Poonawalla Fincorp Reports 81% Drop in Q4 Profit to Rs 62 Crore
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Synopsis
Poonawalla Fincorp has reported a significant 81% decline in net profit for Q4 FY25, falling to Rs 62.33 crore, despite a 27% increase in revenue and positive growth in net interest income. The company is focusing on digital advancements and risk management while expanding its business portfolio.
Key Takeaways
- Net profit fell by 81% to Rs 62.33 crore.
- Revenue from operations increased by 27% YoY.
- Net interest income rose by 12% YoY.
- AUM grew by 42.5% to Rs 35,631 crore.
- Plans to open 400 new branches in FY26.
New Delhi, April 25 (NationPress) Poonawalla Fincorp announced a staggering 81% decrease in its net profit, which plummeted to Rs 62.33 crore during the January-March quarter (Q4) of FY25, compared to Rs 331.70 crore in the equivalent quarter of the previous fiscal year.
In contrast, the company experienced a notable increase in its revenue from operations, which surged by over 27% year-on-year (YoY), reaching Rs 1,166.27 crore.
The net interest income (NII) of the company also exhibited a positive growth of 12% YoY, totaling Rs 715 crore.
Moreover, assets under management (AUM) saw a robust rise, climbing by 42.5% to Rs 35,631 crore.
CEO and MD Arvind Kapil emphasized the company’s commitment to leveraging smarter AI, enhancing digital journeys, and adopting a risk-first approach to secure more agile and sustainable profits.
"Smarter AI. Sharper digital journeys. With risk-first thinking and next-gen analytics, we’re reimagining customer assessment for more agile and sustainable profits," he noted.
It is worth mentioning that Poonawalla Fincorp did not announce any dividend, according to its filings with the stock exchange.
The profit decline was attributed to one-time operating costs and expedited provisioning on its former short-term personal loan (STPL) portfolio, which accounted for Rs 666 crore.
Furthermore, the company pointed to its ongoing investments in new ventures as another factor impacting profitability.
Regarding asset quality, the firm reported a deteriorating trend, with a gross non-performing assets (NPA) ratio of 1.84% and a net NPA ratio of 0.85%.
Poonawalla Fincorp has also expanded into the gold loan sector and intends to establish 400 new branches in FY26, targeting robust growth through cross-selling initiatives.
Shares of Poonawalla Fincorp, which closed 4% lower at Rs 379.75 on Friday on the National Stock Exchange (NSE) prior to the results announcement, will be under close observation when the market reopens on April 28.
