Poonawalla Fincorp Shares Jump Following ₹1,500 Crore Preferential Issue; Financials Witness Varied Q1 Performance

Mumbai, September 18, 2025 – Poonawalla Fincorp Limited (NSE: POONAWALLA, BSE: 524000) has seen its shares bounce 14% after the board approved a preferential share allotment of ₹1,499.98 crore to its promoter Rising Sun Holdings Pvt Ltd. The allotment at an issue price of ₹452.51 per share has boosted the paid-up equity capital, reflecting optimism regarding long-term capital needs even as recent quarterly performance indicates pressure on profits.

Preferential Allotment to Promoter

On September 17, 2025, the board approved the allotment of 3,31,48,102 fully paid-up equity shares to Rising Sun Holdings Pvt Ltd. These equity shares will be pari-passu with current equity shares. Subsequent to this, the issued and paid-up equity share capital increased from ₹155.84 crore (77.92 crore shares) to ₹162.47 crore (81.23 crore shares). The allotment price and process have been approved in-principle by both NSE and BSE as per SEBI guidelines.

Q1 FY26 Financials & Business Update

While the injection gives a stronger balance sheet, the Q1 FY26 result of Poonawalla Fincorp saw a sharp decline in net profit. The firm recorded a net profit of ₹63 crore, down approximately 78.5% year-over-year, while total income increased to ₹1,314.01 crore from around ₹996 crore during the previous year. Costs more than doubled to approximately ₹1,231 crore from ₹606 crore for the same quarter last year. Assets Under Management (AUM) registered healthy growth, up 53% YoY at ₹41,273 crore, with consistent performance across product segments.

Stock Performance & Market Reaction

After the preferential allotment announcement, Poonawalla Fincorp shares surged and traded at higher levels. Poonawalla Fincorp stock jumped 14.07% to ₹510.00, gaining ₹62.90 in today’s trade as of 10:24 am IST. Earlier during the session, it hit levels higher than that in strong interest, with the stock hitting a 52-week high of about ₹502.00. The 52-week low is at about ₹267.25. Market reaction shows a combination of investor optimism from the capital injection and wariness due to the steep fall in profit.

Future Outlook

The new capital injection is likely to give Poonawalla Fincorp more room to increase its loan book, especially in retail and SME segments where growth need is high. Experts are of the view that the funds could be used tactically to enhance digital infrastructure, enhance underwriting norms, and expand geographies. Although increasing costs and margin pressure continue to be near-term issues, the long-term picture is supportive if the firm can translate its greater AUM into profitable returns over time. Market players will also be monitoring for possible credit rating revisions, which would reduce borrowing costs and otherwise benefit further improvement in growth opportunities.

REF: https://nsearchives.nseindia.com/corporate/TUSHARPOONAWALLA_17092025185434_PFL_SE_Intimation_Allotment_of_Shares_17092025_1.pdf

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