Poonawalla Fincorp Eyes ₹25,500 Cr Raise After 8x Profit Jump

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AuthorAarav Shah|Published at:
Poonawalla Fincorp Eyes ₹25,500 Cr Raise After 8x Profit Jump
Overview

Poonawalla Fincorp Limited is planning a substantial ₹25,500 crore capital raise through equity and debt issuances. This strategic move follows a robust Q3FY26, where net profit surged eightfold year-on-year to ₹150.2 crore, driven by a 50% increase in net interest income to ₹920 crore. The NBFC aims to strengthen its capital base for aggressive lending business expansion.

Poonawalla Fincorp Limited announced on Friday, January 16, an ambitious capital-raising plan of up to ₹25,500 crore. The non-banking financial company's (NBFC) board approved a combination of equity and debt issuances designed to fuel future growth and bolster its lending operations.

Strong Financial Performance

The company's third-quarter fiscal year 2026 (Q3FY26) earnings report revealed a significant profit surge. Net profit leaped to ₹150.2 crore, an eightfold increase from ₹18.7 crore in the same period a year prior. This performance was also a substantial jump from the previous quarter's ₹74.2 crore. Net interest income (NII) saw a robust 50% year-on-year rise to ₹920 crore, up from ₹614 crore in Q3FY25, reflecting strong loan growth and improved yields. Total income rose 18% sequentially to ₹1,818.5 crore from ₹1,542.8 crore in Q2FY26.

Strategic Capital Infusion

The approved fundraising includes up to ₹5,500 crore via equity instruments, potentially through a Qualified Institutional Placement (QIP) or other permissible routes. This equity capital is intended to strengthen the company's base as its lending business scales. Additionally, the board cleared the raising of up to ₹20,000 crore through non-convertible debt securities (NCDs) on a private placement basis during fiscal year 2027 (FY27), to be executed in one or more tranches. The debt issuance offers flexibility in tenure and structure, encompassing both secured and unsecured instruments.

Operational Expansion and Governance

Poonawalla Fincorp reported its assets under management (AUM) grew by 77.5% from the previous year and 15.3% sequentially to approximately ₹55,000 crore as of December 31, 2025. In parallel governance updates, the board approved the appointment of Vikas Pandey as Additional Director and Whole-time Director for a five-year term, pending shareholder approval. Shareholders will be asked to vote on these proposals via postal ballot. Shares of Poonawalla Fincorp Limited closed 1.55% lower at ₹463.95 on Friday, prior to the announcements. The stock has gained 4.94% over the past month.

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