Poonawalla Fincorp shares rose sharply by more than 8% on October 12, 2026, after the company reported strong financial results for the second quarter of the fiscal year 2026-27. Investors reacted positively to the firm’s healthy profit growth and improved asset quality, signaling confidence in its long-term sustainability.
- Net profit after tax increased nearly 22% sequentially to ₹374.85 crore in Q2 FY27.
- Year-on-year net profit grew fourfold compared to ₹74 crore in Q2 FY26.
- Core operating revenues rose 10% sequentially and 70% year-on-year.
- Net interest income increased 14% quarter-on-quarter to ₹2,416 crore.
- Gross non-performing assets (NPAs) improved from 1.37% to 1.2%.
- EBITDA rose 27% quarter-on-quarter to ₹1,571 crore with margins at 59.85%.
What drove Poonawalla Fincorp’s Q2 profit growth?
The company’s net profit after tax reached ₹374.85 crore in the second quarter, marking a 22% increase from the previous quarter and a significant rise from ₹74 crore in the same quarter last year. This growth was mainly due to a strong surge in interest income, which reflects the company’s effective lending operations and increased loan yields.
How did the company’s revenues and margins perform?
Poonawalla Fincorp’s core operating revenues increased by 10% sequentially to ₹2,124 crore and surged 70% year-on-year. The net interest income (NII) also grew 14% quarter-on-quarter to ₹2,416 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) improved by 27% to ₹1,571 crore, with margins expanding by 581 basis points to 59.85%, indicating better operational efficiency.
What improvements were seen in asset quality?
The company’s asset quality showed positive trends, with gross non-performing assets (NPAs) declining from 1.37% in Q1 FY27 to 1.2% in Q2 FY27. This improvement reduces credit risk and supports sustainable profitability.
What did management and analysts say about the results?
Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, highlighted the role of their advanced AI systems in driving these gains and emphasized the long-term sustainability of the business. Analysts from a global investment firm noted that the company’s strong asset under management (AUM) growth of 10% exceeded expectations, especially in new segments like Prime Personal Loans, Gold, and Education loans. They also pointed out that while net interest income was strong, non-interest income was weaker than expected.
How has the stock performed recently?
Poonawalla Fincorp shares reached an intraday high of ₹484 on October 12, 2026, up 8.2% from the previous close of ₹447.30. Trading volumes surged significantly, indicating strong investor interest. Despite some retraction during the day, shares remained 3.3% higher at around ₹462. Over the past five years, the stock has delivered a 181% return, although it declined 12.5% over the last year. Year-to-date, the stock was down 4.2% but showed a 4% gain in the past month.
What is the company’s current market position?
As of October 12, 2026, Poonawalla Fincorp’s market capitalization stood at ₹40,666 crore, reflecting its significant presence in the non-banking financial company (NBFC) sector.
Frequently Asked Questions
Q: What caused the increase in Poonawalla Fincorp’s net profit in Q2 FY27?
A: The increase was mainly due to a strong rise in interest income, supported by higher loan yields and growth in lending operations.
Q: How did asset quality change in the recent quarter?
A: Gross non-performing assets improved from 1.37% in Q1 FY27 to 1.2% in Q2 FY27, indicating better credit management.
Q: What new business segments contributed to growth?
A: Newer segments such as Prime Personal Loans, Gold loans, and Education loans showed strong growth momentum.
Q: How has the stock performed over the long term?
A: The stock has delivered a 181% return over the last five years but experienced a 12.5% decline in the past year.
