Poonawalla Fincorp delivered exceptional March quarter results with profit after tax reaching ₹255 crore for the quarter ended March 2026, representing a 70% sequential jump from ₹150 crore in the December quarter. According to reports from The Economic Times, the non-banking finance company's performance was driven by margin expansion, higher lending income, and stable asset quality improvements.
The company's Assets Under Management crossed the ₹60,000 crore milestone, standing at ₹60,348 crore at the end of March 2026. As reported by The Economic Times, net interest income, including fees and other income, rose 78% year-on-year to ₹1,276 crore during the quarter. Pre-provision operating profit came in at ₹695 crore, up 109% YoY, reflecting stronger operating leverage and higher business volumes.
Net interest margin, including fees and other income, improved to 9.05% in the March quarter from 8.62% in the December quarter, an expansion of 43 basis points sequentially. According to The Economic Times, gross non-performing assets stood at 1.44% at the end of March, compared with 1.51% in the previous quarter. Net non-performing assets improved to 0.74% from 0.80% in the December quarter, while credit cost as a percentage of average AUM eased to 2.51% from 2.62% in the previous quarter.
The company's capital adequacy ratio stood at 16.83% as of March 31, with Tier-I capital at 15.90%, both above regulatory requirements. Following its recently completed ₹2,500 crore qualified institutional placement, the company's simulated capital adequacy ratio would rise to 20.74% based on the March balance sheet. As reported by The Economic Times, the company maintained a liquidity buffer of ₹7,590 crore as of March 2026, while cost of borrowing declined marginally to 7.63%, lower by 2 basis points compared with the previous quarter.
Poonawalla Fincorp continued its technology investment strategy, adding 19 new AI projects during the quarter, taking the total number of AI-led initiatives to 76, of which 42 have already been implemented. According to The Economic Times, Managing Director and CEO Arvind Kapil stated that the company had reached an "inflection point" in its growth journey, noting that by simultaneously expanding yields and optimizing operating architecture, the company is seeing powerful expansion in incremental NIMs.
