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Informist, Friday, Oct. 17, 2025

 

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--Poonawalla Fincorp Jul-Sept consol net profit INR 742 mln 
--Analysts saw Poonawalla Fincorp Jul-Sept consol net profit INR 875.17 mln 
--Poonawalla Fincorp Q2 consol PAT INR 742 mln vs INR 4.71 bln loss yr ago 
--Poonawalla Fincorp Q2 consol revenue INR 15.42 bln vs INR 9.89 bln yr ago 
--Poonawalla Fincorp H1 consol PAT INR 1.37 bln vs INR 1.79 bln loss yr ago 
--Poonawalla Fincorp H1 consol revenue INR 28.56 bln vs INR 19.66 bln yr ago

 

By Akshat Saksena

 

MUMBAI – Though Poonawalla Fincorp Ltd. reported a growth in its Jul-Sept consolidated net profit sequentially, it failed to meet analysts' estimates. The company had reported a loss for the same quarter a year ago. Sequentially, the company reported double-digit growth in its net profit. The rise in the company's interest income, along with an increase in its income from fees and commission on year and on quarter, have aided its top line and bottom line. 

 

The non-banking finance company reported a consolidated net profit of INR 742 million for the quarter ended September against a loss of INR 4.71 billion a year ago due to a one-time provisioning in its small-ticket personal loans book. The company's net profit rose 18.5% on quarter. The company's net profit, however, fell short of analysts' estimate of INR 875.17 million. 

 

The company's consolidated revnue grew nearly 56% on year to INR 15.42 billion. The growth in the company's top line was driven by a near-54% growth in the company's interest income which rose to INR 14.02 billion in the September quarter and a near-125% rise in the company's fees and commission income which rose to INR 1.02 billion. 

 

The company's total expenses fell more than 11% for the reporting quarter to INR 14.44 billion. This was led by a decrease of 72% in the impairment on financial instruments which was at INR 2.58 billion for the September quarter, down sharply from INR 9.09 billion in the year-ago quarter. The company's finance costs, however, grew more than 81% to INR 6.38 billion while its other expenses also rose 80% to INR 2.40 billion. 

 

For the half year ended September, the company's consolidated net profit was INR 1.37 billion whereas the company had reported a loss of INR 1.79 billion for the same period last year. The company's consolidated revenue for the half year ended September grew over 45% on year to INR 28.56 billion.

 

The company's consolidated net interest income stood at INR 9.05 billion, up over 40% on year for the reporting quarter. This is over analysts' estimates of INR 7.46 billion. The company's net interest margin rose to 8.40% from 8.32% in the previous quarter.

 

The company's assets under management stood at INR 477.01 billion as on Sept. 30, up 68% on year and around 16% on quarter. Micro, small, and medium enterprises constituted 36% of the assets under management, loans against property constituted 26%, personal and consumer finance constituted another 26%, while pre-owned car finance constituted 11%. The secured to unsecured on-book mix was 56:44 for the September quarter. 

 

The company's pre-provisioning operating profit was INR 3.87 billion, up 38% on year. The company's cost of borrowing was sequentially down by 35 basis points at 7.69%. The company's gross non-performing assets were at 1.59% for the reporting quarter as opposed to 1.84% in the previous quarter while its net non-performing assets stood at 0.81% for the reporting quarter against 0.85% in the previous quarter. Stage 1 assets constituted 97.1% of the company's on-book assets in the reporting quarter against 96.5% in the previous quarter. The company's provisioning coverage ratio was at 49.65% for the reporting quarter. 

 

The company's capital adequacy ratio was 20.85%. The company has set aside a liquidity buffer of INR 62.61 billion as of Sept. 30. During the September quarter, the company launched 10 new artifical intelligence projects, bringing the total AI projects of the company to 45. 

 

Friday, shares of Poonawalla Fincorp ended 2.4% lower at INR 526.40 on the National Stock Exchange. The company announced it's results after market hours. End

 

Edited by Deepshikha Bhardwaj

 

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