Poonawalla Fincorp’s shift into broader retail lending is paying off, with strong quarterly results and projections of rapid expansion driven by digital innovation and product diversification.
Poonawalla Fincorp’s shift into a broader retail lending business is starting to show up in the numbers, with analysts saying the company has moved beyond the heavy investment phase and into a period where newer products are gaining scale. The Hindustan Business Line said the lender’s widening distribution, stronger digital capabilities and tighter execution are helping it build a more resilient growth model, while the richer mix of products, customers and collateral should support better earnings quality.
That view is backed by the latest quarterly results, which Business Standard reported showed net profit in the quarter ended March 31, 2026, rising more than fourfold year on year to ₹255 crore from ₹62 crore. Net interest income climbed 78.16% to ₹1,276 crore, assets under management rose by nearly 70% and the net interest margin improved to 9.05% from the previous quarter. Business Upturn gave the same profit figure and said AUM reached ₹60,348 crore, underscoring the speed of the lender’s expansion.
Asset quality also appears to be strengthening. Business Standard reported gross bad loans fell to 1.44% and net non-performing assets to 0.74%, while the company said six new products launched in fiscal 2025 helped drive AUM growth. The lender has also set its sights on further expansion in consumer durables and gold loans, with the company aiming for more than twofold growth in its consumer durables business and a bigger gold loan network in fiscal 2027.
Against that backdrop, the brokerage behind the latest call says Poonawalla Fincorp is evolving from a turnaround story into an earnings compounder. It expects growth to be supported by multiple engines, including higher-yielding businesses, operating leverage and artificial intelligence-led productivity gains, and models about 43% annual AUM growth and 117% annual profit after tax growth over fiscal 2026-28. Based on its projections, the stock still looks inexpensive at 2.5 times forecast March 2028 book value, leading it to reiterate a Buy rating with a target price of ₹570, up from the current market price of ₹486.35.
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