatory requirement.

Strategic Business Expansion

The company confirmed the successful launch of six new business verticals, which align with its strategic roadmap and previously provided guidance. While specific details of all six new verticals were not explicitly disclosed in this update, previous reports indicate the company’s expansion into segments such as gold loans, commercial vehicle (CV) loans, consumer durable loans, and potentially education loans and used car financing. The management noted “positive traction” across these new initiatives.

Poonawalla Fincorp reaffirmed its “risk-first approach”, backed by robust risk management systems and a diversified asset base. The company stated that it remains focused on long-term, sustainable, and profitable growth.

“As we continue to scale, our focus and commitment stand on business expansion in line with building a long-term, sustainable, profitable model,” the company said in its filing.

Share Price Performance

As of 9:50 AM, the shares of Poonawala Fincorp were trading at ₹474.45, up by 1.73% or ₹8.05. It remains to be seen how the shares perform throughout today’s market session and at what price they close at the end.

What’s Next?

With strong AUM growth and new verticals gaining early traction, Poonawalla Fincorp is well-positioned to maintain its growth momentum in FY26. Investors will closely watch the company’s Q1 financial results for updates on asset quality, net interest margins, and cost ratios. Execution across newly launched loan segments and continued discipline in risk management will be key drivers for long-term performance. Further clarity on disbursement trends and customer acquisition strategies may also shape near-term stock movements.

Poonawalla Fincorp Limited is a listed non-banking financial company (NBFC) engaged in consumer and MSME lending across India. The company is listed on both NSE and BSE and operates with a focus on technology-led, low-risk lending models.

REF: https://nsearchives.nseindia.com/corporate/POONAWALLA_04072025074537_Business_Update_Q1FY26.pdf

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