Poonawalla Fincorp reported a strong Q3 FY26, driven by robust AUM growth of 77.6% YoY and a significant 102% QoQ increase in PAT. The company demonstrated improved asset quality with an 8 bps QoQ reduction in GNPA to 1.51% and expanded NIM by 22 bps to 8.62%. Strategic focus on new product launches, digital transformation, and optimized borrowing costs contributed to this positive performance.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| AUM | ₹55K Cr | +77.6% YoY |
| Net Interest Margin (incl. fees) | 8.62% | — |
| GNPA | 1.51% | — |
| Stage-1 Assets | 97.4% | — |
| Cost of Borrowing | 7.65% | — |
| Net Interest Income (incl. fees) | ₹1.1K Cr | — |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| AUM(crores) | 60348 | |
| Cost of Borrowing | 7.65% | |
| PPOP(crores) | 695 | |
| PAT(crores) | 255 | |
| GNPA | 1.44% | |
| Credit Cost | 2.51% |
| Category | Headline | |
|---|---|---|
Debt | Debt disclosed Cost 7.6% | |
Liquidity | Liquidity disclosed Surplus liquidity of ₹6,488 crores as of December 31st, 2025. LCR at 156% as of December 31st, 2025, well above regulatory requirement of 100%. |
| Category | Target | Priority |
|---|---|---|
| Debt Mix | NCD contribution to total borrowings→30-35% | High |
| Portfolio Mix | Share of Gold Loans, Education Loans, Personal Loans, LAP in AUM→50-60% | Medium |
| Commercial Business Distribution | Commercial retail disbursement through direct channel→40-50% | High |
| Education Loan Network | Consultant network expansion→beyond 500+ | High |
| Customer Service AI | Autonomous resolution of voice and chat interactions→80% | High |
| Customer Service AI | AI platform go-live (Hindi and English)→Go live | High |
| AUM Growth | Overall AUM growth→35-40% | Medium |
| Credit Costs | Credit costs→Reduce | Medium |
| # | Metric | |
|---|---|---|
| 01 | NCD contribution to total borrowings | |
| 02 | Share of Gold Loans, Education Loans, Personal Loans, LAP in AUM | |
| 03 | Overall AUM growth | |
| 04 | Credit cost reduction trajectory | |
| 05 | Customer service AI platform go-live |
| Severity | Risk |
|---|---|
medium | Higher credit costs for instant loans Instant loans inherently carry a higher standard on credit cost compared to other lending products. Management |
low | Impact of portfolio mix on consolidated credit cost Consolidated credit cost is a mathematical weighted average reflecting the proportional contribution of different businesses, meaning movements are a function of changing portfolio composition. Management |
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.