Poonawalla Fincorp shares surged 6% in early trade on Wednesday following the company's impressive quarterly results. According to reports from The Hindu BusinessLine, the stock climbed to ₹465 on the NSE before trimming gains to trade at ₹449.90 at 10:07 am, compared with the previous close of ₹439. The significant market response reflects investor confidence in the company's strong earnings momentum and operational improvements.
The company delivered exceptional financial performance with standalone net profit of ₹254.79 crore for the quarter ended March 2026, representing a sharp jump from ₹62.33 crore in the same period last year. As reported by The Hindu BusinessLine, this strong earnings momentum signals a significant turnaround in the company's performance trajectory. For the full year FY26, profit after tax stood at ₹541.81 crore, compared with a loss of ₹98.34 crore in FY25, marking a substantial recovery in profitability.
According to the company's results reported by The Hindu BusinessLine, assets under management stood at ₹60,348 crore with a secured to unsecured on-book mix of 54:46. Net interest income, including fees and other income, rose 78.5% year-on-year to ₹1,276 crore, demonstrating strong revenue growth. The net interest margin improved to 9.05% in Q4 FY26 from 8.62% in Q3 FY26, expanding 43 basis points quarter-on-quarter, indicating enhanced operational efficiency.
The company's asset quality showed significant improvement with gross non-performing assets (GNPA) declining to 1.59% in Q2FY26 from 1.84% in Q1FY26, as reported by recent financial data. Net non-performing assets (NNPA) improved to 0.81% in Q2FY26 versus 0.85% in Q1FY26, indicating enhanced risk management and collection efficiency. This sequential improvement in asset quality ratios, combined with the net interest margin of 8.40% in Q2FY26, demonstrates the company's ability to maintain profitability while managing credit risks effectively.
Managing Director and CEO Arvind Kapil commented on the performance, stating that the company has reached an inflection point in its growth trajectory, supported by expanding yields and improving operating efficiency. As reported by The Hindu BusinessLine, he noted that incremental net interest margins are strengthening, while lower credit costs and operating leverage are positioning the business for sustained profitability. The board decided to conserve capital and accordingly did not declare any dividend for FY25-26, as reported by The Hindu BusinessLine. This capital conservation strategy reflects the company's focus on strengthening its balance sheet and positioning for future growth opportunities in the financial services sector.
