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Informist, Saturday, May 2, 2026

By Durgesh Nandan

MUMBAI – Poonawalla Fincorp Ltd. is expected to report a more than threefold on-year rise in its consolidated net profit for the March quarter due to a likely sharp rise in net interest income and assets under management, according to brokerages tracking the company.

The non-banking finance company is expected to report a consolidated net profit of INR 2.14 billion, up nearly 244% on year, for the reporting quarter, according to the average of estimates from six brokerages. Sequentially, the net profit is likely to rise nearly 37%. The highest estimate for the company's net profit is INR 2.60 billion by ICICI Securities Ltd., while the lowest estimate is INR 1.60 billion by Nirmal Bang Equities Pvt. Ltd.

The company is likely to post a net interest income of INR 10.32 billion for the reporting quarter, up over 69% on year and more than 12% on quarter, according to the average of estimates. The highest estimate for Poonawalla Fincorp's net interest income is INR 10.92 billion by Motilal Oswal, while the lowest estimate is INR 9.74 billion by ICICI Securities.

Two brokerages see Poonawalla Fincorp reporting a sequential rise in its net interest margin by 12-30 basis points. However, ICICI Securities expects net interest margin to fall sharply by 49 bps from the previous quarter.

The company's assets under management are expected to rise significantly, in the range of 69-78% on year, according to estimates from four brokerages. On a sequential basis, it is likely to rise 12-15% in Jan-Mar, as per three brokerages. The company's assets under management are seen at INR 603 billion as of Mar.31, due to sharp expansion in its salaried segment, Nirmal Bang said in its report.

The company is likely to mirror the overall sector's decline in credit cost. The sequential fall in credit cost is seen in the range of 94-410 bps, as per the estimates of three brokerages. "The new salaried-segment book, while strategically sound, is yet to be fully seasoned, leaving credit cost trajectory uncertain," Nirmal Bang said in its report. 

Poonawalla Fincorp is a part of the Cyrus Poonawalla group, which also owns the vaccine maker Serum Institute of India. The non-banking finance company focusses on financing consumer loans and loans to micro, small, and medium enterprises.

Personal loans, margin, and asset quality will be key factors to monitor in the earnings report. The company will detail its March quarter earnings on Monday.

Of the eight brokerage reports on the bank available with Informist, four have a 'buy' or equivalent recommendation on the stock with an average target price of INR 574 per share. This is almost 38% higher than the market price on Thursday. The remaining four brokerages have a 'sell' recommendation on the stock.

Thursday, shares of Ponawalla Fincorp ended 1% lower at INR 417.20 on the National Stock Exchange. The company had reported a consolidated net profit of INR 1.5 billion for the December quarter on total income of INR 18.8 billion. Since reporting its December quarter earnings on Jan. 16, shares of the company have fallen nearly 12%.

Following are the March quarter earnings estimates for Poonawalla Fincorp Ltd. from six brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Tanima Banerjee

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