Quarterly results for Poonawalla Fincorp Ltd
Company: Poonawalla Fincorp Limited
Announcement Date: 16 January 2026
Financial Performance (Q3 FY26 – Consolidated)
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Revenue:
- Reported Revenue from Operations: ₹1,818.42 Cr
- No Excise Duty/VAT line item disclosed; figures used as reported.
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YoY Growth:
- Revenue up 72% YoY (₹1,818.42 Cr vs ₹1,057.03 Cr in Q3 FY25)
- Net profit up sharply to ₹150.22 Cr (vs ₹18.73 Cr in Q3 FY25)
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QoQ Growth:
- Revenue up 18% QoQ (₹1,818.42 Cr vs ₹1,542.30 Cr in Q2 FY26)
- Net profit doubled QoQ (₹150.22 Cr vs ₹74.20 Cr in Q2 FY26)
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Key Expense Heads (Q3 FY26):
- Finance costs: ₹738.71 Cr
- Impairment on financial instruments: ₹295.47 Cr
- Employee benefits: ₹284.94 Cr
- Other expenses: ₹243.00 Cr
- Depreciation/amortization: ₹24.10 Cr
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Operating Profit / EBITDA:
- For a financing company, EBITDA is not a standard metric; focus is on pre-provision profit and net profit.
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Net Profit and Margins:
- Net Profit: ₹150.22 Cr
- Net Margin: 8.26% (PAT/Total Income)
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Earnings Per Share:
- Basic EPS: ₹1.86 (Q3 FY26) vs ₹0.24 (Q3 FY25)
- Diluted EPS: ₹1.85 (Q3 FY26)
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Balance Sheet Highlights:
- Net worth: ₹10,046.44 Cr (Consolidated)
- Debt-equity ratio: 4.23x
- Gross Stage 3 assets: 1.51% (Standalone)
- Net Stage 3 assets: 0.80% (Standalone)
- Security cover on debt: 121% (exclusive), 100% (pari-passu)
- No defaults or delays on debt
What’s Different This Quarter
- Growth Acceleration:
- Revenue and net profit both saw substantial sequential and annual increases, with net profit more than doubling QoQ and rising nearly 8x YoY.
- Expense Trends:
- Finance costs and employee expenses rose in line with business growth and new regulatory provisions (₹6.42 Cr impact from new Labour Codes).
- Impairment charges (₹295.47 Cr) remain significant but are lower than Q3 FY25 (₹347.87 Cr), supporting improved profitability.
- Capital Structure:
- Significant equity infusion: ~₹1,500 Cr raised via preferential issue to promoter (33.15 Cr shares at ₹452.51/share).
- Additional 1.47 Cr shares allotted under ESOPs.
- Fundraising approvals: up to ₹5,500 Cr via equity, ₹20,000 Cr via NCDs.
- Asset Quality Actions:
- 14,286 stressed loan accounts (₹226.64 Cr principal) transferred to ARCs; 58,006 written-off loans (₹177.80 Cr) sold.
- Gross/Net Stage 3 ratios remain low, indicating stable asset quality.
- Corporate Actions:
- Appointment of Mr. Vikas Pandey as Whole-time Director (effective 16 Jan 2026).
- Ongoing plan to divest joint venture Jaguar Advisory Services (classified as asset held for sale).
Company Updates
- Auditor’s Review:
- Unmodified limited review reports on both standalone and consolidated results; no qualifications or concerns.
- No Segmental Diversification:
- Company remains focused on financing business; no segment or geographic breakdown.
- No Material Accounting Changes:
- No regrouping or reclassification impacting comparability.
- No Defaults:
- No delays or defaults on debt securities; security cover ratios remain strong.
Historical Context
- No historical quarterly data available for comparison; all commentary is based on current and prior-year/quarter figures as disclosed.
In summary:
Poonawalla Fincorp delivered a strong Q3 FY26, with significant acceleration in revenue and profitability, improved asset quality, and a strengthened capital base following a major equity infusion. The company remains focused on its core financing business, with no segmental diversification, and continues to maintain robust security cover and asset quality metrics. No auditor concerns or material accounting changes were noted.