CRISIL has reaffirmed Poonawalla Fincorp Limited’s (PFL) long-term rating at CRISIL AAA/Stable and short-term rating at CRISIL A1+. A CRISIL AAA/Stable rating has also been assigned to Rs 10,000 crore of Non-Convertible Debentures. The ratings are underpinned by the strategic importance of and support from Rising Sun Holdings Private Limited (RSHPL), healthy capitalization, a diversified resource profile, and experienced senior management.
Rating Actions Overview
Poonawalla Fincorp Limited’s (PFL) ratings have been reaffirmed and assigned by CRISIL. The key highlights include:
- Long Term Rating: Reaffirmed at CRISIL AAA/Stable
- Short Term Rating: Reaffirmed at CRISIL A1+
- Rs 15,285 Crore Total Bank Loan Facilities: Enhanced from Rs.12,285 Crore and rated CRISIL AAA/Stable
- Rs 10,000 Crore Non Convertible Debentures: Assigned CRISIL AAA/Stable
Key Rating Drivers
The ratings are driven by several factors:
- Strategic Importance and Support: Continued expectation of support from Rising Sun Holdings Private Limited (RSHPL), holding 63.96% stake in PFL.
- Capitalization: Healthy capitalization, diversified product offerings, and resource profile with competitive cost of borrowings. Networth stood at Rs 9,822 crore as on September 30, 2025.
- Experienced Management: The company is governed by an experienced board and supported by a strong senior management team.
Asset Quality
PFL reported a gross non-performing asset (GNPA) of 1.59% as of September 30, 2025, compared to 1.84% as of March 31, 2025. Net NPA stood at a comfortable 0.81% as of September 30, 2025. The company’s AUM grew by approximately 68% (annualized) in the first half of fiscal 2026, reaching Rs 47,701 crore as of September 30, 2025.
Resource Profile & Funding Costs
The company benefits from a diversified funding mix, including capital markets and bank loans, at competitive funding costs. Weighted average cost of borrowings stood at 7.69% as of September 30, 2025.
Liquidity
As of September 30, 2025, the company had unencumbered cash, cash equivalents, and liquid investments of around Rs 1,787 crore, as well as unutilized working capital demand lines of approximately Rs 4,474 crore. The ALM profile of the company remained strong with positive cumulative gaps across all buckets.
Outlook
The stable outlook reflects the expectation of continued support from RSHPL.
Source: BSE