Poonawalla Fincorp Q2 profit falls to ₹74 crore despite strong asset growth 

Poonawalla Fincorp’s AUM mix included MSME loans at 36%, loan against property at 26%, personal and consumer finance at 26%, and pre-owned car finance at 11%. 

Poonawalla Fincorp reported a profit after tax of ₹74 crore for the quarter ended September 30, 2025, as the non-banking finance company continued its rapid expansion. The Mumbai-based lender announced its unaudited results on Friday.

The company’s assets under management surged 68 per cent year-on-year to ₹47,701 crore, reflecting aggressive growth in its lending portfolio. Net interest income rose 40.3 per cent to ₹905 crore during the quarter. The secured-to-unsecured loan ratio stood at 56:44.

Pre-provision operating profit increased 38 per cent year-on-year to ₹387 crore, though the company noted ongoing investments in new business verticals affected margins. Net interest margin improved marginally to 8.40 per cent from 8.32 per cent in the previous quarter.

Asset quality showed improvement with gross non-performing assets declining to 1.59 per cent from 1.84 per cent quarter-on-quarter. Net NPA stood at 0.81 per cent. Stage 1 assets comprised 97.1 per cent of the on-book portfolio.

The company’s AUM mix included MSME loans at 36 per cent, loan against property at 26 per cent, personal and consumer finance at 26 per cent, and pre-owned car finance at 11 per cent. Cost of borrowings decreased by 35 basis points to 7.69 per cent during the quarter.

Managing Director Arvind Kapil attributed the growth to successful diversification strategy and improved liability management through cost-effective non-convertible debenture issuances. The company maintained a capital adequacy ratio of 20.85 per cent.

The shares of Poonawalla Fincorp Limited ended on the NSE today at ₹526 down by ₹13.40 or 2.48 per cent.

Published on October 17, 2025