Poonawalla Fincorp Share Price: Q2 FY27 Profit Rises Five-Fold to ₹375 Crore, AUM Crosses ₹74,000 Crore
The Poonawalla Fincorp share price closed 2.15% higher at ₹447.30 on NSE on Friday, October 9, 2026, the day the NBFC reported its September-quarter results. Profit after tax for Q2 FY27 came in at ₹375 crore, compared with ₹74 crore a year earlier and ₹308 crore in Q1 FY27. Assets under management (AUM) reached ₹74,008 crore.
Big year-on-year jumps can hide as much as they reveal. So beyond the headline, this article looks at where the profit came from, how much of it credit costs consumed, and what the quarter does and doesn't tell investors.
Key Takeaways
- Q2 FY27 PAT: ₹375 crore, up about 407% year-on-year and 21.8% quarter-on-quarter.
- AUM: ₹74,008 crore as of September 30, 2026.
- Net interest margin (including fees and other income): 9.26%, up 16 basis points from Q1 FY27.
- Gross NPA improved to 1.20% from 1.37%; net NPA to 0.61% from 0.70%.
- Credit costs still absorbed about 43% of operating profit, by GoPocket's calculation.
What Did Poonawalla Fincorp Report for Q2 FY27?
Poonawalla Fincorp, a non-deposit-taking systemically important NBFC, announced unaudited results for the quarter ended September 30, 2026, on October 9, according to the Free Press Journal. The year-on-year comparisons below are from The Economic Times, based on the exchange filing.
| Metric (₹ crore) | Q2 FY27 | Q2 FY26 | YoY change |
|---|---|---|---|
| Total interest income | 2,416 | 1,402 | +72.3% |
| Interest expenses | 1,035 | 638 | +62.2% |
| Net interest income (NII) | 1,380 | 764 | +80.6% |
| Operating expenses | 712 | 518 | +37.5% |
| Operating profit (PPOP) | 877 | 387 | +126.6% |
| Credit costs | 376 | 288 | +30.6% |
| Profit after tax | 375 | 74 | +406.8% |
Note: The company also reports NII including fees and other income, which stood at ₹1,589 crore, up 12.3% quarter-on-quarter. The ₹1,380 crore figure excludes fees and other income.
Why Did Profit Jump So Sharply?
The five-fold rise is mainly a story of a low base and operating leverage. Net interest income grew 80.6%, while operating expenses rose only 37.5%. That gap more than doubled pre-provision operating profit. Credit costs grew just 30.6%, so most of the extra operating profit flowed through to the bottom line.
The year-ago quarter, Q2 FY26, had a profit of only ₹74 crore. A small base makes percentage growth look dramatic. The sequential comparison, a 21.8% rise from ₹308 crore in Q1 FY27, is a more useful guide to current momentum.
How Healthy Is the Loan Book?
Asset quality improved during the quarter, according to the Free Press Journal report:
| Indicator | Q1 FY27 | Q2 FY27 |
|---|---|---|
| Gross NPA | 1.37% | 1.20% |
| Net NPA | 0.70% | 0.61% |
| Credit cost (% of average AUM) | 2.40% | 2.19% |
| NIM incl. fees and other income | 9.10% | 9.26% |
| Return on assets | 1.98% | 2.18% |
A gross NPA is a loan where repayment is overdue by more than 90 days, as a share of total loans. Net NPA is the same after deducting provisions. Return on assets (RoA) shows how much profit the lender earns on every ₹100 of assets; Poonawalla's RoA has risen from 1.81% in Q4 FY26 to 2.18% now.
The capital adequacy ratio was 18.68% (Tier-1: 17.15%) against a regulatory minimum of 15%, and the company held a liquidity buffer of ₹6,526 crore.
GoPocket Analysis: Three Numbers Worth Noting
- Cost-to-income ratio of about 45%. Operating expenses of ₹712 crore against operating income of ₹1,589 crore (₹712 crore + ₹877 crore PPOP) gives roughly 44.8%. This is a high share for a lender, reflecting investment in branches and technology.
- Credit costs took about 43% of operating profit. ₹376 crore of credit costs against ₹877 crore of PPOP. Any rise in defaults would hit profit quickly, which is why credit cost trends matter more than headline growth.
- Market value about 26 times annualised quarterly profit. The Economic Times put market capitalisation at ₹39,389 crore. Annualising Q2 profit (₹375 crore × 4 = ₹1,500 crore) gives roughly 26 times. This is a simple illustration, not a forecast; quarterly profit can change.
What Did Management Say?
"Q2 marked a decisive inflection point in establishing a resilient and self-sustaining earnings engine," said Arvind Kapil, MD and CEO, as quoted by The Economic Times. The company also said its gold loan branch network has expanded to 550 branches, and it reported no accelerated write-offs during the quarter.
What Are the Risks?
- Rising interest rates: The RBI raised the repo rate to 5.50% on October 7, 2026. Higher borrowing costs can squeeze NBFC margins if lenders can't pass them on. See our guide to the RBI rate hike and FD rates.
- Unsecured lending exposure: Fast growth in consumer and small business loans can show stress with a lag.
- High operating costs: Expansion spending keeps the cost-to-income ratio elevated.
- Share price performance: The stock was down 7.60% in 2026 up to October 9, according to The Economic Times, despite the profit recovery.
What Should Investors Watch Next?
- Whether gross NPA and credit cost keep falling in Q3 FY27.
- Cost of borrowing after the repo rate hike.
- Growth in gold loans and secured products versus unsecured lending.
- Trends in other NBFCs and housing finance companies such as Can Fin Homes and LIC Housing Finance as Q2 results continue.
Track the live Poonawalla Fincorp share price on GoPocket.
Sources
- Free Press Journal, Poonawalla Fincorp Reports Q2 FY27 Profit Of ₹375 Crore, AUM Reaches ₹74,008 Crore, October 9, 2026
- The Economic Times (via inkl), Poonawalla Fincorp Q2 Results: Profit skyrockets 407% YoY to Rs 375 crore, NII rises 81%, October 9, 2026
- NSE bhavcopy closing prices, October 9, 2026
Disclaimer: This article is for information and educational purposes only. It is not a recommendation to buy, sell or hold any security. Calculations are GoPocket's illustrations based on reported figures. Past performance does not guarantee future returns. Please consult a SEBI-registered investment adviser before investing.
