Poonawalla Fincorp’s Q4 Net Profit Falls 81%, Hits Rs 62 Crore

Poonawalla Fincorp, a key player in India's non-banking financial sector, has reported a staggering 81% drop in its net profit for the fourth quarter of FY2025, with earnings falling to just Rs 62 crore. This sharp decline highlights the mounting pressures on the company amid a challenging financial landscape.

The company claimed that the decline is largely due to an increase in provisions for bad loans, weaker demand in key industries, and rising operational costs. Last year, the company had posted a far net profit of Rs 327 crore in the same quarter, underlining the extent of the financial strain it faced over the past year.

Also Read: Poonawalla Fincorp records highest ever quarterly PAT of Rs 265 crore in Q3FY24, surges 76% YoY | Republic World

Despite the profit slump, the company saw a slight rise in revenue, which increased to Rs 1,500 crore, compared to Rs 1,470 crore in the previous year. However, this revenue growth was not enough to offset the sharp fall in profits, reflecting the broader difficulties facing the sector.

While commenting on the firm's results, Poonawalla Fincorp CEO and MD Arvind Kapil said, "Smarter AI. Sharper digital journeys. With risk-first thinking and next-gen analytics, we’re reimagining customer assessment for a more agile and sustainable profits."

Following the announcement, the company’s stock saw an immediate 10% drop, as market sentiment grew cautious in response to the weaker-than-expected results. This has raised concerns about the company’s ability to regain momentum in the near term.

Poonawalla Fincorp Limited is a Cyrus Poonawalla group Non-Banking Finance Company (NBFC) that focuses on consumer and MSME financing. We offer a diversified product suite to address the growing financing needs of our customers and enterprises. We stand for Passion, People, Purpose, Principles and Possibilities.  The company had recently ventured into gold loan business. The company said it aims to launch 400 branches in the ongoing FY26 with a very strong cross-sell machine.