Poonawalla Fincorp Q2 Profit Jumps Fivefold on Strong Loan Growth

Poonawalla Fincorp reported a remarkable surge in its net profit for the quarter ending September 30, 2026, with earnings climbing more than five times compared to the same period last year. The non-banking financial company’s net profit after tax reached Rs 375 crore, marking a 405.2 percent increase from Rs 74 crore recorded in the second quarter of 2025. This growth also reflected a 21.8 percent rise from Rs 308 crore in the previous quarter.

The company attributed this sharp profit increase primarily to rapid expansion in its loan book, which significantly boosted net interest income and fee-based revenues. Net interest income, including fees and other related income, rose 75.6 percent year-on-year to Rs 1,589 crore. Cross-sell income improved to Rs 118 crore from Rs 68 crore, and servicing income more than doubled to Rs 91 crore, up from Rs 37 crore a year earlier.

Assets under management also saw a strong increase, growing 55 percent year-over-year to Rs 74,008 crore. This expansion was supported by a diversified portfolio of new loan products introduced by the firm. These included prime personal loans, gold loans, education loans, consumer durable loans, commercial vehicle loans, and shopkeeper loans. Collectively, these new offerings contributed 28 percent of the total disbursements in the quarter, amounting to over Rs 4,400 crore.

Arvind Kapil, Managing Director and Chief Executive Officer of Poonawalla Fincorp, shared insights during an analyst call, highlighting that the company’s growth trajectory was accompanied by an improvement in lending margins. He noted that yields on new loan disbursements increased by approximately 20 basis points during the quarter, following a 50 basis point rise in the previous quarter. Additionally, higher yields from earlier loans continued to positively impact the overall portfolio returns.

Kapil also discussed the expansion of the company’s commercial vehicle business, which now partners with over 1,250 channel partners. The education loan segment has seen enhanced origination capabilities through the adoption of an instant-sanction platform. Meanwhile, the consumer durable loan network has scaled significantly, reaching 20,000 dealers spread across 360 locations.

Asset quality indicators showed notable improvement. The gross non-performing asset (NPA) ratio decreased to 1.20 percent from 1.59 percent a year prior, reflecting more effective risk management. The lender’s capital adequacy ratio stood at a healthy 18.68 percent, supporting its ability to absorb potential losses and sustain growth. Total borrowings were reported at Rs 58,865 crore, with the cost of borrowing slightly rising to 7.76 percent from 7.69 percent in the previous year.

Poonawalla Fincorp operates in a competitive non-banking financial sector in India, which has been witnessing steady growth fueled by rising consumer demand for credit products beyond traditional banking channels. The company’s focus on diversifying its loan portfolio and enhancing service delivery through digital platforms aligns with broader trends in the financial services market, where lenders seek to capture new customer segments and improve operational efficiency.

This quarterly performance highlights Poonawalla Fincorp’s ongoing efforts to expand its reach and improve profitability while maintaining prudent asset quality standards. Investors and market watchers will be closely following the company’s progress as it continues to develop its product mix and distribution networks in the coming quarters.