Poonawalla Fincorp (POONAWALLA) Q4 25/26 earnings summary

Executive summary

• Achieved a significant inflection point in Q4 FY26, with AUM at ₹60,348 crore, up 69.4% YoY, driven by scaling six new business lines and rigorous cost discipline.

• PAT surged 69.6% QoQ to ₹255 crore, supported by strong performance across retail and new product segments.

• Strategic investments in technology, digital, and AI initiatives structurally enhanced profitability and operating leverage.

• Expanded gold loan branches to 400, enhancing distribution reach and operational scale.

• No dividend declared for FY26 to conserve capital for future growth.

Financial highlights

• Net interest income (NII) for Q4 FY26 was ₹1,276 crore, up 78.5% YoY and 18.2% QoQ; full-year NII stood at ₹4,029 crore, up 49% YoY.

• Profit after tax (PAT) for Q4 was ₹255 crore, up 69.6% QoQ; full-year PAT was ₹542 crore.

• Consolidated revenue from operations for FY26 was ₹6,790.18 crore, up from ₹4,222.84 crore in FY25.

• Pre-provision operating profit (PPOP) for Q4 was ₹695 crore, up 31.6% QoQ and 109% YoY; full-year PPOP was ₹1,934 crore, up 36% YoY.

• Cost to income ratio improved to 45.6% in Q4 FY26 from 51.1% in Q3 FY26.

Outlook and guidance

• AUM growth guidance for FY27 is 35%-40%, with commensurate disbursements.

• Aspires to achieve 5-6x AUM over the next five years, focusing on scaling consumer and commercial franchises.

• Internal benchmark set to further lower OpEx to AUM ratio by next March, despite ongoing investments.

• Confident in maintaining robust credit costs and improving ROE over the next few quarters.

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