Poonawalla Fincorp Limited (POONAWALLA) AI Stock Analysis

• Market Cap: ₹415.52B
• Dividend Yield: N/A
• Average Volume (3M): 338.05K
• Price to Earnings (P/E): 182.5
• Beta (1Y): 1.32
• 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: 779,208,600
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ₹517.00 ▲(7.11% 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.

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	40.67B	30.87B	19.96B	15.68B	23.52B
Gross Profit	20.04B	12.41B	17.04B	18.64B	14.70B	22.69B
EBITDA	11.87B	13.88B	8.36B	13.14B	9.14B	4.20B
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	6.57B	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: Neutral
• Last Price: 482.70
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 482.7 is below the 20-day moving average (MA) of 514.50, above the 50-day MA of 480.54, and above the 200-day MA of 401.38, indicating a neutral trend. The MACD of 0.66 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 11.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	―	₹353.64B	7.58	―	0.51%	6.84%	31.01%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IIFL	―	₹211.62B	65.29	―	―	2.65%	-81.55%
POONAWALLA	―	₹415.52B	182.47	―	―	34.63%	-48.50%
MANAPPURAM	―	₹236.96B	29.62	―	1.09%	4.83%	-64.41%
LICHSGFIN	―	₹315.46B	5.68	―	1.75%	4.79%	13.08%

Poonawalla Fincorp Limited Corporate Events

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.

Poonawalla Fincorp Allots ₹1,000 Crore in Non-Convertible Debentures

Poonawalla Fincorp Limited announced the allotment of 100,000 secured, redeemable, rated, listed non-convertible debentures, each with a face value of ₹1,00,000, totaling ₹1,000 crore, through a private placement. This strategic move, approved by the company’s Finance Committee, aims to strengthen the company’s financial position and enhance its market presence by listing these debentures on the BSE Limited’s Debt Market Segment. The debentures have a tenure of nearly three years with a 7.58% annual interest rate, and they are secured by a first-ranking pari passu charge on hypothecated properties, providing a robust security cover for investors.

Poonawalla Fincorp Advances Digital Transformation with AI Solutions

Poonawalla Fincorp Limited has announced the deployment of four AI-driven solutions as part of its digital transformation strategy. These solutions, which include an Agentic AI-powered Data Quality Index, an AI-powered Infrastructure Management Solution, a proprietary Fin-Bot for financial intelligence, and an AI-led Invoice Management System, aim to enhance operational efficiency, precision, and scalability. This move signifies the company’s commitment to integrating AI into its core operations, positioning itself as a digitally advanced and agile NBFC, and potentially improving decision-making, compliance, and financial workflows.

Poonawalla Fincorp Limited Successfully Concludes 45th AGM with All Resolutions Passed

Poonawalla Fincorp Limited successfully conducted its 45th Annual General Meeting (AGM) on July 29, 2025, through video conferencing. The meeting included electronic voting, where all proposed resolutions were passed with the required majority. The proceedings and voting results were submitted in compliance with SEBI regulations and are available on the company’s website.