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Poonawalla Fincorp Limited, a giant with a strong identity in the field of non-banking financial companies (NBFC), has released its unaudited financial results for the September quarter (Q2 FY27) of the current financial year. The company’s performance has been excellent in these figures revealed after the market closed. Investors’ enthusiasm has increased due to strong credit growth, better asset quality and strong profit growth. Let us know the complete and detailed report of these quarterly results of the company.
Tremendous jump in net profits and assets under management (AUM)
According to the financial data, there has been tremendous improvement in the company’s performance in the quarter under review. Poonawala Fincorp’s net profit has increased from Rs 308 crore in the last June quarter to Rs 375 crore in the September quarter. On a quarter-on-quarter basis, the company’s profits have registered an impressive increase of 21.8%. Moreover, the total Assets Under Management (AUM) of the company has increased to Rs 74,008 crore, which clearly reflects its business expansion.
Great improvement in Net Interest Income (NII) and Margins
According to information provided by the company, Net Interest Income (NII), which includes fees and other business income, grew by 12.3% to Rs 1,589 crore during the quarter. At the same time, the company’s Net Interest Margin (NIM) increased to 9.26%, which was 9.10% in the previous quarter. Along with this, there has also been an improvement in Return on Assets (RoA) and it increased to 2.18% in the September quarter, whereas it was 1.98% in the June quarter.
Great relief on credit cost and asset quality front
There has also been significant improvement in the asset quality and NPA figures of the company. The company’s credit cost as a percentage of average AUM has declined to 2.19%, compared to 2.40% in the previous quarter. Additionally, gross non-performing assets (GNPA) improved to 1.20% in the September quarter from 1.37% in the June quarter. At the same time, Net Non-Performing Assets (NNPA) has also decreased from 0.70% to 0.61%, which shows the strong risk management of the company.
Strong operating profit and capital adequacy figures
The company’s pre-provision operating profit (PPoP) for the September quarter was recorded at Rs 877 crore, an increase of 11.8% quarter-on-quarter. The ratio of secured and unsecured loans in the company’s on-book loan book has been 52:48. Along with this, the Capital Adequacy Ratio (CAR) of the company till September 30, 2026 stood at 18.68%, which includes Tier-1 capital ratio of 17.15%. This figure is well above the regulatory requirement (15%), and the company also has a strong liquidity buffer of Rs 6,526 crore.
Special focus on technology and Artificial Intelligence (AI)
Moving beyond traditional financial activities, the company is rapidly working on digital and technological developments. Poonawala Fincorp said that 42 new Artificial Intelligence (AI) projects have been added during the September quarter, taking the total number of AI projects to 143. Of these, 84 projects have been successfully implemented. It is a systemically important NBFC focusing on consumer and MSME finance.