Pune: Poonawalla Fincorp Limited delivered a strong financial performance for the quarter ended December 31, 2025, reporting robust growth across key metrics. (Poonawalla Fincorp Q3FY26)
The Board of Directors of Poonawalla Fincorp Limited announced that Assets Under Management (AUM) rose sharply by 77.6% year-on-year to ₹55,017 crore, supported by sustained momentum in its consumer and MSME lending portfolio.
During the quarter, Net Interest Income (NII), including fees and other income, increased 60.6% YoY to ₹1,080 crore. Profit after tax (PAT) for Poonawalla Fincorp Q3FY26 stood at ₹150 crore, more than doubling from ₹74 crore reported in the previous quarter.
Poonawalla Fincorp Q3FY26 Financial Performance Highlights
For the quarter ended December 31, 2025, Poonawalla Fincorp Q3FY26 recorded a 15.3% sequential growth in AUM, while maintaining a secured-to-unsecured on-book mix of 56:44. Net Interest Margin (NIM), including fees and other income, improved to 8.62% in Q3FY26 from 8.40% in Q2FY26.
Pre-Provision Operating Profit (PPoP) rose 41.5% YoY to ₹528 crore. Asset quality remained stable, with Gross NPA at 1.51% compared to 1.59% in the previous quarter, and Net NPA marginally improving to 0.80%. Credit cost as a percentage of average AUM moderated to 2.62% during the quarter.
Stage 1 assets accounted for 97.4% of on-book assets, reflecting portfolio stability. The company maintained a strong capital position with a Capital Adequacy Ratio of 18.17%, including Tier-1 capital at 17.15%, well above the regulatory requirement.
Liquidity buffer stood at ₹6,488 crore as of December 31, 2025, while cost of borrowings declined by 4 basis points quarter-on-quarter to 7.65%.
Commenting on the results, Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, stated that the company recorded a strong step-up in performance during the quarter, with profit after tax doubling quarter-on-quarter.
He highlighted that the sequential rise in pre-provision operating profit, improvement in return on assets to 1.2%, and moderation in credit costs reflected strengthening asset quality and disciplined execution.
Also Read: Force Motors Domestic Wholesales Record 49% December Growth, Q3 Volumes Up 47%
Technology and AI Initiatives in Poonawalla Fincorp Q3FY26
As part of its technology-led transformation, Poonawalla Fincorp Q3FY26 added 12 new artificial intelligence projects during the quarter, taking the total number of AI initiatives to 57.
These projects continue to support operational efficiency, risk management, and customer experience across business segments.
Poonawalla Fincorp Limited is a Cyrus Poonawalla Group-promoted, non-deposit taking systemically important non-banking finance company registered with the Reserve Bank of India.
As of December 31, 2025, the company had an AUM of ₹55,017 crore and a workforce of 5,264 employees. Its product portfolio spans personal, business, consumer, vehicle, education, and supply chain finance segments.
