Poonawalla Fincorp Limited

Poonawalla Fincorp reported robust financial results for Q3 FY26, with Assets Under Management (AUM) growing 77.6% year-on-year and 15.3% quarter-on-quarter to reach ₹55,017 crores. Total disbursements increased by 84% YoY and 6.5% QoQ. Profit After Tax (PAT) saw a significant jump of 102% QoQ and 702% YoY, reaching ₹150 crores, indicating the benefits of AUM growth and new business investments.

The company demonstrated improved asset quality, with Gross Non-Performing Assets (GNPA) reducing by 8 basis points QoQ to 1.51% in Q3 FY26. Stage-1 assets increased to 97.4% from 97.1% in the previous quarter. Net Interest Margin (including fee and other income) expanded by 22 basis points QoQ to 8.62%, while the cost of borrowing decreased by 39 basis points over three quarters to 7.65%.

New product disbursements reached a monthly run rate of approximately ₹950 crores in December, contributing 20% to total disbursements. The company is focusing on a balanced portfolio mix, with gold loans, education loans, salaried personal loans, and loans against property expected to account for 50-60% of the portfolio over time^⏳. Gold loan monthly disbursements nearly doubled from ₹110 crores in September to ₹207 crores in December 2025, and education loan disbursements reached ₹118 crores in December.

Poonawalla Fincorp has 30 out of 57 cutting-edge AI projects live, enhancing productivity, governance, and customer/employee journeys. A next-generation conversational AI platform is being launched to autonomously resolve 80% of voice and chat interactions, expected to go live by March 2026 for Hindi and English, with plans for expansion to six regional languages and 14 chatbot languages. AI is also being leveraged in credit, collections, and underwriting processes.

The company's capital adequacy ratio remains healthy at 18.17%, with Tier 1 capital at 17.15%. The debt-to-equity ratio stood at 4.25 times, providing headroom for growth. Liquidity coverage ratio (LCR) was 156% as of December 31, 2025, well above the regulatory requirement, with surplus liquidity of ₹6,488 crores. The share of NCDs in total borrowings increased significantly from 7% in March 2025 to 30-33% in December 2025, with over ₹4,500 crores raised in Q3 FY26.

Management highlighted that operating leverage is beginning to come through, with upfront investments in distribution, technology, and risk infrastructure largely completed. Opex-to-AUM reduced by 40 basis points QoQ to 4.41%. The company expects continued operating leverage and improving cost-to-income ratios as AUM scales and incremental growth is absorbed by the established operating backbone.