Poonawalla Fincorp jumps as Q2 PAT grows 22% QoQ
Net interest income, including fees and other income, rose 75.58% YoY and 12.30% QoQ to Rs 1,589 crore. Net interest margin, including fees and other income, improved to 9.26% in Q2 FY27 from 9.10% in Q1 FY27, an expansion of 16 basis points.
Profit before tax stood at Rs 501 crore in Q2 FY27, up 21.90% vs previous quarter and 406.06% vs year-ago quarter.
Operating expenses increased 37.45% YoY and 12.84% QoQ to Rs 712 crore in Q2 FY27 from Rs 518 crore in Q2 FY26 and Rs 631 crore in Q1 FY27. Credit cost rose 30.56% YoY and 0.80% QoQ to Rs 376 crore from Rs 288 crore in Q2 FY26 and Rs 373 crore in Q1 FY27. Tax expenses stood at Rs 126 crore, compared with Rs 25 crore in Q2 FY26 and Rs 104 crore in Q1 FY27.
Operating profit increased 126.61% YoY and 11.72% QoQ to Rs 877 crore in Q2 FY27 from Rs 387 crore in Q2 FY26 and Rs 785 crore in Q1 FY27.
Assets under management (AUM) stood at Rs 74,008 crore as of 30 September 2026. Return on assets improved to 2.18% in Q2 FY27 from 1.98% in Q1 FY27 and 1.81% in Q4 FY26. Credit cost as a percentage of average AUM declined to 2.19% from 2.40% in Q1 FY27.
Asset quality improved, with gross non-performing assets (GNPA) declining to 1.20% in Q2 FY27 from 1.37% in Q1 FY27. Net non-performing assets (NNPA) fell to 0.61% from 0.70%. Stage 1 assets accounted for 97.9% of on-book assets, compared with 97.6% in the previous quarter.
The secured-to-unsecured on-book asset mix stood at 52:48. The capital adequacy ratio was 18.68%, including Tier 1 capital of 17.15%, as of 30 September 2026. The company reported a liquidity buffer of Rs 6,526 crore, while its cost of borrowing stood at 7.76%, up 4 basis points QoQ.
Poonawalla Fincorp added 42 AI projects during the quarter, taking its total to 143, of which 84 had been implemented. Managing director and CEO Arvind Kapil said improvements in AUM growth, net interest margin, fee income and asset quality had supported profitability and return on assets.
Poonawalla Fincorp is a Cyrus Poonawalla Group-promoted, non-deposit-taking, systemically important non-banking financial company registered with the Reserve Bank of India. Its lending portfolio includes loans against property, gold loans, personal loans, education loans, consumer durable loans, business loans, commercial vehicle finance and pre-owned car finance.
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