Poonawalla Fincorp shares will grab attention on Monday after the company announced a big drop in profits. For the March 2025 quarter, their net profit fell by 81% compared to last year, reaching only Rs 62.33 crore, down from Rs 332 crore. This sharp decline was mainly because their expenses more than doubled during this period.
Despite this profit slump, Poonawalla Fincorp showed strong performance in other areas. Their net interest income (NII)—the money made from lending—rose by 12% from last year and 6% from the previous quarter, reaching Rs 715 crore. Plus, their assets under management (AUM) went up 43% year-on-year and 15% from the previous quarter, standing at Rs 35,631 crore. Growth in these assets was strong across all types of products.
Expenses surged to Rs 1,093 crore, up from Rs 536.26 crore last year, mostly due to higher finance costs and some bad debt charges. On a positive note, the company improved their on-book mix—from 54% to 57%—launched six new business projects, and saw a decrease in credit costs by 27% from the last quarter.
The Capital Adequacy Ratio (CAR)—showing the company’s ability to manage risks—was strong at 22.94% at the end of the quarter. Additionally, their Pre-Provision Operating Profit (PPoP) increased by 19% compared to last year and by 11% from the last quarter, reaching Rs 333 crore. Their Gross Non-Performing Assets (NPA)—loans that aren’t being repaid—slightly improved to 1.84%.
For the full financial year, NII grew by 23% to Rs 2,708 crore, and PPoP rose by 2% to Rs 1,417 crore, even with more spending on new ventures. Their liquidity buffer, which means cash on hand, stood at Rs 4,686 crore as of March 31, 2025.
Arvind Kapil, the Managing Director and CEO of Poonawalla Fincorp, commented on the results, saying the company is using better ways to assess customers for more sustainable growth. Poonawalla Fincorp is a part of the Cyrus Poonawalla group and is a non-banking finance company that doesn’t take deposits.
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