Poonawalla Fincorp reports strong Q2 FY26 growth, AUM up 68%

Poonawalla Fincorp Limited announced robust financial performance for Q2 FY26, with Assets Under Management (AUM) growing by 68% year-on-year and 15.6% quarter-on-quarter, reaching INR 47,701 crores as of September 30, 2025. Total disbursements in Q2 FY26 increased by approximately 16% quarter-on-quarter, nearly doubling on a year-on-year basis, with new product disbursements contributing 17% to the total. Net interest margin also saw an uptick, standing at 8.4% in Q2 FY26 compared to 8.32% in Q1 FY26.

The company's asset quality improved, with Gross Non-Performing Assets (GNPA) dropping to 1.59% in Q2 FY26 from 1.84% in Q1 FY26. Stage 1 assets rose to 97.1%, indicating stronger asset quality and stable borrowing performance. The cost of borrowing decreased from 8.04% to 7.69%, driven by increased NCD contribution, which reached approximately 35% of total borrowings. Poonawalla Fincorp also highlighted its intensive investment in digital transformation and AI, with 45 cutting-edge AI projects underway, 16 of which are live.

Strategic expansions include 160 gold loan branches (target 400 by March 2026) and 10,000 consumer durable dealer distribution points. The company aims for best-in-class credit costs and sustainable profitability, supported by diversified investments and technology-led transformation.