Mumbai | 06-Oct-2025, 10:20 IST — via Poonawalla Fincorp corporate filing
Poonawalla Fincorp Ltd has announced its business update for the quarter ended September 30, 2025 (Q2 FY26), reporting strong balance-sheet expansion. The NBFC’s Assets Under Management (AUM) soared nearly 68% year-on-year to ~₹47,625 crore, with sequential growth of ~15.4% QoQ. Liquidity levels remained robust at ~₹6,200 crore, ensuring balance sheet strength to support future growth.
AUM Growth: Momentum Continues
- AUM of ~₹47,625 crore reflects one of the fastest growth phases in Poonawalla’s history.
- Year-on-year expansion of 67.7% highlights aggressive scaling across loan segments.
- Sequential growth of 15.4% signals consistent disbursal momentum, not merely seasonal or base-effect driven.
The company’s growth trajectory underscores its strategic push in retail lending, MSME credit, and personal finance, although segmental data will be clarified in full results.
Liquidity Profile: Comfort Maintained
Despite rapid credit expansion, Poonawalla Fincorp has maintained a liquidity buffer of ~₹6,200 crore. This provides comfort against funding volatility and positions the NBFC to capitalize on disbursal opportunities without liquidity stress.
Analysts note that with systemic cost of funds rising, maintaining such a buffer is critical to protect spreads and ensure resilience.
Growth Drivers
- High Growth, High Scrutiny
While the pace of AUM growth is positive, investors will monitor whether underwriting standards remain intact. Rapid balance-sheet expansion in NBFCs often tests asset quality. - Asset Quality Lens
The upcoming detailed Q2 earnings will reveal trends in Gross/Net NPAs, provisioning, and credit costs. These indicators will determine whether growth is profitable and sustainable. - Funding Mix & Margins
Liquidity is strong, but the cost of incremental borrowing could impact Net Interest Margins (NIMs). Rating actions and borrowing programs will remain under investor scrutiny. - Peer Comparison
Poonawalla’s growth places it ahead of many peers in the mid-sized NBFC category, but relative performance against Bajaj Finance, Cholamandalam Finance, and Muthoot Finance will be keenly tracked.
Outlook
With AUM growth trending above 60% YoY and liquidity intact, Poonawalla Fincorp enters Q3 with strong momentum. Key watchpoints will include:
- Disbursement quality: Whether growth is skewed toward unsecured segments.
- Margins: Impact of higher borrowing costs on spreads.
- Asset Quality: NPA levels in a rising rate environment.
- Capital Adequacy: Plans for raising fresh equity/debt to sustain balance sheet expansion.
If execution holds, Poonawalla may continue consolidating its position among India’s fastest-growing retail-focused NBFCs.
