Poonawalla Fincorp Q3 Results: AUM Soars 78% to ₹55,017 Crore

Introduction to Q3 Performance

Poonawalla Fincorp Limited announced a robust financial performance for the third quarter and nine months ended December 31, 2025. The non-banking financial company (NBFC) demonstrated significant growth across key metrics, driven by disciplined execution and a strengthening of its core business franchise. The results highlight substantial expansion in assets under management, improved profitability, and stable asset quality, positioning the company for sustained growth.

Record Growth in Assets Under Management

The company's Assets Under Management (AUM) reached a new high of ₹55,017 crore in Q3 FY26. This represents an impressive year-on-year (YoY) growth of 77.6% and a quarter-on-quarter (QoQ) increase of 15.3%. The strong AUM growth reflects the company's successful expansion strategy and increased market penetration across its diverse product segments. Total disbursements during the quarter also grew by 84% YoY, indicating strong demand for its financial products.

Key Financial Highlights for Q3 FY26

Poonawalla Fincorp's profitability metrics showed significant improvement. The company's Net Interest Income (NII), including fees and other income, stood at ₹1,080 crore, marking a 60.6% increase YoY. The Pre-provision Operating Profit (PPoP) grew by 41.5% YoY to ₹528 crore. Most notably, the Profit After Tax (PAT) for the quarter was ₹150 crore, a substantial increase from previous periods.

Improvement in Asset Quality

The company continued to strengthen its asset quality, a critical indicator for any lending institution. The Gross Stage 3 assets, or Gross Non-Performing Assets (GNPA), declined to 1.51% from 1.59% in the previous quarter. Similarly, Net Stage 3 assets (NNPA) saw a marginal improvement, reducing to 0.80% from 0.81% in Q2 FY26. This sequential improvement underscores the effectiveness of the company's risk management framework and robust collection mechanisms. The provision coverage ratio stood at a healthy 47.75%.

Strategic Capital and Diversification

To fuel its growth ambitions, Poonawalla Fincorp has focused on strengthening its capital base. The company raised ₹1,500 crore from its promoters in the second quarter of FY26, a move that signals strong confidence in the business. This capital infusion supports the company's target AUM growth of 35-40% CAGR over the next few years while maintaining healthy leverage. The company's Capital Adequacy Ratio was reported at 18.17%, well above the regulatory requirement of 15%.

Product diversification has been another key pillar of its strategy. New products, including personal loans, gold loans, and commercial vehicle loans, contributed 20% to total disbursements in Q3 FY26. This reduces reliance on traditional products and opens new revenue streams. The largest segment remains Loan Against Property, with an AUM of ₹15,077 crore.

Technology and AI Integration

Poonawalla Fincorp is heavily investing in technology to enhance efficiency and customer experience. The company has deployed 57 Artificial Intelligence (AI) solutions across various functions, including credit, operations, and customer service. According to the company, 28% of disbursements for its prime personal loan business in Q3 were processed straight-through with zero manual intervention, highlighting its focus on scalable and efficient operations.

Management Outlook

Mr. Arvind Kapil, the Managing Director and CEO, commented that the results reflect disciplined execution and a strengthened core franchise. He emphasized the doubling of profit after tax on a quarter-on-quarter basis and the positive impact of strategic investments in technology and talent. The management expressed confidence that the well-calibrated AUM growth, coupled with a strong focus on risk management, is expected to translate into sustained profitability and value creation for shareholders.

Market Position and Conclusion

With a market capitalization of approximately ₹38,437 crore, Poonawalla Fincorp is a significant player in the NBFC space. The company's strong Q3 FY26 performance, characterized by robust AUM growth, improving asset quality, and strategic capital infusion, places it on a solid footing. Its continued focus on diversifying its product portfolio and leveraging technology is expected to drive future growth in a competitive market.