Poonawalla Fincorp shares in focus after Q4 profit plunges 81% YoY; NII rises 12%

Poonawalla Fincorp shares will be in focus on Monday after the company reported an 81% year-on-year (YoY) decline in net profit to Rs 62.33 crore for the March 2025 quarter, compared to Rs 332 crore a year ago. The steep drop was mainly due to a sharp rise in expenses, which more than doubled over the same period.

Despite the profit slump, the company delivered double-digit growth in its net interest income (NII) and assets under management (AUM).

Poonawalla Fincorp's NII for the January–March quarter rose 12% YoY and 6% quarter-on-quarter (QoQ) to Rs 715 crore, while AUM stood at Rs 35,631 crore at the end of the quarter, registering a 43% YoY and 15% QoQ increase.


Growth in AUM remained strong, with momentum across all products, according to a company filing to the exchanges.

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Expenses surged to Rs 1,093 crore from Rs 536.26 crore a year earlier, led by higher finance costs and impairment charges. However, the company improved its on-book mix to 57% from 54% sequentially, launched six new businesses, and saw a 27% QoQ reduction in credit costs. Sequentially, PAT also improved.

The Capital Adequacy Ratio (CAR) stood at 22.94% at the end of Q4FY25.

Pre-Provision Operating Profit (PPoP) rose 19% YoY and 11% QoQ to Rs 333 crore, while Gross NPA slightly improved by 1 basis point to 1.84%.

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For the full financial year, NII grew 23% YoY to Rs 2,708 crore and PPoP rose 2% YoY to Rs 1,417 crore, despite increased investments in new businesses and a higher secured asset mix. The liquidity buffer stood at Rs 4,686 crore as of March 31, 2025.

Commenting on the results, Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, said that with risk-first thinking and next-gen analytics, the company is reimagining customer assessment for more agile and sustainable profits.

Poonawalla Fincorp is a Cyrus Poonawalla group-promoted, non-deposit-taking non-banking finance company.

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