Poonawalla Fincorp slides 4% post Q2; Anand Rathi retains 'Buy'; here's why

Poonawalla Fincorp share price today: Shares of Poonawalla Fincorp, a Mumbai-based non-banking finance company (NBFC), fell over 4 per cent on Monday, on the NSE, after the company reported its September 2025 quarter (Q2FY26) results. The stock touched an intra-day low of ₹503.25.

 

At 1:15 PM, Poonawalla was trading 3.3 per cent lower at ₹509 compared to the previous day's close of ₹526.4 on the NSE. In comparison, the NSE Nifty was trading higher by 0.73 per cent at 25,900. The stock has crashed around 12 per cent from its 52-week high of ₹570.4 touched on October 6, 2024. 

Poonawalla Fincorp Q2 results

Poonawalla Fincorp on Friday, October 17, reported a profit after tax (PAT) of ₹74.2 crore for the quarter that ended on September 30, 2025 (Q2FY26), against a loss of ₹471 crore in the year-ago period. Sequentially, the profit increased 18.5 per cent from ₹74.2 crore. The NBFC's net interest income (NII) rose by 40.3 per cent to ₹905 crore from ₹645 crore in Q2FY25. Sequentially, the NII grew 18 per cent to ₹768 crore.

 

The company maintained stable asset quality, with gross NPA (GNPA) declining to 1.59 per cent in Q2FY26 from 1.84 per cent in the previous quarter. Net NPA (NNPA) stood at 0.81 per cent compared with 0.85 per cent in Q1FY26. Stage 1 assets accounted for 97.1 per cent of on-book assets in Q2FY26, up from 96.5 per cent in Q1FY26. The provision coverage ratio (PCR) remained at 49.65 per cent. It reported assets under management (AUM) of ₹47,701 crore. 

Anand Rathi Research on Poonawalla Fincorp

According to analysts at Anand Rathi, Poonawalla Fincorp reported a strong Q2FY26 performance, with 39 per cent year-on-year (Y-o-Y) growth in pre-provision operating profit (PPoP) at ₹387 crore, supported by robust AUM growth of 68 per cent Y-o-Y (15.6 per cent Q-o-Q) and an improvement in net interest margin (NIM). A ₹1,500 crore capital infusion by the promoter is expected to further strengthen the NBFC’s growth outlook.

 

The brokerage believes Poonawalla Fincorp is well-positioned to deliver the fastest growth among peers, led by a strong management team, sharp risk control, and a solid tech-driven operating model. The company is projected to post a 46 per cent AUM CAGR over FY25–28, with return on assets (RoA) expected to improve to 2 per cent by FY27. Key risks to this outlook include higher slippages and loan growth falling short of expectations.

 

Despite trading at premium valuations, Anand Rathi has retained a ‘Buy’ rating, now valuing the stock at 4x Sep’27E P/BV (up from 3.9x earlier). It has set a 12-month target price of ₹622.