Poonawalla Fincorp Ltd. makes a corporate announcement

As of the latest quarterly filing for Q2 FY27, quarter ended 30 September 2026, Poonawalla Fincorp reported:

Interpretation: asset quality improved materially year on year, with both GNPA and NNPA declining. PCR, however, was marginally below the corresponding Q2 FY26 level, although it remained broadly stable at around 49%. This means the reduction in reported NPAs was accompanied by a small decline in provisioning coverage rather than a further build-up in PCR.

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As of Q2 FY27 (quarter ended 30 September 2026), Poonawalla Fincorp’s NIM was 9.26%. The latest disclosed funding-cost measure was cost of borrowing at 7.76%; a separate figure explicitly labelled “weighted average cost of funds” was not reported.

Read-through: The quarter delivered the intended qualitative outcome: funding cost rose modestly by 4 bps, while NIM expanded by 16 bps. Management attributed the offset to improving disbursement yields, product mix and pricing power; it had cited a roughly 50 bps increase in disbursement yield in Q1 FY27 and said this should support future NIMs ^[5]. Q2 management commentary likewise linked higher total realizations to NIM and fee-income optimization ^[6].

The comparison with guidance remains directional rather than a formal beat/miss assessment. The company did not provide a numeric FY27 NIM or weighted-average cost-of-funds range in the cited disclosures. Therefore, 9.26% NIM and 7.76% cost of borrowing should be assessed against management’s qualitative guidance: modest funding-cost pressure, offset by yield and mix improvement. Also, 7.76% is cost of borrowing, not necessarily identical in definition to a weighted average cost of funds.

The latest Q2 FY27 investor presentation, for the quarter ended 30 September 2026, reports total AUM of Rs 74,008 Crores ^[7], but the cited presentation tables do not provide a consolidated Consumer Finance-versus-MSME AUM split or a single yield for each portfolio.

The presentation instead reports product-level AUM and ROI ranges—for example, Instant Consumer Loans at Rs 15,168 Crores, 20% of AUM, with 22–29% ROI ^[8], and Loan Against Property at Rs 20,013 Crores, 27% of AUM, with 9.75–12% ROI ^[8]. These product categories cannot be cleanly aggregated into Consumer Finance and MSME without the company’s segment mapping, and ROI ranges are not portfolio yields.

Therefore, the Consumer Finance/MSME AUM mix and yield differential are not determinable from the disclosed tables without introducing an unsupported classification or calculation.