Poonawalla Fincorp Limited (POONAWALLA) AI Stock Analysis

• Market Cap: ₹375.68B
• Dividend Yield: N/A
• Average Volume (3M): 338.05K
• Price to Earnings (P/E): 164.9
• Beta (1Y): 1.31
• Revenue Growth: 34.63%
• EPS Growth: -48.50%
• Country: IN
• Employees: 2,384
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.95
• Shares Outstanding: 812,629,100
• 10 Day Avg. Volume: 217,284
• 30 Day Avg. Volume: 338,053
• PEG Ratio: 2.60
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 6.65
• P/FCF Ratio: -2.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹517.00 ▲(7.60% Upside)

Poonawalla Fincorp Limited's overall stock score is primarily impacted by its financial challenges, including declining revenue and negative cash flows. While technical indicators show strong momentum, the stock appears overbought, and its valuation suggests potential overvaluation due to negative earnings.

Positive Factors

Revenue Growth

Despite recent challenges, the company has shown a strong revenue growth rate, indicating potential for market expansion and increased customer acquisition.

Technology Leverage

The company's emphasis on technology enhances operational efficiency, potentially reducing costs and improving customer experience, which can drive long-term growth.

Strategic Partnerships

Partnerships with financial institutions can expand the company's reach and customer base, providing a competitive edge and supporting sustainable revenue streams.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility. It can strain resources, especially if revenue growth does not offset the cost of debt.

Negative Cash Flows

Persistent negative cash flows indicate operational challenges and may necessitate external financing, impacting long-term financial health.

Declining Profitability

Decreasing profitability and negative margins suggest inefficiencies and competitive pressures, which could hinder future growth and investment capabilities.

Poonawalla Fincorp Limited Business Overview & Revenue Model

Company Description

Poonawalla Fincorp Limited, a non-banking financial company, provides asset finance services in India. It offers loans for CA, CS, doctors, salaried and government employees, home renovation, wedding, travel, and medical emergency; business loans for working capital, MSME, proprietorship, and women; cars, medical equipment, and home loans; loan against property; and auto leasing services. The company also provides insurance products. It operates a network of 242 branches. The company was formerly known as Magma Fincorp Limited and changed its name to Poonawalla Fincorp Limited in July 2021. Poonawalla Fincorp Limited was incorporated in 1978 and is based in Pune, India. Poonawalla Fincorp Limited is a subsidiary of Rising Sun Holdings Pvt Ltd.

How the Company Makes Money

Poonawalla Fincorp Limited generates revenue through interest income from its various lending products including personal loans, business loans, loans against property, and pre-owned car loans. The company charges interest on the principal amount borrowed by customers, which forms the primary source of its income. Additionally, Poonawalla Fincorp may earn revenue through processing fees, late payment charges, and other ancillary fees associated with its loan products. The company's strategic partnerships with various financial institutions and its focus on leveraging technology for efficient lending processes also contribute to its overall earnings by expanding its customer base and enhancing operational efficiency.

Poonawalla Fincorp Limited Financial Statement Overview

Summary

Poonawalla Fincorp Limited is facing financial difficulties with declining revenue, negative profitability, and high leverage. The company's cash flow position is particularly concerning, with sustained negative free cash flow, indicating a need for strategic adjustments.

Income Statement

The company shows fluctuating revenue with a recent downturn, as revenue decreased by 32% from the previous year. Gross and EBIT margins have declined, leading to a negative net income in the latest period. The negative net profit margin indicates challenges in maintaining profitability, despite a relatively stable EBITDA margin.

Balance Sheet

The balance sheet reflects high leverage, with a debt-to-equity ratio consistently above 3. The equity ratio improved slightly over time but remains low. Return on equity has turned negative recently, suggesting inefficiencies in generating returns on shareholder funds.

Cash Flow

The company faces significant cash flow challenges, with negative operating and free cash flows for the past three years. The free cash flow to net income ratio has been negative, indicating an inability to convert profits into cash flow effectively. Financing activities have been the primary source of cash inflow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.27B	40.00B	29.51B	18.72B	15.15B	22.29B
Gross Profit	20.04B	20.14B	17.04B	9.92B	7.05B	8.72B
EBITDA	-1.48B	-540.10M	22.18B	8.79B	5.14B	-5.89B
Net Income	-3.27B	-983.40M	16.83B	6.84B	3.75B	-5.59B
Balance Sheet
Total Assets	0.00	350.30B	240.87B	232.21B	164.43B	132.12B
Cash, Cash Equivalents and Short-Term Investments	0.00	14.42B	2.69B	13.99B	7.30B	8.77B
Total Debt	0.00	260.81B	152.16B	112.09B	99.73B	104.75B
Total Liabilities	-81.75B	268.55B	159.20B	163.47B	103.84B	110.18B
Stockholders Equity	81.75B	81.75B	81.67B	68.61B	60.56B	21.94B
Cash Flow
Free Cash Flow	0.00	-106.13B	13.42B	-53.18B	-31.12B	16.22B
Operating Cash Flow	0.00	-105.69B	-78.01B	-52.37B	-30.49B	16.44B
Investing Cash Flow	0.00	-4.82B	29.69B	-1.10B	1.43B	813.46M
Financing Cash Flow	0.00	108.21B	43.31B	57.48B	29.03B	-15.74B

Poonawalla Fincorp Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 480.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POONAWALLA, the sentiment is Negative. The current price of 480.5 is above the 20-day moving average (MA) of 465.93, above the 50-day MA of 467.05, and above the 200-day MA of 442.00, indicating a neutral trend. The MACD of 1.65 indicates Positive momentum. The RSI at 45.13 is Neutral, neither overbought nor oversold. The STOCH value of 13.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:POONAWALLA.

Poonawalla Fincorp Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CENTRALBK	78 Outperform	₹334.18B	7.16	―	1.58%	6.84%	31.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IIFL	66 Neutral	₹275.95B	32.13	―	―	8.01%	-20.87%
POONAWALLA	56 Neutral	₹375.68B	164.92	―	―	34.63%	-48.50%
LICHSGFIN	55 Neutral	₹290.60B	5.26	―	1.87%	4.79%	13.08%
M&MFIN	52 Neutral	₹484.63B	18.40	―	2.83%	―	―
MANAPPURAM	49 Neutral	₹241.40B	53.75	―	0.80%	-3.68%	-80.12%

Poonawalla Fincorp Limited Corporate Events

Poonawalla Fincorp Publishes Investor Education Notice Under ‘Saksham Niveshak’ Campaign

Poonawalla Fincorp Limited has published shareholder notices in The Financial Express and regional daily Loksatta as part of the “Saksham Niveshak” campaign mandated under a circular issued by the Investor Education and Protection Fund Authority (IEPFA) of the Ministry of Corporate Affairs. By formally notifying stock exchanges of these newspaper advertisements, the company underscores its compliance with regulatory investor-education initiatives and reinforces its engagement with shareholders through wider public communication channels.

Poonawalla Fincorp’s Credit Ratings Reaffirmed by CRISIL

Poonawalla Fincorp Limited has had its credit ratings reaffirmed and assigned by CRISIL Ratings Limited, with a ‘Crisil AAA/Stable’ rating for its long-term instruments and ‘Crisil A1+’ for short-term instruments. This announcement underscores the company’s strategic importance to its parent company, Rising Sun Holdings Private Limited, and highlights its strong capitalization, diversified product offerings, and competitive borrowing costs. The reaffirmation of ratings reflects the company’s robust market positioning and the expectation of continued support from its parent group.

Poonawalla Fincorp Strengthens Leadership Team with New Senior Management Appointments

Poonawalla Fincorp Limited has announced the designation of Mr. Manish Verma and Mr. Vadakke Madathil Maneesh Kumar as Senior Management Personnel, effective December 11, 2025. This organizational change reflects the company’s strategic focus on enhancing its leadership team to drive growth and operational excellence, potentially impacting its market positioning and stakeholder relations positively.

Poonawalla Fincorp Advances AI Integration with Full Adoption of Credit AI in Personal Loans

Poonawalla Fincorp Limited has successfully achieved full adoption of its Credit AI platform in the personal loans sector, significantly enhancing underwriting productivity. Originally launched in collaboration with IIT Bombay, this AI-driven initiative aims to streamline retail underwriting by reducing manual efforts and improving decision quality. Following its success, the company plans to extend Credit AI to other loan segments. Additionally, PFL has introduced four new AI tools to improve customer acquisition, risk management, HR support, and business analytics, marking a strategic shift towards integrating AI across various business functions to drive efficiency and informed decision-making.

Poonawalla Fincorp Expands Equity Through Employee Stock Options

Poonawalla Fincorp Limited has announced the allotment of 49,390 equity shares under its Employee Stock Option Schemes, as approved by the Nomination and Remuneration Committee. This move increases the company’s issued, subscribed, and paid-up equity share capital to Rs. 1,625,173,630, reflecting a strategic effort to enhance employee engagement and align interests with company growth.

Poonawalla Fincorp Schedules Key Investor Meet

Poonawalla Fincorp Limited has announced its schedule for an upcoming analyst and institutional investor meet, which will take place at the Kotak Securities Midcap Conference on November 21, 2025, in Mumbai. This event is significant for the company as it provides an opportunity to engage with key stakeholders and present its strategic initiatives, potentially impacting its market positioning and investor relations.

Poonawalla Fincorp Releases Q2 FY25-26 Earnings Call Transcript

Poonawalla Fincorp Limited has released the transcript of its earnings conference call for the second quarter of the fiscal year 2025-26. The call, held on October 17, 2025, discussed the company’s unaudited financial results for the quarter ending September 30, 2025. This disclosure is part of the company’s compliance with SEBI’s listing regulations, ensuring transparency and communication with stakeholders. The release of the transcript provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder relations.

Poonawalla Fincorp Advances AI Transformation with New Deployments

Poonawalla Fincorp Limited has announced the deployment of five new AI-powered solutions as part of its digital transformation strategy. These solutions, including an Early Warning System, Travel Bot, RegIntel, ER Governance Tool, and AI-driven Suspicious Transaction Reporting, aim to enhance risk management, compliance, and operational efficiency. By integrating AI into its core operations, the company is transitioning to predictive and prescriptive approaches, positioning itself as a digitally confident and governance-driven NBFC. This initiative is expected to improve agility, transparency, and future-readiness, potentially setting a new industry standard.

Poonawalla Fincorp Announces Financial Results and Compliance Updates

Poonawalla Fincorp Limited announced the approval of its unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025, following a board meeting. The company disclosed related party transactions and confirmed full utilization of funds from a preferential issue, indicating no deviation in their use. These disclosures align with SEBI regulations, ensuring transparency and compliance, potentially strengthening stakeholder confidence and the company’s market position.

Poonawalla Fincorp Updates Compliance Officer Details as per SEBI Regulations

Poonawalla Fincorp Limited has announced compliance with SEBI regulations by updating the details of its Company Secretary & Compliance Officer and Registrar and Share Transfer Agents as of September 30, 2025. This announcement ensures transparency and adherence to regulatory requirements, which is crucial for maintaining investor confidence and operational integrity.