Shares of Poonawalla Fincorp Ltd declined 2.93% to ₹369.25 on Monday after the company reported a sharp fall of over 81% in its net profit for the January–March quarter of FY25. The NBFC reported a standalone net profit of ₹62.33 crore for Q4FY25, compared to ₹331.70 crore in the same quarter last year.
While revenue from operations rose by 27% year-on-year to ₹1,166.27 crore, the steep fall in profitability weighed heavily on investor sentiment.
Net interest income (NII) for the quarter improved by 12% YoY to ₹715 crore. Additionally, the company’s assets under management (AUM) rose by a robust 42.5% YoY to ₹35,631 crore. However, despite operational growth, the company’s asset quality deteriorated, with the gross NPA margin rising to 1.84% and the net NPA margin to 0.85%.
The sharp decline in profit was attributed to one-time operating expenses and accelerated provisioning related to its erstwhile STPL book during Q2FY25 (amounting to ₹666 crore), along with continued investments in new businesses such as the recently launched gold loan vertical. Poonawalla Fincorp also announced plans to open 400 new gold loan branches in FY26.
Notably, the company did not declare any dividend for the financial year, stating that it aims to conserve capital to fuel future growth plans.
In a statement, CEO and MD Arvind Kapil said, “Smarter AI. Sharper digital journeys. With risk-first thinking and next-gen analytics, we’re reimagining customer assessment for a more agile and sustainable profits.”
The fall in net profit, increased provisioning, and absence of dividend led to selling pressure on Poonawalla Fincorp’s stock despite operational metrics showing year-on-year growth.
