Poonawalla Fincorp LimitedFinancial ServicesPOONAWALLA
Q2 FY27 concall · earnings callPoonawalla Fincorp Limited
Q2FY27 was presented as an inflection quarter where 10.4% quarter-on-quarter AUM growth to ₹74,008 crore combined with NIM plus fees expansion to 9.26% and credit cost decline to 2.19% lifted ROA to 2.18%.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| AUM | ₹74,008 Cr | +10.4% QoQ | |
| Profit after tax | ₹375 Cr | +21.8% QoQ | |
| ROA | 2.18% | +20-basis point improvement over the previous quarter | |
| NIM plus fees | 9.26% | +16 bps QoQ | |
| Credit cost | 2.19% | from 2.40% in Q1FY27 | |
| GNPA | 1.2% | from 1.37% in Q1FY27 |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,057.03 Cr+38.6% YoY+6.9% QoQ | ₹18.73 Cr-92.9% YoYTurned profitable QoQ | ₹0.24-93% YoYTurned positive QoQ |
| Q2 FY25 | ₹988.87 Cr+33.9% YoY+1.2% QoQ | ₹-471.04 CrTurned loss-making YoYTurned loss-making QoQ | ₹-6.10Turned negative YoYTurned negative QoQ |
| Q1 FY25 | ₹977.59 Cr+41% YoY+6.8% QoQ | ₹291.64 Cr+29% YoY-12.1% QoQ | ₹3.79+45.8% YoY-12.1% QoQ |
| Q4 FY24 | ₹915.00 Cr+58.7% YoY+20% QoQ | ₹331.70 Cr+67.1% YoY+25.1% QoQ | ₹4.31+82.6% YoY+24.9% QoQ |
| Q3 FY24 | ₹762.61 Cr+9.3% YoY+3.2% QoQ | ₹265.14 Cr+45.3% YoY-69.2% QoQ | ₹3.45+45% YoY-69% QoQ |
TL;DR
- AUM stood at ₹74,008 crore with 10.4% quarter-on-quarter growth and new products at 28% of disbursements.
- Portfolio yield rose to 14.08% and NIM plus fees expanded to 9.26% from 9.10% in Q1FY27.
- Credit cost improved to 2.19% with GNPA at 1.2% versus 1.37% and broad improvement across Stage 1, 2 and 3.
- Opex-to-AUM was 4.15% reflecting frontloaded collections, AI and gold branch investments.
- PAT was ₹375 crore with ROA at 2.18%, alongside scale-up in gold, consumer durable, CV, education and digital prime personal loans.
Said on the call
“This quarter, in my view, marks an inflection point in establishing a self-sustaining earnings engine through the structural improvements across four key dimensions.”
From the Q&A
| Topic | What management said |
|---|---|
| Operating leverage and product profitability | Management said cross-sell is just starting after launches and distribution build-out, operating leverage will come from fixed-cost scale, digital journeys and AI, and new products contributed 28% of disbursements. |
| Credit cost outlook | Management said credit cost at 2.19% looks structural with downward bias, citing Stage 1/2/3 improvement, 6 MOB 30+ at 0.35% excluding gold loans, and 12 MOB 90+ improvement of over 53% for post-September 2024 originations. |
| Rate sensitivity and cost of borrowings | Management said one-third of borrowings are fixed-rate NCDs, diversified mix contained cost increases, cost of borrowing was 7.76% versus 7.72%, and disbursement yield pricing power allows pass-through. |
| Growth versus profitability and ROA drivers | Management said ROA improvement over next two years will come from all three vectors of lending spread, operating leverage including cross-sell, and further credit cost improvement, without shying away from sensible investments. |
| Seasoning, write-offs and insurance commission | Management said Stage 2 compression with growth reflects calibration, LAP, business loans and pre-owned cars have over 36 months seasoning, and insurance fee compression if proposed could be absorbed via lending spreads and operating leverage. |
Guidance
- On track to add a total of approximately 200 new gold loan branches in this financial year
- Opex-to-AUM movement sits within the 10 to 25 basis point range guided for
Source
Summary written from the transcript filed by Poonawalla Fincorp Limited for the call held on 9 Oct 2026; published 14 Oct 2026, 17:40 IST.
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