Poonawalla Fincorp Doubles Profit, Plans ₹5,500 Crore Capital Infusion

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AuthorKavya Nair|Published at:
Poonawalla Fincorp Doubles Profit, Plans ₹5,500 Crore Capital Infusion
Overview

Poonawalla Fincorp reported a robust third quarter, with net profit more than doubling sequentially to ₹150 crore. The NBFC plans a substantial ₹5,500 crore fundraise via Qualified Institutions Placement to strengthen its capital base. Assets under management crossed ₹55,000 crore, and a seasoned executive was appointed.

Profit Surge Drives Strong Quarterly Performance

Poonawalla Fincorp announced a significant leap in its financial performance for the third quarter ended December 31, 2025. The Mumbai-headquartered non-banking finance company (NBFC) posted a consolidated net profit after tax (PAT) of ₹150.22 crore, a remarkable 102.4% increase from the ₹74.20 crore earned in the preceding quarter.

On a year-on-year basis, the growth was even more pronounced, with profits soaring from ₹18.73 crore in the same quarter last fiscal. The company's total income climbed to ₹1,818.48 crore, driven largely by a ₹1,659.65 crore contribution from interest income. Net interest income (NII) recorded a healthy 60.6% year-on-year growth, reaching ₹1,080 crore.

Ambitious Fundraising Plans Unveiled

To fuel its expansion and bolster its capital structure, Poonawalla Fincorp's board approved a proposal to raise up to ₹5,500 crore. This capital infusion will primarily occur through a Qualified Institutions Placement (QIP) or other permissible modes. Furthermore, the company signaled long-term financing readiness by clearing the issuance of non-convertible debt securities up to ₹20,000 crore for the fiscal years 2026-27.

Management Appointments and Asset Growth

The company also strengthened its leadership team by appointing Vikas Pandey as an additional director and whole-time director for a five-year term. Pandey, an alumnus of UC Berkeley, brings over two decades of experience from HDFC Bank. Poonawalla Fincorp's assets under management (AUM) reached ₹55,017 crore as of the quarter's end. Management highlighted moderating credit costs and improved asset quality, maintaining a strong return on assets (RoA) of 1.2% despite a one-time provision.

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