Poonawalla Fincorp (POONAWALLA) Q3 25/26 earnings summary

Executive summary

• AUM grew 77.6%-78% year-over-year to INR 55,017 crore as of December 31, 2025, with new products contributing up to 11% of AUM and strong momentum across all segments.

• Profit after tax surged 102%-102.5% quarter-on-quarter to INR 150 crore, driven by robust operational performance and scaling of new business lines.

• Significant investments in branches, technology, and management enabled successful incubation and scaling of multiple new products.

• Board approved significant capital raising plans, including equity and debt issuances, and appointed a new Whole-time Director.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, with no material misstatements reported.

Financial highlights

• Net interest income, including fees, rose 60.6% year-over-year to INR 1,080 crore; pre-provision operating profit increased 41.5% year-over-year to INR 528 crore.

• Disbursements grew 84% year-over-year in Q3 FY26, with new products contributing 20% to total disbursement.

• Cost of borrowing reduced to 7.65% in Q3 FY26.

• OpEx to AUM ratio improved by 40 bps quarter-on-quarter to 4.4%.

• Consolidated revenue from operations for Q3 FY26 was INR 1,818.42 crore, up from INR 1,057.03 crore in Q3 FY25.

Outlook and guidance

• Management maintains AUM growth guidance of 35%-40% annually, with a focus on retail and new products.

• Board approved raising up to INR 5,500 crore via equity and up to INR 20,000 crore via non-convertible debt securities for FY 2026-27.

• Opex as a percent of AUM expected to stabilize at prudent levels by Q4FY26.

• On track to launch 400 branches and expand dealer points to 12,000+ by March 2026.

• Credit costs expected to decline as portfolio mix shifts toward lower-risk products.