Poonawalla Fincorp Q4 Results: Net Profit Falls 81%, Strong AUM and NII Growth Signal Future Potential
Business and Industry Overview:
Poonawalla Fincorp Limited is a major financial company in India. It was started in 1988 as Magma Leasing Limited and changed its name in 2021. The company is based in Pune, Maharashtra. It offers many financial products, like personal loans, business loans, home loans, and loans against property. It also offers loans for buying used cars and medical equipment, along with insurance.
The company focuses on helping both individuals and small businesses. It operates in 21 states with over 279 branches. Poonawalla Fincorp provides financial services to salaried people, professionals, and small businesses.
In FY24, the company earned ₹3,564 crore in revenue and ₹2,033 crore in profit. It has a strong financial position, with assets worth ₹28,283 crore and a total debt of ₹13,653 crore.
The company is led by Adar Poonawalla, the Chairman, and Arvind Kapil, the Managing Director & CEO. Poonawalla Fincorp aims to offer simple and helpful financial solutions to its customers, helping them achieve their financial goals.
Latest Stock News:
Poonawalla Fincorp Ltd. has faced a decline in its stock price. As of April 28, 2025, the stock is at ₹380.40, which is 4.19% lower than the previous day. The stock’s price has ranged between ₹267.20 and ₹507.80 over the past year. In its financial results for the January-March 2025 quarter, the company’s net profit dropped by 81% to ₹62.33 crore. This was mainly due to a large increase in operating costs. However, there were positive signs in other areas. The company’s net interest income (NII) grew by 12% to ₹715 crore, and its assets under management (AUM) rose by 43% to ₹35,631 crore. The pre-provision operating profit increased by 19% compared to last year. Despite these gains, analysts are concerned about the rising costs and credit expenses. Emkay Global Financial Services has kept a “Reduce” rating on the stock and set a target price of ₹280. While the company’s AUM growth and NII are strong, the profit drop and high expenses have made investors cautious. It is important to watch how the company manages its costs and asset quality in the future.
Segmental information:
- Retail Financing: This includes personal loans for salaried people, professionals, and government workers. It also offers home loans, loan against property, and loans for buying used cars. There are also special loans for professionals like Chartered Accountants, Company Secretaries, and doctors.
- Business Financing: Poonawalla Fincorp gives loans to small businesses (MSMEs) for working capital and growth. These loans can be both secured and unsecured.
- Loan Against Property (LAP): This segment gives loans by using property as security. The loan amount depends on the value of the property and the ability to repay.
- Vehicle Financing: The company offers loans to buy new and used vehicles, including cars and commercial vehicles.
- Medical Equipment Loans: This helps healthcare professionals and hospitals buy medical equipment.
- Insurance: Poonawalla Fincorp also provides insurance products, including life and health insurance.
Subsidiary information:
- Poonawalla Housing Finance Limited: This was a subsidiary of Poonawalla Fincorp. In December 2022, it was sold to a company called Perseus SG Pte Ltd for ₹3,900 crore.
- Magma HDI General Insurance Company Limited: Poonawalla Fincorp had a joint venture with HDI Global SE for general insurance. In 2022–23, Poonawalla Fincorp sold its stake to Sanoti Properties LLP, ending the joint venture.
- Rising Sun Holdings Private Limited (RSHPL): This is the main investment company of the Cyrus Poonawalla Group. RSHPL holds a 61.87% stake in Poonawalla Fincorp as of September 2024.
Q4 Highlights:
- Net Profit: ₹62.33 crore, down 81% from last year. This is because of higher expenses.
- Revenue: ₹1,166.27 crore, up 27% from last year.
- Net Interest Income (NII): ₹715 crore, up 12% from last year.
- Assets Under Management (AUM): ₹35,631 crore, up 42.5% from last year.
- Pre-Provision Operating Profit (PPoP): ₹333 crore, up 19% from last year.
- Gross Non-Performing Assets (NPA): 1.84%, which improved by a small amount.
- Capital Adequacy Ratio (CAR): 22.94%, showing strong financial health.
Financial Summary:
| Amount in ₹ Crore | Q4 FY24 | Q4 FY25 | FY24 | FY25 |
| Revenue | 915 | 1,166 | 5,418 | 4,190 |
| Expenses | 241 | 615 | 880 | 2,778 |
| EBITDA | 393 | 93 | 3,588 | -103 |
| OPM | 43% | 8% | 66% | -2% |
| Other Income | 7 | 7 | -1,363 | 33 |
| Net Profit | 332.00 | 62 | 1,683 | -98 |
| NPM | 36.28 | 5.32 | 31.06 | -2.34 |
| EPS | 4.28 | 0.8 | 21.73 | -1.26 |