Poonawalla Fincorp shares slip over 8 pc in month, Q1 profit declines 78 pc to Rs 62 cr

Mumbai, July 31 The shares of Poonawalla Fincorp, a Non-Banking Financial Company (NBFC), fell by over 8 per cent in the last 30 days on the BSE. Currently, the stock is down over 11 per cent from its 52-week high of Rs 483.35 per share.

Meanwhile, the NBFC reported a 78.4 per cent decline in its net profit at Rs 62.60 crore in the first quarter of the current financial year (Q1 FY26), on higher expenditure.

The company had posted a net profit of Rs 291.64 crore in the June quarter of Fiscal 2025.

The total expenses for the quarter under review rose 50 per cent to Rs 1,230.57 crore as compared to Rs 606.21 crore in the same quarter a year ago.

The impairment on financial instruments increased almost six times year-on-year (YoY) to Rs 241.08 crore from Rs 42.49 crore, which was a major factor in the decline in profit. The employees' benefit expenses also doubled to Rs 213 crore as compared to Rs 102 crore in Q1 FY25.

Poonawalla Fincorp's net margin for the quarter declined to 4.76 per cent, down from 29.3 per cent a year ago.

However, the company said that its total income rose to Rs 1,314 crore in the quarter from Rs 996 crore a year ago. Net Interest Income (NII) at the NBFC increased 11 per cent YoY, from Rs 576 crore in Q1 FY25 to Rs 639 crore.

Earlier, the NBFC announced the deployment of four AI-led solutions, comprising one Agentic AI solution and three AI-powered systems, as part of its enterprise-wide digital transformation journey.

"These include an Agentic AI-powered Data Quality Index (DQI), an Infrastructure Management Solution, a proprietary Fin-Bot for financial intelligence, and an AI-led Invoice Management System, all aimed at enhancing speed, precision, and scalability across key business functions," the company said.

The company shares closed at Rs 426.40 on Thursday, up 3.08 per cent on BSE.

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