Poonawalla Fincorp shares rise 7% as board approves ₹1,500 crore fundraise

Poonawalla Fincorp share price today: Shares of non-banking financial company (NBFC), Poonawalla Fincorp, surged 7 per cent on Monday, July 28, 2025, hitting an intraday high of ₹444.90.

 

At 02:00 PM, shares of Poonawalla Fincorp were trading at ₹426.50, up by 3.19 per cent on the National Stock Exchange. In comparison, Nifty50 struggled to trade in green territory and was trading at 24,676.55 level, down by 160 points or 0.65 per cent. The total market capitalisation of the company stood at ₹33,217.01 crore. At the time of writing this report, around 11 million shares had changed hands on the counter, cumulatively, on the NSE and BSE.

 

Why Poonawalla Fincorp shares were trading higher?

The uptrend in share price came after the board of the company approved a fundraise of around ₹1,500 crore. As per the regulatory filing, the Poonawalla Fincorp will be raising funds from its promoter entity, Rising Sun Holdings Pvt. Ltd., via a preferential allotment of 3.31 crore equity shares at an issue price of ₹452.5.

 

"The capital raise not only strengthens the company's financial position but also reinforces the promoter’s confidence in the company's long-term potential. The company is well-positioned to continue its growth trajectory, deliver value to its stakeholders and achieve its ambitious objectives in the competitive NBFC landscape," the company said in its exchange filing, dated June 25, 2025.

 

Meanwhile, the board has also approved raising the limit of funds via issuance of non-convertible debt securities on a private placement basis during FY26 to ₹20,000 crore from ₹10,000 crore earlier. 

Poonawalla Fincorp Q1FY26 earnings

The company reported a sharp fall in its net profits during the quarter ended June 30, 2025, to ₹62.6 crore, down by 78.7 per cent from ₹291.64 crore in the corresponding quarter of the previous fiscal year. Revenue from operations figure stood at ₹1,313.97 crore in Q1FY26 as against ₹977.59 crore recorded during the first quarter of FY25. Net interest income (NII) for the quarter under review stood at ₹639 crore from ₹576 crore reported in the year-ago period.

 

The management maintained its growth guidance of 35-40 per cent with net interest margins (NIM) hitting 9 per cent in the next 3-4 quarters.  Post Q1 earnings, Emkay Global reiterated a 'reduce' rating on the stock, with an unchanged target price of ₹310. "Given the (company's) high opex and the unseasoned book, asset quality and profitability still hinge on trust in management...factoring in the Q1 performance, we tweak our FY26-28 estimates, resulting in a 5 per cent/2 per cent cut in FY26E/27E earnings per share (EPS)," the brokerage firm stated in its report.