Poonawalla Fincorp announced a strong 68% year-on-year growth in Assets Under Management (AUM), reaching ₹47,701 crore. The company is focused on long-term sustainable profitability with risk management, investing in digital transformation and AI. Q2 FY26 saw growth in disbursements, new products contributions, and improved asset quality. The company aims for best-in-class credit costs and continuous digital expansion.
Strong Financial Performance
Poonawalla Fincorp reported an AUM of ₹47,701 crore as of September 30, 2025, marking a 68% year-on-year growth and a 15.6% quarter-on-quarter increase. Disbursements in Q2 FY26 grew by 16% quarter-on-quarter. New product disbursements reached approximately ₹750 crore for September 2025, with new products contributing 17% to total disbursements in Q2 FY26. The company’s on-book secured mix stands at 56%.
Improved Asset Quality
The company’s Net Interest Margin (NIM) increased to 8.4% in Q2 FY26, up from 8.32% in Q1 FY26. Gross Non-Performing Assets (GNPA) improved to 1.59% in Q2 FY26, a decrease from 1.84% in Q1 FY26. Stage 1 assets rose to 97.1%, reflecting stronger asset quality. Cost of borrowing decreased from 8.04% to 7.69%.
Business Highlights
The LAP book grew by 136% year-on-year and 23% quarter-on-quarter. Business loans portfolio grew by 54% year-on-year and 8% quarter-on-quarter. Prime PL average monthly disbursals have reached approximately ₹400 crores in Q2 FY26, with 26% processed through a fully digital journey. Gold loan operations are now at 160 branches, with monthly disbursements reaching ₹110 crores in September 2025. Consumer durable loans have expanded to 10,000 dealer distribution points, with disbursement values almost doubling to ₹65 crores in September 2025. Commercial vehicle disbursals reached approximately ₹100 crores in September 2025.
Digital Transformation and AI Initiatives
The company has 45 ongoing AI projects, with 16 projects live. Digital initiatives focus on automation and digitization of operational processes. Plans include AI-powered speech analytics, a Gen AI voice bot, and a modular agentic AI workflow for branch processes.
Debt and Awards
The company raised ₹2,355 crores through secured NCDs during Q2FY26 and a total of ₹7,800 crores during H1FY26. NCDs now make up 27% of total borrowing and are targeting 30-35%. Poonawalla Fincorp received the ‘Most Innovative Practice’ award for AI-powered underwriting and hiring at the CII National Awards for Artificial Intelligence 2025.
Source: BSE
