Poonawalla Fincorp reported a 21.8% quarter-on-quarter increase in profit after tax (PAT) to Rs 375 crore in Q2 FY27, supported by higher interest income, improved margins and better asset quality.
The non-banking financial company (NBFC) reported a profit of Rs 308 crore in Q1 FY27. Its assets under management (AUM) reached Rs 74,008 crore as of September 30, 2026.
The company announced its unaudited financial results on October 9, 2026.
- Net Interest Income Grows 12.3%
Poonawalla Fincorp's net interest income, including fees and other income, increased 12.3% quarter-on-quarter to Rs 1,589 crore in Q2 FY27.
The company's Return on Assets (RoA) improved to 2.18%, compared with 1.98% in the previous quarter and 1.81% in Q4 FY26.
Its net interest margin (NIM), including fees and other income, also increased to 9.26%, up from 9.10% in Q1 FY27. This represents an improvement of 16 basis points.
- Asset Quality Shows Improvement
The company reported improvements in its asset quality during the quarter.
Credit costs as a percentage of average AUM fell to 2.19% from 2.40% in the previous quarter, a reduction of 21 basis points.
Gross non-performing assets (GNPA) declined to 1.20% from 1.37%, while net non-performing assets (NNPA) dropped to 0.61% from 0.70%.
These figures indicate a reduction in stressed loans compared with the previous quarter.
- Capital Position and Liquidity Remain Strong
As of September 30, 2026, Poonawalla Fincorp reported a capital adequacy ratio of 18.68%, with Tier-1 capital at 17.15%. The overall capital adequacy ratio remained above the regulatory requirement of 15%. The company also maintained a liquidity buffer of Rs 6,526 crore, providing funds to support its lending operations and financial obligations.
Key Numbers
- Rs 375 crore - Q2 FY27 net profit, up 21.8% quarter-on-quarter
- Rs 74,008 crore - Assets under management
- Rs 1,589 crore - Net interest income, including fees and other income
What the Results Mean
Poonawalla Fincorp's Q2 FY27 performance reflects growth in profitability alongside improved margins and asset quality. The rise in AUM also highlights the scale of its lending operations.
The company's ability to maintain capital above regulatory requirements and a sizeable liquidity buffer will remain important as it continues to grow its loan book.
