Top Fastest-Growing NBFCs in India Based on Q1 FY27 Results

Poonawalla Fincorp, L&T Finance, Mahindra Finance and HDB Financial Services are identified as some of the quickest‑growing NBFCs in India according to their Q1 FY27 results. These firms showed robust growth in loan books and earnings, underscoring their expanding scale and momentum within India’s financial services landscape. The piece looks at major NBFCs whose assets exceed Rs. 50,000 crore and which disclosed their numbers for the quarter ending June 30 2026.

Leading Fastest‑Growing NBFCs in India for Q1 FY27

• Poonawalla Fincorp 
• L&T Finance 
• Mahindra Finance 
• HDB Financial Services 

Prominent Indian NBFCs in Q1 FY27

Book size denotes AUM, except for L&T Finance where it indicates the consolidated loan book. PAT numbers are on a consolidated basis, and asset quality reflects GNPA/Gross Stage 3 as reported for Q1 FY27. All figures are provisional and may be revised.

1. Poonawalla Fincorp

Poonawalla Fincorp ranks among the quickest‑growing NBFCs in India and within its peer group. Its assets under management climbed 62.5% year‑on‑year to ₹67,054 crore, almost four times the average growth of the broader NBFC sector. Profit after tax surged to ₹308 crore from ₹62.6 crore, and gross NPA fell to 1.37% from 1.84% even as the business expanded swiftly. About 26% of disbursements came from newer products, and the ₹2,500 crore qualified institutional placement bolstered its capital base.

Why it stands out: It achieved the strongest growth while maintaining the lowest gross NPA of the four companies, pairing rapid expansion with better asset quality.

2. HDB Financial Services

HDB Financial Services, rated among India’s top NBFCs, posted an AUM of ₹1,22,048 crore, up 11.3% year‑on‑year, with a gross loan book of ₹1,21,846 crore. Profit after tax rose 38.3% to ₹785 crore, driven by a 19.9% increase in net interest income to ₹2,509 crore. Gross Stage 3 eased to 2.34%, and return on equity reached 15%—the highest in the group.

Why it stands out: Even with modest AUM growth, HDB Financial Services posted the group’s best return on equity and runs the largest branch network, reaching 23.9 million customers through 1,710 outlets.

3. L&T Finance

L&T Finance holds a consolidated loan book of ₹1,29,634 crore, expanding 27% year‑on‑year, while its retail portfolio grew to ₹1,27,535 crore. Consolidated profit after tax climbed 29% to a record ₹902 crore, buoyed by a 36% rise in retail disbursements to ₹23,852 crore. Gross Stage 3 fell to 2.86% from 3.31%, signalling improved asset quality.

Why it stands out: It blends extensive scale with steady growth, keeping a loan book above ₹1.29 lakh crore while maintaining a robust expansion rate.

4. Mahindra Finance

Mahindra Finance, one of India’s leading NBFCs, posted the biggest loan book at ₹1,37,449 crore, with business assets up 12.7% year‑on‑year. Consolidated profit after tax jumped 75.4% to ₹927 crore, backed by record Q1 disbursements of ₹15,564 crore. Expansion was fueled by tractor finance, passenger‑vehicle loans, SME lending and home loans. Net interest margin rose to 7.3% and credit costs fell to 1.5%.

Why it stands out: Although its book growth was modest, it generated the highest profit of the four NBFCs, underscoring a solid earnings rebound and enhanced profitability.

Other Prominent Lenders Showing Rapid Growth

Two lenders posted higher percentage growth during the quarter, but their starting bases are much smaller, so they are excluded from the primary comparison.

• Jio Financial Services reported lending AUM of ₹30,667 crore, up 2.6 times year on year, with consolidated profit of ₹830 crore. It is building a loan book almost from scratch, so the multiple is not directly comparable with an established lender. 
• Aye Finance recorded an AUM of ₹7,329 crore, up 28% year on year, and net profit rose 143.9% to ₹74.5 crore. It lends to micro and small enterprises and has guided for AUM growth of 25‑30% in FY27. 

Key Growth Highlights from Q1 FY27

• Fastest AUM growth: Poonawalla Fincorp (62.5%) 
• Largest loan book: Mahindra Finance (₹1,37,449 crore) 
• Highest consolidated profit: Mahindra Finance (₹927 crore) 
• Quickest profit growth: Poonawalla Fincorp (391.5%) 
• Lowest gross NPA: Poonawalla Fincorp (1.37%) 
• Best return on equity: HDB Financial Services (15%) 
• Top return on assets: HDB Financial Services (2.5%) 

Conclusion

In Q1 FY27, growth varied widely across the lenders. Poonawalla Fincorp expanded its loan book the fastest while also strengthening asset quality. L&T Finance paired its sizable scale with a 27% growth rate, Mahindra Finance recorded the highest consolidated profit and the sharpest earnings rebound, and HDB Financial Services posted the best return on equity despite a slower book increase. Evaluating growth together with asset quality, profitability, and capital strength gives a fuller picture of each NBFC’s performance.

Frequently Asked Questions

Which NBFC grew the fastest in Q1 FY27?

Among NBFCs with assets over ₹50,000 crore that released results by July 23 2026, Poonawalla Fincorp recorded the fastest growth. Its AUM climbed 62.5% year‑on‑year to ₹67,054 crore, compared with 27% for L&T Finance, 12.7% for Mahindra Finance and 11.3% for HDB Financial Services.

Which NBFC reported the highest profit in Q1 FY27?

On a consolidated basis, Mahindra Finance posted the top quarterly profit of the group at ₹927 crore, up 75.4% year‑on‑year. L&T Finance came second with ₹902 crore, followed by HDB Financial Services at ₹785 crore.

Is Poonawalla Fincorp one of the fastest growing NBFCs in India?

Yes, when gauged by AUM growth. Poonawalla Fincorp’s loan book rose 62.5% year‑on‑year in Q1 FY27 to ₹67,054 crore, far outpacing the average NBFC sector expansion, and its gross NPA fell to 1.37% during that period.