The company’s Net Interest Income (NII) grew 87.5% year-on-year to ₹1,196.8 crore from ₹638.3 crore. Including fees and other income, NII stood at ₹1,415 crore, up 10.9% quarter-on-quarter.
The company’s Assets Under Management (AUM) stood at ₹67,054 crore during the quarter. Profit after tax (PAT) increased 20.8% sequentially from ₹255 crore in Q4FY26 to ₹308 crore in Q1FY27.
Pre-Provision Operating Profit (PPoP) rose 12.9% quarter-on-quarter to ₹785 crore during the quarter ended June 30, 2026.
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The company’s Net Interest Margin (NIM) including fees and other income stood at 9.10% in Q1FY27, compared with 9.05% in Q4FY26, improving by 5 basis points sequentially. Return on Assets (RoA) improved to 1.98% in Q1FY27 from 1.81% in Q4FY26 and 0.68% in Q1FY26.
On asset quality, Gross Non-Performing Assets (GNPA) stood at 1.37% in Q1FY27, compared with 1.44% in Q4FY26. Net Non-Performing Assets (NNPA) declined to 0.70% from 0.74% sequentially.
The company’s credit cost as a percentage of average AUM stood at 2.40% in Q1FY27, compared with 2.51% in Q4FY26. Stage 1 assets accounted for 97.6% of on-book assets during the quarter, compared with 97.5% in the previous quarter.
The secured-to-unsecured on-book mix stood at 53:47. The company’s Capital Adequacy Ratio was at 19.46% as of June 30, 2026, with Tier-1 capital at 18.37%.
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Poonawalla Fincorp said its liquidity buffer stood at ₹4,012 crore as of June 30, 2026. The cost of borrowing was at 7.72% during the quarter, 9 basis points higher than Q4FY26.
The company added 25 new artificial intelligence (AI) projects during the quarter, taking the total number of AI projects to 101, of which 50 projects have been successfully implemented.
Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp, said, “This quarter marks another firm step in our journey toward sustained, predictable profitability. ROA has strengthened quarter-on-quarter, and asset quality has improved across products with both credit cost and GNPA moving favourably on an already solid base.
Our investments in new businesses are translating into strong traction, with every business we have launched now scaled to healthy levels. Disbursement yields are on a positive trajectory, reinforcing the strength of our model design for the future.
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Our AI brain has moved from build to execution and is beginning to deliver structural opex efficiency. Each of these vectors is improving structurally, not cyclically, underscoring the durability of our earnings trajectory. We are firmly on plan and confident of delivering predictable, sustained profit creation.”
Shares of Piramal Finance Ltd ended at ₹2,144.75, down by ₹40.00, or 1.83%, on the BSE.
