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Informist, Wednesday, Jul. 15, 2026

 

By Radhika Tiwari

 

MUMBAI – Poonawalla Fincorp Ltd. is likely to report a fourfold jump in its consolidated net profit for the June quarter, driven by strong operating efficiency and a surge in assets under management, according to brokerages tracking the company.

 

The non-banking finance company is expected to report a consolidated net profit of INR 3.03 billion for the June quarter, up almost fourfold on year and 19% on quarter, according to the average of estimates from five brokerages. The highest estimate for the company's net profit is INR 3.3 billion from Motilal Oswal Financial Services Ltd. and the lowest estimate is INR 2.75 billion from JM Financial Institutional Securities Pvt. Ltd.

 

Poonawalla Fincorp is likely to post a net interest income of INR 11.54 billion for the June quarter, up 80.5% on year and 10% on quarter, according to the estimates. The highest estimate for the company's net interest income is INR 11.78 billion from JM Financial and the lowest estimate is INR 11.04 billion from Nirmal Bang Equities Pvt. Ltd.

 

The company is seen as an outperformer among non-banking finance companies, most of which are expected to report higher net interest income for the June quarter. This is in line with the recent moderation in bond yields and a fall in the marginal cost of funds-based lending rates, Anand Rathi Share and Stock Brokers Ltd. said.

 

Poonawalla Fincorp is likely to report the highest sequential growth of 11% in its assets under management among diversified non-banking finance companies, which are expected to post growth in the range of 3% to 11% on quarter, ICICI Securities said.

 

Poonawalla Fincorp's total assets under management are expected to reach INR 656 billion, up 59% on year and 8.7% on quarter, according to Motilal Oswal. This growth will support the multi-fold increase in the non-banking finance company's net profit.

 

Diversified non-banking finance companies witnessed strong growth in their assets under management because of consumer durable and passenger vehicle financing despite an increase in funding costs, brokerages said. Auto financiers showed healthier spreads while commercial vehicle demand weakened amid fuel price hikes and geopolitical uncertainty, Nirmal Bang said.

 

Brokerages expect the company's credit cost for the June quarter to decline 20-32 basis points on quarter. On an on-year basis, Poonawalla Fincorp's credit cost is expected to fall 73 bps to 2%, the brokerage said.

 

"Business activity has largely normalised in June and temporary slowdown in mid-May'26 did not materially affect momentum," ICICI Securities said. "While El-Nino poses risk to asset quality trends in H2FY27, we still believe NBFCs (non-banking finance companies) are well placed to deliver strong earnings growth in FY27."

 

Poonawalla Fincorp is a part of the Cyrus Poonawalla group, which also owns the vaccine maker Serum Institute of India. Poonawalla Fincorp focuses on financing consumer loans and loans to micro, small, and medium enterprises. The company will detail its June quarter earnings on Friday.

 

On Wednesday, shares of Poonawalla Fincorp ended slightly higher at INR 475.55 on the National Stock Exchange. The stock has risen over 8% since the company announced its March quarter earnings on May 5.

 

Of the eight research reports on the company available with Informist, four have a "buy" recommendation on the stock while the other four have a "sell" recommendation. The average target price for the "buy" recommendations is INR 555, which is over 15% higher than the current market price. The average target price for the "sell" recommendations is INR 381.

 

Following are the Apr-Jun earnings estimates for Poonawalla Fincorp from five brokerages in descending order of net profit, in INR billion:

 

Brokerage	NII	Net profit
Motilal Oswal Financial Services Ltd.	11.55	3.30
ICICI Securities Ltd.	11.67	3.14
Anand Rathi Share and Stock Brokers Ltd.	11.62	3.10
Nirmal Bang Equities Pvt. Ltd.	11.04	2.84
JM Financial Institutional Securities Pvt. Ltd.	11.78	2.75
Average	11.53	3.03

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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