700% Net Profit Growth: NBFC stock jumps 6% after reporting strong Q3 FY26 results

Synopsis: Poonawalla Fincorp shares rallied 6% as its Q3 FY26 PAT registered a massive 700% jump on a YoY basis to touch Rs 150 crores, driven by its robust Net interest income, operating leverage, and its consumer & MSME NBFC operations.

The shares of this company, which is a non-deposit-taking NBFC registered with the RBI and is engaged in providing consumer and MSME financing, as well as general insurance services, had its shares in momentum today following the company reporting its Q3 results with robust performance. 

With the market cap of Rs 37,925 crore, the shares of Poonawalla Fincorp Ltd have gained about 6% and reached a high at Rs 492.50, compared to their previous day’s closing price of Rs 464. The shares are trading at a PE of 108, whereas its industry PE is at 21.5, and the shares have given a return of more than 950% over the last 5 years.

Q3 Result highlights

Poonawalla Fincorp Ltd had a strong and steady quarter on the revenue front. Net interest income came in at Rs 1,080 crore in Q3 FY26, up 60.6% YoY compared to Rs 672 crore YoY and 19.3% QoQ compared to Rs 905 crore, respectively. The more telling story is in profits. Net profit rose to Rs 150.22 crore, a sharp 702% YoY increase from Rs 18.73 crore and a 102% QoQ increase from Rs 74.2 crore. 

The increase in profit is fundamentally supported by the increase in the net interest income and not by any exceptional item, making the profit jump a legitimate improvement in the financial performance. 

Poonawalla Fincorp’s strong operating performance in Q3 FY26 was characterised by sharp balance sheet growth and improvement in profitability. The Assets Under Management rose 77.6% YoY to Rs 55,017 crore, driven by robust 60.6% YoY growth in NII, driven by increased dispensation and scale. The mix of secured to unsecured remains at an optimum level of 56:44, balancing risk management and high-yield businesses, already positioning the NBFC for continued growth in consumer and MSME lending.

Management Commentary

Mr Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, said, “Our results mark a strong step-up in performance, reflecting disciplined execution and the strengthening of our core franchise. Profit after tax doubled quarter-on-quarter, driven by a 36.5% sequential increase in pre-provision operating profit. Return on assets improved to 1.2%, while moderation in credit costs underscores improving asset quality and risk outcomes.

It is particularly encouraging to see our strategic investments delivering tangible gains across key financial metrics, reinforcing our confidence in the sustainability of this momentum.”

Poonawalla Fincorp Limited is a Cyrus Poonawalla Group-backed NBFC having a well-diversified business in the retail as well as the MSME segment. As a non-deposit-taking, systematically important finance company, the company’s business strategy is designed in a manner that aims at developing a balanced loan book covering consumer, business, and asset-backed categories of loans in due course of time. 

The company’s diversified product bouquet encompasses personal, educational, and commercial vehicles as well as supply chain and professional loans, which is an added diversification benefit, as it does not rely entirely on any particular segment of its business.

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