Poonawalla Fincorp Eyes Over 40% AUM Growth in FY26
ECONOMY & POLICY

Poonawalla Fincorp Eyes Over 40% AUM Growth in FY26

Poonawalla Fincorp, a leading financial services firm, is aiming to surpass 40 per cent growth in its asset under management (AUM) for FY26, driven by expansion into new product lines, including gold loans.
“We have issued AUM growth guidance of 35–40 per cent for this year. Given the strong traction of new product lines, we expect to exceed this target,” said Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp.
The company reported a 53 per cent year-on-year growth in AUM, reaching Rs 412.7 billion at the end of Q1 FY26. With 13 business verticals under its umbrella, Poonawalla Fincorp has adopted a phased growth approach—building AUM in the initial four quarters before focusing on sustained profitability.
Its product portfolio includes pre-owned car finance, personal and business loans, loans for professionals, loans against property and machinery, education loans, commercial vehicle finance, shopkeeper loans, gold loans, and consumer durable loans.
To fuel this growth, the company’s promoter is set to inject Rs 15 billion through a preferential issue of equity shares, a move already approved by the board. This capital infusion will increase the firm’s net worth to approximately Rs 100 billion. “This strategic capital will sustain high growth this year, and we may consider another equity raise in early FY27,” Kapil added.
The gold loan business, launched in April, already has 80 dedicated branches across Maharashtra, Gujarat, Rajasthan, and Haryana. Another 320 branches are planned over the next 7–8 months, taking the total to 400 by year-end. Other recently introduced segments—shopkeeper loans, consumer durable loans, commercial vehicle finance, and education loans—have also seen promising uptake.
In commercial vehicle loans, operations are underway across 27 locations in 10 states, with over 200 distribution partners onboarded. For education loans, the company plans to connect with over 500 education consultants by March 2026, supported by a dedicated sales force.
The company's cost of borrowing declined slightly to 8.04 per cent in Q1 FY26, compared to 8.07 per cent in Q4 FY25. Credit costs remain low at 1.43 per cent, and fundraising remains well diversified.
During Q1 FY26, Poonawalla Fincorp raised Rs 54.6 billion through non-convertible debentures (including subordinated debt), raising the share of NCDs in total borrowings from 7 per cent in March 2025 to around 24 per cent. The focus going forward will remain on strengthening secured lending operations.

Poonawalla Fincorp, a leading financial services firm, is aiming to surpass 40 per cent growth in its asset under management (AUM) for FY26, driven by expansion into new product lines, including gold loans.“We have issued AUM growth guidance of 35–40 per cent for this year. Given the strong traction of new product lines, we expect to exceed this target,” said Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp.The company reported a 53 per cent year-on-year growth in AUM, reaching Rs 412.7 billion at the end of Q1 FY26. With 13 business verticals under its umbrella, Poonawalla Fincorp has adopted a phased growth approach—building AUM in the initial four quarters before focusing on sustained profitability.Its product portfolio includes pre-owned car finance, personal and business loans, loans for professionals, loans against property and machinery, education loans, commercial vehicle finance, shopkeeper loans, gold loans, and consumer durable loans.To fuel this growth, the company’s promoter is set to inject Rs 15 billion through a preferential issue of equity shares, a move already approved by the board. This capital infusion will increase the firm’s net worth to approximately Rs 100 billion. “This strategic capital will sustain high growth this year, and we may consider another equity raise in early FY27,” Kapil added.The gold loan business, launched in April, already has 80 dedicated branches across Maharashtra, Gujarat, Rajasthan, and Haryana. Another 320 branches are planned over the next 7–8 months, taking the total to 400 by year-end. Other recently introduced segments—shopkeeper loans, consumer durable loans, commercial vehicle finance, and education loans—have also seen promising uptake.In commercial vehicle loans, operations are underway across 27 locations in 10 states, with over 200 distribution partners onboarded. For education loans, the company plans to connect with over 500 education consultants by March 2026, supported by a dedicated sales force.The company's cost of borrowing declined slightly to 8.04 per cent in Q1 FY26, compared to 8.07 per cent in Q4 FY25. Credit costs remain low at 1.43 per cent, and fundraising remains well diversified.During Q1 FY26, Poonawalla Fincorp raised Rs 54.6 billion through non-convertible debentures (including subordinated debt), raising the share of NCDs in total borrowings from 7 per cent in March 2025 to around 24 per cent. The focus going forward will remain on strengthening secured lending operations.

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