Poonawalla Fincorp Q2 results: Net profit soars 22% YoY to ₹375 crore, asset quality improves

The company recorded a consolidated net profit of ₹374.85 crore in the quarter ended September 30, 2026, marking a 21.8% quarter-on-quarter (QoQ) rise from ₹307.71 crore in the quarter-ago period.

Its net interest income (NII) climbed 12.3% QoQ to ₹1,589 crore during the quarter under review from the first quarter of FY27, according to a regulatory filing.

Its net interest margin (NIM) improved by 16 basis points (bps) QoQ to 9.26% in the second quarter of FY27, in comparison to 9.10% in the preceding quarter.

The company saw its asset quality improve, with gross non-performing assets (GNPA) contracting sequentially to 1.20% for the reporting quarter, as against 1.37% in Q1 FY27.

Its net non-performing assets (NNPA) also declined to 0.61% in Q2 FY27, from 1.70% in the previous quarter of the same fiscal year.

The company reached assets under management (AUM) of ₹74,008 crore as on September 30, 2026, with healthy momentum across all retail products. Its new products contributed 18% to the AUM.

Capital adequacy ratio stood at 18.68% as on September 30, 2026, well above the regulatory requirement of 15%, providing enough headroom for growth, it said.

The firm further stated that it added 42 new AI projects in the quarter, bringing the total to 143 cutting-edge AI projects, of which 84 projects were successfully implemented.

Commenting on the development, Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp, said: “This quarter marks a decisive inflection point in establishing a highly resilient, self-sustaining earnings engine through simultaneous, structural improvements across our four core performance vectors. We have delivered disciplined AUM expansion while enriching total realizations via NIM and fee income optimization, demonstrating strong pricing power across core and newly incubated verticals.”

Concurrently, Kapil added, continuous asset quality refinement has driven the company’s credit costs lower from “an already formidable” baseline, translating directly into a structural lift in its Return on Assets (RoA).

“Accelerated by our rapidly maturing proprietary AI layer, these foundational, cross-vector gains reinforce the compounding power and long-term sustainability of our franchise,” he stated.

Shares of Poonawalla Fincorp closed 2.15% higher at ₹447.30 apiece on the National Stock Exchange (NSE) on Friday, October 9. However, the results were announced after the markets closed.

Poonawalla Fincorp has a total market capitalisation of ₹39,389.31 crore as of October 9, 2026, according to data on the NSE.