Poonawalla Fincorp (POONAWALLA) Q1 25/26 earnings summary

Executive summary

• Achieved 53% year-on-year AUM growth to INR 41,273 crores as of June 30, 2025, with strong momentum across all products and a secured on-book mix at 57%.

• Net interest income for Q1 FY26 was INR 768 crores, up 13.6% year-on-year, and profit after tax stood at INR 63 crores.

• Consolidated revenue from operations for Q1 FY26 was INR 1,313.97 crores, up from INR 977.59 crores in Q1 FY25.

• Board approved raising INR 1,500 crores via preferential equity issue to the promoter, strengthening the capital base.

• Opex to AUM remained stable at 4.8% despite investments in new businesses and digital transformation.

Financial highlights

• AUM grew 53% YoY and 16% QoQ; NII up 13.6% YoY to INR 768 crores; PPOP at INR 325 crores; PAT at INR 63 crores for Q1 FY26.

• Gross NPA stable at 1.84%, net NPA at 0.85%, and provisioning coverage ratio at 53.93%.

• Cost of borrowing reduced to 8.04% for the quarter.

• Liquidity stood at INR 4,465 crores as of June 30, 2025.

• Credit rating maintained at AAA/Stable (long-term) and A1+ (short-term).

Outlook and guidance

• AUM growth for FY26 expected to exceed prior guidance of 35%-40%, with aspirations for 5-6x growth over five years.

• NIM expected to recover to around 9% within the next 12 months as portfolio mix stabilizes.

• Credit cost guidance maintained at 1.5%-2% steady-state, with further improvement expected over two to three years.

• Opex as % of AUM expected to stabilize by Q4FY26 as scale and efficiencies improve.

• Board reaffirmed plan to sell shareholding in Jaguar Advisory Services Private Limited, subject to regulatory approvals.