Poonawalla Fincorp Limited, a non-deposit taking systemically important NBFC, has announced its audited financial results for the quarter and year ending March 31, 2026. The company reported a significant growth in its Profit After Tax (PAT), which increased by 69.6% quarter-on-quarter to ₹255 crore in Q4FY26.
The company’s Assets Under Management (AUM) stood at ₹60,348 crore. Net Interest Income (NII) saw a year-on-year growth of 78.5%, reaching ₹1,276 crore during the quarter. The Net Interest Margin (NIM), inclusive of fees and other income, improved to 9.05% in Q4FY26 from 8.62% in Q3FY26, marking an increase of 43 basis points quarter-on-quarter.
Poonawalla Fincorp’s Pre-Provision Operating Profit (PPoP) rose by 108.7% year-on-year to ₹695 crore for the quarter ended March 31, 2026. The company maintained stable asset quality, with Gross Non-Performing Assets (GNPA) at 1.44% in Q4FY26 compared to 1.51% in the previous quarter, and Net Non-Performing Assets (NNPA) at 0.74% against 0.80% in Q3FY26.
The credit cost as a percentage of average AUM decreased to 2.51% in Q4FY26 from 2.62% in Q3FY26. Stage 1 Assets accounted for 97.5% of on-book assets in Q4FY26, slightly up from 97.4% in Q3FY26.
Poonawalla Fincorp’s Capital Adequacy Ratio stood at 16.83% (Tier-1 at 15.90%) as of March 31, 2026, surpassing the regulatory requirement of 15%. Following a successful ₹2,500 crore capital raise through Qualified Institutional Placement (QIP), the simulated Capital Adequacy Ratio is 20.74% based on the March 2026 balance sheet, providing ample room for growth.
The company’s liquidity buffer was ₹7,590 crore as of March 31, 2026. The cost of borrowing for the quarter was 7.63%, 2 basis points lower than in Q3FY26. Additionally, 19 new AI projects were added this quarter, bringing the total to 76, with 42 projects successfully implemented.
Commenting on the results, Mr. Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, stated, “We have reached a pivotal inflection point in our growth trajectory. By simultaneously expanding our yields and optimising our operating architecture, we are seeing a powerful expansion in incremental NIMs. With credit costs trending lower and Opex-to-AUM decoupling, the business is now primed for high-quality, sustained profitability. Even as this operating leverage kicks in, we remain committed to strategic investments this fiscal year, ensuring our current momentum translates into a long-term, healthy, and durable earnings model.”
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).