Poonawalla Fincorp reported a 406.8% surge in Q2FY27 net profit to Rs 375 crore. The company saw net interest income jump 80.6% to Rs 1,380 crore. Managing director Arvind Kapil said, "We have delivered disciplined AUM expansion while enriching total realizations." The firm also expanded its gold loan network to 550 branches.
Poonawalla Fincorp reported a 406.8% YoY surge in Q2FY27 net profit to Rs 375 crore, driven by robust NII growth and improving asset quality. Net interest income jumped 80.6% to Rs 1,380 crore. The NBFC also expanded its gold loan branch network to 550 locations during the quarter.
Shares of Poonawalla Fincorp will be in focus heading into trade on Monday after the company reported a 406.8% year-on-year (YoY) increase in profit after tax (PAT) to Rs 375 crore for Q2FY27, compared with Rs 74 crore in the corresponding quarter last year.
The non-banking financial company's (NBFC) net interest income (NII) rose 80.6% YoY to Rs 1,380 crore from Rs 764 crore in Q2FY26, according to its exchange filing. Total interest income grew 72.3% YoY to Rs 2,416 crore during the quarter, against Rs 1,402 crore a year earlier. Interest expenses increased 62.2% to Rs 1,035 crore from Rs 638 crore in the corresponding period last year.
Poonawalla Fincorp reported an improvement in asset quality during the quarter, with gross non-performing assets (GNPA) declining by 17 basis points (bps) quarter-on-quarter (QoQ) and 39 bps YoY. The company also reported that it did not undertake any accelerated write-offs during the quarter.
The NBFC expanded its gold loan distribution network to 550 branches. Its sourcing channels include direct selling agents (DSAs), digital platforms, tele-calling and its in-house sales team. The company also highlighted a continued improvement in return on assets (RoA), attributing the progress to better efficiency and capital allocation.
Arvind Kapil, managing director and chief executive officer of Poonawalla Fincorp, described Q2 as a turning point in the company's efforts to build a resilient, self-sustaining earnings engine through structural improvements across its four core performance areas.
"We have delivered disciplined AUM expansion while enriching total realizations via NIM and fee income optimization, demonstrating strong pricing power across core and newly incubated verticals. Concurrently, continuous asset quality refinement has driven credit costs lower from an already formidable baseline, translating directly into a structural lift in our Return on Assets (RoA). Accelerated by our rapidly maturing proprietary AI layer, these foundational, cross-vector gains reinforce the compounding power and long-term sustainability of our franchise," Kapil said.