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Informist, Friday, Jan. 16, 2026

 

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--Poonawalla Fincorp Oct-Dec consol net profit INR 1.50 bln
--Analysts saw Poonawalla Fincorp Oct-Dec consol net profit INR 1.47 bln
--Poonawalla Fincorp Oct-Dec consol revenue INR 18.18 bln vs INR 10.57 bln
--Poonawalla Fincorp board OKs raising up to INR 200 bln in FY27 via debt
--Poonawalla Fincorp board OKs raising up to INR 55 bln via QIP, others
--Poonawalla Fin Q3 FY25 consol PAT INR 187.3 mln, not INR 209.1 mln
--Poonawalla Fin Q3 consol PAT INR 1.50 bln vs INR 187.3 mln
 

 

By Shweta

MUMBAI - Poonawalla Fincorp Ltd. reported an eight-fold jump on year in its consolidated net profit for the December quarter as revenues grew faster than expenses. The non-banking finance company's consolidated net profit for the quarter was INR 1.5 billion, up very sharply from INR 187.3 million year ago but marginally above the INR 1.47 billion consensus estimate from five brokerages. In the September quarter, the company's consolidated bottom line was INR 742 million.

 

The company's total income for the December quarter rose 72% on year to INR 18.18 billion from INR 10.57 billion a year ago. Interest income for the quarter grew 66% on year and over 18% on quarter to INR 16.60 billion.

 

The rise in the company's December quarter net profit is also attributable to lower credit cost and improving asset quality. The credit cost for the quarter was 2.6%, down from 4.8% a year ago and 2.7% a quarter ago. The company's gross non-performing assets ratio declined 34 basis points on year and 8 bps on quarter to 1.51% in the December quarter. The net non-performing assets ratio fell marginally by 1 bps on year and on quarter to 0.80% in Oct-Dec. There were "no accelerated write-off during the quarter," the company's investor presentation said.

 

Poonawalla Fincorp's cost-to-income ratio improved sequentially but deteriorated on year. It was 51.1% in the December quarter against 44.5% a year ago and 57.3% a quarter ago. Cost-to-income ratio measures a company's operational efficiency, with a lower ratio indicating a higher efficiency. The operating expenses ratio declined to 4.4% in the December quarter from 4.8% in Jul-Sept. The ratio was 4.1% a year ago.

 

The net interest income, including fees and other income, rose 61% on year and 19% on quarter to INR 10.80 billion in the December quarter. It was INR 6.72 billion in the December quarter of financial year 2024-25 (Apr-Mar) and INR 9.05 billion in the September quarter this year.

 

The company's fees and commission income increased 113% on year to INR 1.16 billion in the reporting quarter. Total revenue from operations rose 72% on year to INR 18.18 billion for the reporting quarter. On the other hand, other income declined 57% on year and 87% on quarter to INR 600,000.

 

The non-banking finance company's loans surged nearly 83% on year and over 16% on quarter to INR 511 billion during the reporting quarter. The total expenses rose over 56% on year to INR 16.18 billion.

 

The assets under management grew 78% on year and 15% on quarter to INR 550.17 billion as on Dec. 31. The growth in the company's net interest income has been supported by a rise in assets under management and higher loan disbursements. "We seek to continue growing our AUM at approximately 35-40?GR (compound annual growth rate) over the next couple of years," the company said in its investor presentation. The capital adequacy ratio was 18.17%, well above the regulatory requirement of 15%, the company said in its press release.

 

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.

 

The company's pre-provision operating profit increased nearly 42% on year to INR 5.28 billion in the December quarter. The cost of borrowing declined to 7.65%. In the year-ago quarter, the cost of borrowing was 8.06%. The company is seeing a continuous reduction in cost of borrowing since the March quarter of FY25, when it was at 8.07%, according to the presentation.

 

"Return on assets improved to 1.2%, while moderation in credit costs underscores improving asset quality and risk outcomes," Poonawalla Fincorp Managing Director and Chief Executive Officer Arvind Kapil was quoted as saying in the release.

 

For the nine months ended December, the company reported a 53% rise in its total income to INR 46.75 billion from INR 30.50 billion in Apr-Dec of FY25. Its net profit for Apr-Dec of the current financial year was 2.87 billion against a loss of INR 1.61 billion in the same period last year.

 

The board of Poonawalla Fincorp has approved raising up to INR 200 billion in FY27 through debt instruments and up to INR 55 billion through issuance of equity by any means, including qualified institutions placement. On Friday, shares of the company's ended at INR 463.95 on the National Stock Exchanges, down 1.6% from Wednesday.  End

 

Edited by Ashish Shirke

 

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