Poonawalla Fincorp Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,624.50 Cr (+70.20% YoY) and PAT growth of +405.20% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 09, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 2,624.50 Cr (+70.20% YoY) |
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| PAT (Q2) | Rs. 374.85 Cr (+405.20% YoY) |
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| EBITDA margin | 32.30% (+918 bps YoY) |
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| EPS (Q2) | Rs. 4.27 (+349.50% YoY) |
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| Market cap | Rs. 39,423.95 Cr |
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| CMP | Rs. 448.00 |
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Quarter Snapshot
Poonawalla Fincorp posted record quarterly PAT of Rs.374.85 Cr (+21.8% QoQ, +405% YoY) on NII growth of +15.3% QoQ and cost-to-income improvement to 44.82% from 60.53% in Q1FY27. Loan book growth of +24.3% in H1FY27 annualizes to ~48%, ahead of management's 35-40% AUM growth guidance, while Gross Stage 3 improved to 1.20% — a seventh consecutive quarter of improvement. The flagged watch item is the provision coverage ratio at 49.17% versus ~53.93% a year ago.
Key Investment Insights
Key Positives
- PAT of Rs.374.85 Cr is the highest single-quarter PAT in the series, +21.8% QoQ and +405% YoY
- NII of Rs.1,380.09 Cr grew +15.3% QoQ and +80.5% YoY; NII as a share of revenue rose to 52.58% from 51.36% in Q1FY27
- PPoP of Rs.847.67 Cr grew +10.8% QoQ and +137.7% YoY; PPoP margin 32.30% vs 23.12% a year ago
- Cost-to-income improved to 44.82% from 60.53% in Q1FY27 and 57.28% in Q2FY26
- Loan book grew +24.3% in H1FY27 to Rs.69,562.71 Cr, an annualized run-rate of ~48% vs the 35-40% AUM growth guidance
- Gross Stage 3 improved to 1.20% (1.37% in Q1FY27, 1.59% in Q2FY26), the seventh consecutive quarter of improvement; Net Stage 3 at 0.61%
- Fees and commission income grew +30.6% QoQ and +102.5% YoY to Rs.207.47 Cr
- Net worth rose +32.9% since March 2026 to Rs.13,754.07 Cr, aided by the Rs.2,500 Cr QIP completed April 13, 2026 at Rs.370.75/share
Risk Factors
- Implied PCR narrowed to 49.17% from ~53.93% a year ago, reducing the cushion against slippages
- Other expenses rose +22.8% QoQ, outpacing revenue growth of +12.6% QoQ
- Net loss on derecognition of financial instruments of Rs.29.33 Cr vs a net gain of Rs.50.93 Cr in Q1FY27
- Debt-equity rose to 4.30x from ~3.8x in Q1FY27 on front-loaded borrowing to fund loan growth
- NCDs raised at 8.09-8.43% coupons, above the ~7.4% implied blended cost of funds in Q1FY27