Poonawalla Fincorp share price rises 6% despite sell-off in Indian stock market; here’s why

Poonawalla Fincorp share price jumped over 6% on Monday led by heavy buying momentum, despite broader weakness in the Indian stock market. Poonawalla Fincorp shares rallied as much as 6.59% to ₹440.75 apiece on the BSE.

Around 40 lakh equity shares of Poonawalla Fincorp changed hands on stock exchanges, significantly higher than their one week average trading volumes of 19 lakh shares.

The rally in Poonawalla Fincorp share price comes after the financial services company approved raising ₹1,500 crore from its promoter and aims for over 40% growth in its asset book, led by expansion in products portfolio including gold loans.

The board of directors of Poonawalla Fincorp, on July 25, approved raising of funds up to ₹1,500 crore from promoter Adar Poonawalla’s Rising Sun Holdings by issuing and allotting of 3.31 crore fully paid-up equity shares at an issue price of ₹452.51 per equity share by way of preferential allotment and private placement basis.

The equity infusion has increased Poonawalla Fincorp’s net worth to ₹9,700 crore.

“The said capital raise is a strategic move not only strengthens the company’s financial position but also reinforces the promoter’s confidence in the Company’s long-term potential. The Company is well positioned to continue its growth trajectory, deliver value to its stakeholders and achieve its ambitious objectives in the competitive NBFC landscape,”

Additionally, Poonawalla Fincorp is targeting above 40% 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% 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 Q1 Results

The non-deposit-taking NBFC, Poonawalla Fincorp, reported a net profit of ₹63 crore in the first quarter of FY26, a steep fall of 78.5% from ₹292 crore in the year-ago period, impacted by one-time expenses and prior provisioning. However, profit remained flat on a sequential basis.

The company’s net interest income (NII) in Q1FY26 increased to ₹639 crore from ₹576 crore, year-on-year (YoY).

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

In Q1FY26, the company had taken a one-time accelerated provision of ₹666 crore on the erstwhile STPL book, which also improved its provision coverage ratio (PCR) to 53.93%, up from 52.53% a year earlier.

“With credit cost significantly reducing on an overall basis by 53 bps QoQ, a risk-calibrated AUM increase of 15.8% QoQ, and ~Rs.1,500 cr capital infusion on preferential basis by the promoter, strengthens the company and supports its growth plans. Poonawalla Fincorp is well-poised for building a risk-first, sustainable, and profitable model,” said Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp.

Poonawalla Fincorp Share Price Performance

Poonawalla Fincorp share price has fallen 3% in one month, but the NBFC stock has rallied 14% in three months and 42% in six months. The stock is up 40% on a year-to-date (YTD) basis, while it has gained 16% in one year. Poonawalla Fincorp share price has delivered multibagger returns of 1607% over the past five years.

At 10:35 AM, Poonawalla Fincorp share price was trading 5.94% higher at ₹438.05 apiece on the BSE. 

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