Poonawalla Fincorp Aims AUM Growth Upwards of 40% in FY26

Financial Services firm Poonawalla Fincorp is targeting above 40 per cent growth in its asset book on the back of expansion in products portfolio including gold loans.

"We have given Asset Under Management growth guidance of 35-40 per cent this year. We hope to exceed our target as new product lines are gaining good traction," Poonawalla Fincorp MD and CEO Arvind Kapil told PTI.

Poonawalla Fincorp registered a 53 per cent robust growth on annual basis in AUM at Rs 41,273 crore at the end of first quarter ended June 30, 2025.

"We have close to 13 businesses and there are two noteworthy items that we have and we gave a declaration that we will be building AUM for the first four quarters and we will look at a guidance of sustained business profits thereafter which is a little different than how NBFC's have normally built," he said.

The company's offerings include pre-owned car finance, personal loans, loans for professionals, business loans, loans against property, machinery loans, education loans, commercial vehicle loans, shopkeeper loans, gold loans, and consumer durable loans.

In a bid to grow the business, he said, the promoter will soon infuse Rs 1,500 crore via the issuance of equity shares on a preferential basis for which board approval is already in place.

"This strategic move underscores the promoter's continued confidence in the company's long-term growth trajectory and will further strengthen the capital base to support its business growth," he said, adding, a Rs 1,500 crore growth capital by promoter - among the largest in recent times - will push net worth of the company to approx Rs 10,000 crore.

The proposed capital infusion would sustain high growth for this financial year and the NBFC would look at another round of equity raise may be early next financial year, he said.

As far as the gold loan business is concerned, he said, it was launched in April and since then the company has opened 80 branches dedicated to this business across Gujarat, Haryana, Rajasthan and Maharashtra.

Another 320 branches would be opened in the span of 7-8 months to take total branches to 400 by year end, he added.

Other two businesses launched in April this year -- shopkeeper loan and consumer durable loan, while commercial vehicle loan and education loan introduced in March are also getting good response, he said.

In all, the Cyrus Poonawalla group promoted non-deposit taking systemically important non-banking finance company (ND-SI-NBFC) launched 5 products in 2025.

As regards commercial vehicle loan, he said the company has commenced business across 27 locations in 10 states and completed on-boarding of 200 plus distribution partners while on the education loan side there will be a network to over 500 education consultants by March 2026 apart from a dedicated sales team.

Talking about cost borrowing, he said, it has come down to 8.04 per cent during the first quarter as against 8.07 per cent in the March quarter. The credit cost is 1.43 per cent, among the best in the industry and fund raise is well diversified.

During Q1FY26, the Pune-based NBFC raised Rs 5,458 crore through NCD (including sub-debt) to increase the proportion of long-term borrowings.

This has increased NCD contribution to about 24 per cent of total borrowings against about 7 per cent as on March 2025.

As far as asset acquisitions are concerned, he said, the priority would be on the secured lending business.