Poonawalla Fincorp Q4 profit jumps over 3x, skips dividend

Poonawalla Fincorp Ltd reported a sharp 309% year-on-year rise in its Q4 net profit at ₹255 crore, compared to ₹62 crore in the corresponding period last year.

As per exchange filings, the company's net interest income (NII) for the quarter grew 72% YoY to ₹1,050 crore from ₹610 crore.

Total revenue from operations stood at 2,115.49 crore, up from ₹ 1,166.27 crore in the year-ago period. Total expenses also increased to ₹1,779.32 crore, compared to ₹1,093.09 crore YoY.

In view of future growth plans, the company said that its board decided to conserve capital and did not declare any dividend for FY 2025-26.

The fincorp reported Assets Under Management (AUM) of ₹60,348 crore for the quarter ended March 31, 2026. Asset quality improved during the quarter, with Gross Non-Performing Assets (GNPA) declining to 1.44% in Q4FY26 from 1.51% in Q3FY26.

Net non-performing assets (NNPA) also eased to 0.74% in Q4FY26 compared to 0.80% in the previous quarter.

Additionally, credit cost as a percentage of average AUM moderated to 2.51% in Q4FY26 from 2.62% in Q3FY26, indicating an improvement in overall asset quality metrics.

Commenting on the results, Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp, said, “We have reached a pivotal inflection point in our growth trajectory. By simultaneously expanding our yields and optimizing our operating architecture, we are seeing a powerful expansion in incremental NIMs."

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He added, "With credit costs trending lower and Opex-to-AUM decoupling, the business is now primed for high-quality, sustained profitability.”

Shares of Poonawalla Fincorp Ltd ended at ₹438.00 on the NSE on May 5, rising ₹ 0.90 or 0.21% for the day, reflecting a marginal uptick in trading.

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