From mint · Dhanya Nagasundaram · · 3m
Poonawalla Fincorp Shares Down 15% in a Year
Poonawalla Fincorp shares down 15% in a year, will strong Q2 results boost the stock?
In brief
Poonawalla Fincorp shares down 15% in a year, will strong Q2 results boost the stock? Poonawalla Fincorp's Q2 FY27 profit rose nearly five-fold year on year to ₹ 375 crore, but shares remain down 15.61% over the past year. Originally reported by mint.
Poonawalla Fincorp Q2 FY27 Profit
Poonawalla Fincorp’s Q2 FY27 profit rose nearly five-fold year on year to ₹ 375 crore, with AUM growth and improved asset quality supporting results.
Brokerage Ratings Divided
Brokerages remain divided: Motilal Oswal maintained a Buy rating and a ₹ 570 target, while Emkay retained a Reduce rating and a ₹ 410 target.
Q2 FY27 Financial Highlights
The NBFC's consolidated profit surged to ₹ 375 crore in Q2 FY27 from ₹ 74 crore in the year-ago quarter. Total income increased to ₹ 2,625 crore from ₹ 1,543 crore.
AUM Growth and Asset Quality
Poonawalla Fincorp's assets under management stood at ₹ 74,008 crore as of 30 September 2026. Its capital adequacy ratio was 18.68%, comfortably above the regulatory requirement of 15%.
Stock Performance Over Year
Despite the strong quarterly performance, the stock has struggled over the longer term.Poonawalla Fincorp shares closed 2.25% higher at ₹ 448.05 apiece on the BSE on Friday, but remained down 15.61% over the past year.
Motilal Oswal View
Motilal Oswal Financial Services reiterated its ‘Buy’ rating with a target price of ₹ 570, implying an upside of around 27% from the brokerage's cited market price of ₹ 447.
Emkay Global View
Emkay Global Financial Services maintained a ‘Reduce’ rating with a target of ₹ 410, implying downside from the stock's recent trading level.
Q2 Performance Drivers
The September-quarter performance was supported by expanding margins, lower credit costs and strong AUM growth, according to brokerage reports.
Motilal Oswal Margin Analysis
Motilal Oswal said Poonawalla Fincorp's Q2 FY27 profit after tax stood at around ₹ 375 crore, broadly in line with its estimates. Net interest income rose approximately 81% year-on-year to ₹ 1,380 crore.
Emkay Asset Quality Metrics
Emkay highlighted improving asset quality, with GNPA declining 17 basis points sequentially to 1.20%. Credit costs eased to around 2.19%.
Investor Outlook
The contrasting brokerage views underline the key question facing investors: whether Poonawalla Fincorp's strong growth and improving asset quality can translate into sustained returns for shareholders.
What Investors Should Watch
Going forward, investors will need to track AUM growth, lending yields, credit costs, asset quality and the pace at which technology and branch investments translate into operating efficiencies.
The short version
Poonawalla Fincorp's Q2 FY27 profit rose nearly five-fold year on year to ₹ 375 crore, but shares remain down 15.61% over the past year.
