Poonawalla Fincorp Q2 Profit Climbs 407% to Rs 375 Crore, NII Up 81%

Poonawalla Fincorp has showcased remarkable financial growth in the second quarter of the fiscal year 2027 (Q2 FY27), posting a profit after tax (PAT) of Rs 375 crore, representing an extraordinary 406.8% increase compared to Rs 74 crore in the same period last year. This substantial rise highlights the company's strengthened business model and operational efficiency within the non-banking financial company (NBFC) sector.

The company’s net interest income (NII), a key indicator of profitability for NBFCs, surged by 80.6% year-on-year, reaching Rs 1,380 crore in Q2 FY27 from Rs 764 crore in Q2 FY26. This impressive growth was accompanied by a 72.3% rise in total interest income, which climbed to Rs 2,416 crore from Rs 1,402 crore year-on-year. Despite interest expenses increasing by 62.2% to Rs 1,035 crore, the net interest margin expansion contributed significantly to the bottom line.

Operating profit more than doubled, rising 126.6% to Rs 877 crore compared to Rs 387 crore in the corresponding quarter of the previous year. Operating expenses also increased by 37.5%, reaching Rs 712 crore, while credit costs saw a 30.6% rise to Rs 376 crore. These expenses reflect the company’s ongoing investments in expanding its business operations and managing credit risk.

One of the highlights of Poonawalla Fincorp’s financial health is the improvement in asset quality. The gross non-performing assets (GNPA) ratio declined by 17 basis points quarter-on-quarter and 39 basis points year-on-year, indicating effective risk management and loan recovery efforts. Importantly, the company reported no accelerated write-offs during the quarter, which suggests a stable asset base.

The firm also focused on expanding its distribution network, particularly in the gold loan segment. The gold loan branch network grew to 550 branches, reinforcing its market reach. Poonawalla Fincorp’s diverse sourcing channels include direct selling agents (DSAs), digital platforms, tele-calling, and an internal sales team, enhancing accessibility and customer acquisition.

Return on assets (RoA), a critical measure of how efficiently the company uses its assets to generate profit, showed continued improvement. This was credited to enhanced operational efficiency and better capital allocation strategies.

Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, described Q2 as a pivotal period for the company. He emphasized the structural improvements made across the company’s core areas that have created a sustainable earnings engine. Kapil noted disciplined asset under management (AUM) growth, improved net interest margins (NIM), and optimized fee income as key factors behind the performance gains. He also highlighted the role of proprietary artificial intelligence (AI) technology in driving efficiency and long-term franchise sustainability.

On the stock market, Poonawalla Fincorp shares closed at Rs 447.30 on the National Stock Exchange, marking a 2.15% increase from the previous close of Rs 437.90. The stock opened at Rs 437.90 and fluctuated between Rs 436.90 and Rs 450.90 during the trading session. Despite this rally, the stock has declined 7.60% year-to-date in 2026. The company’s market capitalization stands at Rs 39,389.31 crore at the latest trading price.

Poonawalla Fincorp’s strong quarterly results come amid a competitive and evolving NBFC landscape in India, where companies are increasingly focusing on digital channels, asset quality, and diversified product offerings to capture market share. The expansion of gold loan branches is a strategic move to tap into the demand for secured lending products. Continuous improvements in asset quality and profitability metrics position Poonawalla Fincorp favorably among its peers.

Investors and analysts will likely watch the company’s ability to maintain these growth levels and manage credit costs as the economic environment changes. The incorporation of AI and technology-driven processes may provide the company with a competitive edge in operational efficiency and risk management moving forward.