Poonawalla Fincorp, a leading non-banking financial company (NBFC) promoted by the Cyrus Poonawalla group, reported mixed financial results for the fourth quarter of FY25. While the company witnessed strong growth in its Assets Under Management (AUM) and revenue, its bottom line took a significant hit.

Key Financial Highlights

• Net profit plunged 81% YoY to Rs 62.33 crore in Q4FY25 from Rs 331.70 crore in Q4FY24

• Revenue from operations grew 27% YoY to Rs 1,166.27 crore

• AUM surged 42.5% YoY to ₹35,631 crore

• Net Interest Income (including fees) rose 12% YoY to ₹715 crore in Q4

• Stable asset quality with Gross NPA at 1.84% and Net NPA at 0.85%

Business Growth & Expansion

The company has been aggressively expanding its product portfolio and digital capabilities:

• Launched 6 new businesses, including PL Prime Digital 24x7, Education Loans, and Gold Loans

• AI-driven transformation with 25 AI solutions identified (7 completed, 18 underway)

• Phygital expansion plan to open 400 new branches while strengthening digital channels

• AUM mix diversification: MSME (36%), Personal & Consumer Finance (23%), Loan Against Property (24%), Pre-owned Car Loans (14%)

Management Commentary

Mr. Arvind Kapil, MD & CEO, emphasized the company's digital-first approach:
"Smarter AI. Sharper digital journeys. With risk-first thinking and next-gen analytics, we're reimagining customer assessment for more agile and sustainable profits."

Capital & Liquidity Position

• Capital Adequacy Ratio at 22.94% (well above the 15% regulatory requirement)

• Liquidity buffer of ₹4,686 crore as of March 31, 2025

• No dividend declared as the company focuses on capital conservation for future growth

Outlook for FY26-27

Poonawalla Fincorp aims to:

• Scale AUM further in FY26

• Achieve sustainable profitability in FY26-27

• Strengthen its secured lending portfolio (current mix: 57% secured vs. 43% unsecured)

Final Takeaway

While the short-term profitability has been impacted due to investments in new businesses and digital transformation, Poonawalla Fincorp is positioning itself for long-term growth with a strong AUM base, diversified product portfolio, and AI-driven lending solutions.

The Upcoming IPOs in this week and coming weeks are Ather Energy, Iware Supplychain Services, Arunaya Organics,Kenrik Industries.

The Closed IPO are Tankup Engineers.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.