Poonawalla Fincorp’s net profit soars five times to ₹375 cr in Q2FY27

File pic: Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp
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Poonawalla Fincorp Ltd (PFL) recorded a nearly five-fold increase in net profit for the second quarter of FY27, climbing to ₹375 crore from ₹74 crore in the corresponding period last year. This growth was propelled by solid expansion in both net interest income and the loan book.

Net interest income for the non-deposit taking non-banking financial company, which is focused on consumer and MSME lending, grew 75.6 per cent year-on-year to ₹1,589 crore, compared to ₹905 crore in the year-ago quarter.

Assets under management increased 55.1 per cent to ₹74,008 crore as at September-end 2026, from ₹47,701 crore as at September-end 2025. The secured to unsecured mix on the balance sheet was 52:48 at September-end 2026, compared to 56:44 a year earlier.

The Net Interest Margin (NIM), including fees and other income, improved to 9.26 per cent in Q2FY27, up from 8.40 per cent in Q2FY26.

Credit quality also showed marked improvement, with gross non-performing assets (NPAs) falling to 1.20 per cent of gross advances as at September-end 2026, down from 1.59 per cent in September 2025. Net NPAs followed suit, easing to 0.61 per cent of net advances against 0.81 per cent previously.

The cost of borrowing for the quarter moved up to 7.76 per cent, compared to 7.69 per cent in the year-ago period.

Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp, said, “We have delivered disciplined AUM expansion while enriching total realisations via NIM and fee income optimisation, demonstrating strong pricing power across core and newly incubated verticals. Concurrently, continuous asset quality refinement has driven credit costs lower from an already formidable baseline, translating directly into a structural lift in our Return on Assets (RoA).”

Published on October 9, 2026