Poonawalla Fincorp (POONAWALLA) Q2 25/26 earnings summary

Executive summary

• Domestic economic activity remains resilient, supporting robust growth momentum driven by GST reforms, lower inflation, and interest rate cuts.

• Achieved 68% year-over-year AUM growth to ₹47,701 crore, with 15.6% sequential growth and strong momentum across all products; new products contributed 8% to AUM.

• The company is in an intensive investment phase focused on long-term, sustainable profitability with a risk-first and governance-first approach.

• Significant expansion in product offerings and distribution channels, with a strong emphasis on digital transformation and AI integration.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 were approved and published, with limited review by joint statutory auditors expressing an unmodified conclusion.

Financial highlights

• Assets under management (AUM) grew 68% year-on-year and 15.6% quarter-on-quarter to INR 47,701 crore as of September 30, 2025.

• Net interest income for Q2 FY26 was INR 905 crore, up 17.8% quarter-on-quarter and 40.3% year-on-year.

• Profit after tax stood at INR 74 crore for the quarter, up 18.5% quarter-on-quarter.

• Cost of borrowing dropped to 7.69% from 8.04% in the previous quarter.

• Gross NPA improved to 1.59% from 1.84% quarter-on-quarter; net NPA at 0.86%.

Outlook and guidance

• Continued focus on expanding self-reliant sourcing and digital channels, aiming for year-on-year growth in direct customer acquisition.

• Aspires for 5-6x AUM growth over the next five years, driven by digital and phygital expansion, new product launches, and operational efficiencies.

• Plans to achieve best-in-class credit costs and healthy ROAs through product mix and operational efficiencies.

• Targeting 400 gold loan branches by March 2026, with significant expansion in tier 2 and 3 markets.

• The company reaffirmed its plan to sell its stake in Jaguar Advisory Services Private Limited, classified as assets held for sale, pending regulatory approvals.