Poonawalla Fincorp Q4 Net Profit Plunges 81% To ₹62 Crore Amid One-Time Expenses And Provisions

New Delhi: Poonawalla Fincorp on Friday reported a sharp over 81 per cent decline in its net profit, which fell to Rs 62.33 crore in the January-March quarter (Q4) of FY25, compared to Rs 331.70 crore in the same quarter of the previous financial year.

However, the company saw a rise in its revenue from operations, which grew over 27 per cent year-on-year (YoY) to reach Rs 1,166.27 crore.

The company’s net interest income (NII) also showed a positive growth of 12 per cent YoY, amounting to Rs 715 crore.

Additionally, its assets under management (AUM) saw a strong increase, rising by 42.5 per cent to Rs 35,631 crore.

CEO and MD Arvind Kapil highlighted that the company is focusing on smarter AI, sharper digital journeys, and risk-first thinking to ensure 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 stated.

However, Poonawalla Fincorp did not declare any dividend, according to its stock exchange filings.

The decline in profit was attributed to one-time operating expenses and accelerated provisioning on its erstwhile short-term personal loan (STPL) book, amounting to Rs 666 crore.

The company also mentioned its ongoing investments in new businesses as another factor affecting profitability.

In terms of asset quality, the firm saw a worsening trend, with a gross non-performing assets (NPA) margin of 1.84 per cent and a net NPA margin of 0.85 per cent.

Poonawalla Fincorp has also ventured into the gold loan business and plans to open 400 new branches in FY26 -- aiming for strong growth through cross-selling strategies.

Shares of Poonawalla Fincorp, which had closed 4 per cent lower at Rs 379.75 on Friday on the National Stock Exchange (NSE) ahead of the results, will be closely monitored when the market reopens on April 28.

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