Poonawalla Fincorp reported a fourfold increase in its net profit to Rs 255 crore for the March quarter. The company’s Assets Under Management (AUM) surged by 69.4% to Rs 60,348 crore. Net Interest Income (NII) also rose 78.5% year-on-year to Rs 1,276 crore during the quarter.

The Net Interest Margin (NIM) improved to 9.05% in Q4FY26 compared to 8.62% in Q3 FY26, showing a sequential increase of 43 basis points. On the asset quality front, the Gross Non-Performing Assets (NPA) stood at 1.44%, and the Net NPA was at 0.74% in Q4 FY26.

The cost of borrowing for this quarter was 7.63%, which is 2 basis points lower sequentially and 44 basis points lower year-on-year. The credit cost as a percentage of average AUM was 2.51%. Poonawalla Fincorp’s Capital Adequacy Ratio (CAR) was at 16.83%.

Following a successful capital raise of Rs 2,500 crore through a Qualified Institutional Placement (QIP), the CAR is projected to increase to 20.74%. The liquidity buffer stood at Rs 7,590 crore as of March 31, 2026. Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, stated that the company is seeing an expansion in incremental NIMs by simultaneously increasing yields and optimising its operational structure.

With declining credit costs and a decoupling of operating expenses to AUM, the business is well-positioned for high-quality, sustained profitability.

The company aims to build a large consumer franchise, targeting to double its consumer durables business and expand its gold loan network, while also scaling up digitally offered business loans. Poonawalla Fincorp plans to grow its AUM at a compound annual growth rate (CAGR) of 35-40% over the next few years.

Artificial intelligence (AI) is expected to enhance revenue by improving customer interactions, optimising calls, and refining digital marketing efforts. Poonawalla Fincorp added 19 new AI projects, bringing the total to 76, with 42 projects successfully implemented.

The company’s product offerings include: loans against property (28%), instant consumer loans (19.6%), business loans (12%), gold loans (2%), prime personal loans (8%), pre-owned car loans (9%), mid-market loans (15%), commercial vehicle loans (2%), and education, consumer durable, medical machinery, and equipment loans (1% each).

New product offerings contributed 14% to the AUM and accounted for 24% of the disbursements. These new products include prime personal loans, gold loans, consumer durable loans, commercial vehicle loans, education loans, and shopkeeper loans.