Poonawalla Fincorp Limited (POONAWALLA) AI Stock Analysis

• Market Cap: ₹323.83B
• Dividend Yield: N/A
• Average Volume (3M): 338.05K
• Price to Earnings (P/E): 90.1
• Beta (1Y): 1.35
• Revenue Growth: 34.63%
• EPS Growth: -48.50%
• Country: IN
• Employees: 2,384
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.88
• 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): 6.76
• 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: ₹600.00
• Price Target Upside: 24.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹410.00 ▼(-14.67% Downside)

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

Lending-based revenue model

A core spread-based lending model generates recurring interest and fee income, which is a durable revenue engine for NBFCs. Over time, disciplined underwriting and funding mix can convert this model into stable cash generation and scalable margins if credit trends normalize.

Diversified loan product mix

Operating across retail and business lending reduces single-segment concentration risk and supports cross-selling. A mixed product portfolio helps stabilize origination volumes across economic cycles and provides multiple avenues for customer acquisition and fee income over the medium term.

Operational scale and origination capability

A sizable employee base signals distribution and servicing capacity required for large-scale loan origination and collections. Scale supports operational efficiencies, broader geographic reach, and product rollout capability that can underpin durable revenue growth and cost leverage once credit and funding stabilize.

Negative Factors

High leverage

A debt-to-equity above 3 materially raises refinancing and interest-rate sensitivity for a lending franchise. High leverage constrains financial flexibility, increases funding cost vulnerability, and magnifies downside from credit stress, limiting sustainable growth and capital allocation options.

Persistent negative cash flow

Sustained negative operating and free cash flows force reliance on external financing to fund lending and operations. This undermines liquidity resilience, elevates refinancing risk, and weakens the firm’s ability to self-fund growth or absorb loan losses over multiple quarters.

Deteriorating profitability and margins

A sharp revenue decline and margin compression reduce buffer against credit losses and raise break-even thresholds. Negative net income impairs retained earnings, limiting internal capital for growth or provisioning and making long-term recovery dependent on sustained improvement in margins and credit performance.

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: Negative
• MACD: Positive
• RSI: Positive
• 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 446.18, above the 50-day MA of 456.90, and above the 200-day MA of 448.46, indicating a bearish trend. The MACD of -17.24 indicates Positive momentum. The RSI at 28.14 is Positive, neither overbought nor oversold. The STOCH value of 9.68 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	₹338.52B	6.74	―	1.58%	6.84%	31.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IIFL	64 Neutral	₹225.07B	17.55	―	―	8.01%	-20.87%
POONAWALLA	56 Neutral	₹323.83B	90.13	―	―	34.63%	-48.50%
LICHSGFIN	55 Neutral	₹289.53B	5.21	―	1.87%	4.79%	13.08%
M&MFIN	52 Neutral	₹521.86B	21.22	―	2.83%	―	―
MANAPPURAM	49 Neutral	₹241.06B	61.55	―	0.80%	-3.68%	-80.12%

Poonawalla Fincorp Limited Corporate Events

Poonawalla Fincorp Publishes Q3 FY26 Earnings Call Transcript in Line with SEBI Norms

Poonawalla Fincorp Limited has released the transcript of its Q3 FY26 earnings and quarterly analysts’ conference call, held on January 16, 2026, discussing its unaudited financial results for the quarter ended December 31, 2025. The company has made the transcript publicly accessible via its website in compliance with SEBI’s Listing Regulations, underscoring its focus on regulatory adherence, transparency in financial communication, and ongoing engagement with market participants and stakeholders.

Poonawalla Fincorp Issues Revised Investor Presentation After AUM Chart Correction

Poonawalla Fincorp Limited has issued a revised investor presentation for the quarter and nine months ended December 31, 2025, correcting a year-labeling error in the assets under management chart, where data previously marked as 2026 has been clarified to represent 2025. The updated presentation, now available on the company’s website and shared with the stock exchanges, aims to ensure accurate disclosure for investors and analysts, reinforcing transparency around its financial performance and portfolio metrics in key lending segments such as gold, education, commercial vehicle, personal, shopkeeper and consumer durable loans.

Poonawalla Fincorp uploads Q3 FY26 earnings call recording to website

Poonawalla Fincorp Limited, a listed non-banking financial company providing financial services in India and trading on both BSE and NSE, operates under SEBI’s listing and disclosure regulations as part of the formal financial sector. The company has announced that the audio recording of its Q3 FY 2025-26 earnings conference call, held on January 16, 2026, has been uploaded to its website in compliance with SEBI’s disclosure and transparency requirements, enabling investors and other stakeholders to access management’s commentary and financial discussion for that quarter.

Poonawalla Fincorp Releases Q3 FY26 Investor Presentation Highlighting Diversified Retail Lending Focus

Poonawalla Fincorp Limited has released its investor and analyst presentation for the quarter and nine months ended December 31, 2025, in compliance with SEBI’s disclosure norms, and has made the material available on its website for stakeholders. The presentation, themed around sustainable, predictable and productive growth, highlights the company’s focus on a broad spectrum of retail lending products, underscoring its strategic positioning as a diversified lender and its ongoing engagement with investors and analysts on financial and operational performance.

Poonawalla Fincorp Sets January 16 Date for Q3 FY26 Results and Earnings Call

Poonawalla Fincorp Limited has scheduled the announcement of its financial results for the third quarter of FY 2025-26 on January 16, 2026, and will host an earnings conference call the same day at 5:00 p.m. IST for investors and analysts. The company has provided international and domestic dial-in options and will later publish a transcript of the call on its website, underscoring its ongoing efforts to maintain transparent communication with stakeholders and align with regulatory disclosure requirements.

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.