Poonawalla Fincorp soars 11% on huge volumes, nears record high; here's why

Poonawalla Fincorp stock hit a 52-week high after company's board approved allotment of 33.15 mn equity shares at ₹452.51 each for ₹1,500 crore to its promoter Rising Sun Holdings Private Limited.

Share price of Poonawala Fincorp today

 

Shares of Poonawalla Fincorp, a Cyrus Poonawalla group company, hit a 52-week high of ₹494.75, as they rallied 11 per cent on the BSE in Thursday’s intra-day trade backed by heavy volumes after the company allotted equity shares worth of ₹1,500 crore to its promoter.

 

The stock price of the non-banking finance company (NBFC) surpassed its previous high of ₹483.35 touched on July 4, 2025. It was quoting close to its record high of ₹519.95 touched on January 19, 2024.

 

The average trading volumes at the counter jumped over five-fold, with a combined 9.24 million equity shares changing hands on the NSE and BSE till 09:40 AM.  READ STOCK MARKET UPDATES TODAY LIVE

 

Board approves allotment of ₹1,500 crore shares to promoter

 

The board of directors of Poonawalla Fincorp on Wednesday, September 17, 2025, approved the allotment of 33.15 million equity shares at an issue price of ₹452.51 per equity share (including premium of ₹450.51), aggregating to ₹1,500 crore to Rising Sun Holdings Private Limited, the promoter group of the company.

Poonawalla Fincorp Company outlook

 

Poonawalla Fincorp is a non-deposit taking systemically important non-banking finance company (ND-SI-NBFC), registered with the Reserve Bank of India (RBI). The company's assets under management (AUM) as of June 2025, stood at ₹41,273 crore. The company’s financial service offerings include Pre-Owned Car Finance, Digital PL, Prime Personal Loan, Loan for Professionals, Business Loan, Loans Against Property, Mid-market & NBFC Loan, Machinery & Medical Equipment Loan, Education Loan, Commercial Vehicle Loan, Shopkeeper Loan, Gold Loan, and Consumer Durable Loan.

 

The management expects a healthy AUM growth in the financial year 2025-26, which will likely be notches better, than the company’s guidance for this financial year of around 35 per cent-40 per cent.

 

However, during this quarter, Poonawala Fincorp witnessed a moderation of net interest margin which was anticipated as part of the company’s ongoing portfolio calibration, particularly with the erstwhile small ticket personal loan (STPL) book transitioning to lower yield coupled with lower contribution in the overall book.   

As the company actively scales up disbursements of the newly well-calibrated, high-quality book of STPL and other new products which the company has already kick-started and gradually reduce the share of the erstwhile STPL book, the management expects NIMs to be back at around 9 per cent within the next 3-4 quarters.

 

According to Motilal Oswal Financial Services (MOFSL), Poonawala Fincorp reported a healthy AUM and disbursements growth during the quarter, even as the earnings missed expectations due to higher credit costs, partially offset by lower-than-expected operating expenses. 

 

The brokerage firm believes that FY26 will be a crucial year for the company to demonstrate its ability to achieve guided loan growth while sustaining asset quality and keeping credit costs contained. MOFSL said they remain watchful and will closely monitor the on-ground execution of the company's stated strategy. The brokerage reiterates its 'Buy' rating on the stock with a target price of ₹520 (premised on 3.5x Mar’27E BVPS).