Poonawalla Fincorp's net profit soared by 21.8% year-on-year to ₹374.85 crore in the second quarter of fiscal year 2027, ending September 30. The company also improved its asset quality and net interest margin, signaling strong financial performance in consumer and MSME financing.
- Net profit increased 21.8% to ₹374.85 crore in Q2 FY27.
- Net interest margin (NIM) rose by 16 basis points to 9.26%.
- Gross non-performing assets (GNPA) decreased to 1.20% from 1.37%.
- Assets under management (AUM) reached ₹74,008 crore.
- Capital adequacy ratio stood at 18.68%, above regulatory requirements.
- Added 42 new AI projects, totaling 143, with 84 implemented.
What were the key financial results for Poonawalla Fincorp in Q2 FY27?
Poonawalla Fincorp reported a consolidated net profit of ₹374.85 crore for the quarter ended September 30, 2026. This was a 21.8% increase compared to ₹307.71 crore in the previous quarter. Net interest income rose by 12.3% quarter-on-quarter to ₹1,589 crore. The net interest margin improved by 16 basis points to 9.26% from 9.10% in the previous quarter.
How did Poonawalla Fincorp's asset quality change?
The company’s asset quality improved significantly. Gross non-performing assets (GNPA) decreased to 1.20% in Q2 FY27 from 1.37% in Q1 FY27. Net non-performing assets (NNPA) also declined sharply to 0.61% from 1.70% in the previous quarter. This improvement indicates better credit management and lower risk in the company’s loan portfolio.
What is the status of Poonawalla Fincorp's assets under management and capital adequacy?
As of September 30, 2026, Poonawalla Fincorp’s assets under management (AUM) reached ₹74,008 crore. The company experienced healthy growth across all retail products, with new products contributing 18% to the AUM. The capital adequacy ratio was 18.68%, which is well above the regulatory minimum of 15%, providing a strong buffer for future growth.
How is Poonawalla Fincorp using technology to support growth?
The company added 42 new artificial intelligence (AI) projects in the quarter, bringing the total to 143 AI initiatives. Out of these, 84 projects have been successfully implemented. These AI projects help improve operational efficiency and support the company’s strategy to build a resilient and sustainable earnings engine.
What did the company’s CEO say about the quarter’s performance?
Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, described the quarter as a turning point. He highlighted disciplined AUM expansion, improved net interest margin, and fee income optimization. Kapil emphasized the company’s strong pricing power and continuous asset quality improvements, which have lowered credit costs and increased return on assets. He also noted that the growing AI capabilities are reinforcing long-term sustainability.
How did the market respond to Poonawalla Fincorp's Q2 results?
Shares of Poonawalla Fincorp closed 2.15% higher at ₹447.30 on the National Stock Exchange on October 9, 2026. The results were announced after market hours. The company’s total market capitalization stood at ₹39,389.31 crore on the same day.
