Poonawalla Fincorp Limited (erstwhile Magma Fincorp Limited) is a non-deposit-taking NBFC registered with RBI. It is engaged in providing consumer and MSME financing, as well as General Insurance services. The company has transformed significantly over the past few years under the leadership of the Cyrus Poonawalla Group, establishing itself as a prominent player in India's financial services sector.
Poonawalla Fincorp Limited is an India-based non-banking finance company that focuses on consumer and micro, small, and medium enterprises (MSME) financing. The Company's financial services include pre-owned car finance, personal loans, loan to professionals, business loans, loan against property, supply chain finance, machinery loans, medical equipment loans, and consumer loans. The company operates through a comprehensive range of financial products designed to serve both individual consumers and businesses across various sectors.
Their consumer financing products include digital personal loans, pre-owned cars, auto leases, digital consumer finance, digital consumption loans, and co-branded credit cards. In the MSME financing segment, the company offers credit services to professionals, digital business loans, merchant cash advances, medical equipment loans, loans against property, machinery loans, and supply chain finance. Among the company's operational verticals, business loans have the highest share of total AUM at 28%, followed by pre-owned car loans at 17%, personal loans and loans against property at 16% each, and supply chain finance at 7%.
Poonawalla Fincorp operates as India's premium non-deposit-taking NBFC. The company caters to the financing needs of individuals and MSMEs through unsecured loans. Their array of products includes digital financing options, MSME loans, and end-to-end digital services for consumers. Poonawalla Fincorp operates across India through its agent network and 242 branches (as of 2022).
The company has embraced digital transformation through its innovative distribution model. Poonawalla Fincorp has adopted a Direct Digital Programme (DDP) distribution model. It has helped the company to provide quicker loan disbursements to its customers while reducing the customer acquisition cost. This strategic approach has enabled the company to maintain competitive advantages in a rapidly evolving financial services landscape.
Poonawalla Fincorp has a Market Capitalization of ₹36,808 Crore (up 10.2% in 1 year) as of the latest available data. The company has demonstrated a remarkable growth trajectory across multiple financial metrics. Q1 FY26: AUM grew 52.9% YoY to ₹41,250 Crore; liquidity ₹4,450 Crore; six new businesses launched.
Looking at recent performance, Poonawalla Fincorp Ltd reported a strong double-digit growth of 52% in its assets under management (AUM) for the quarter ended June 30, 2024, on a year-on-year (YoY) basis. As of June 30, 2024, the non-banking finance company's AUM stood at ₹26,970 Crore. The company's total disbursements grew by 5% in the June 2024 quarter to ₹7,400 Crore as compared to ₹7,063 Crore in the same period last year.
* AUM: ₹30,984 Crore
* NII (Net Interest Income): ₹672 Crore
* PPoP (Pre-Provisioning Operating Profit): ₹373 Crore
* GNPA (Gross Non-Performing Assets): 1.85%
* CRAR (Capital to Risk-weighted Assets Ratio): 25.85%
* Credit Rating: AAA/Stable
* Capital Adequacy Ratio was 31.57%, with Tier-1 at 30.09%, well above the regulatory requirement of 15%.
* Liquidity buffer stood at ₹5,192 Crore.
* Its Net Interest Margin (NIM) stood at 11.2% in Q1 FY25.
The company has maintained strong asset quality standards with impressive non-performing asset ratios. On the asset quality front, Poonawalla Fincorp's gross non-performing asset (GNPA) and net non-performing asset (NNPA) are projected to improve even more and reduce to lower than 1% and 0.5%, respectively. The company has received a 'AAA' CRISIL and CARE rating for its business operations and consumer services in financing and insurance.
As of September 2024, the Cyrus Poonawalla group holds a 61.87% stake in the company through Rising Sun Holdings Private Limited (RSHPL). RSHPL is the core investment company of the group, having investments in insurance, retail, pharma, and the financial services segment. RSHPL made an equity infusion of ₹3,206 Crore in the company in May 2021. Promoter holding in Poonawalla Fincorp Ltd has gone up to 62.53% as of March 2025 from 62.09% as of June 2024.
"At Poonawalla Fincorp, we uphold the rich legacy and strong ethos of trust, integrity, and excellence of the Poonawalla Group. We aspire to create a sustainable, predictable, and productive business for our stakeholders. Our Risk-first, Governance-first, Customer-first, and AI-first approach, led by an experienced management team, enables us to become the preferred financial partner for our customers."
The company has set ambitious growth targets and continues to expand its business offerings. Commenting on the results, Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp, said: "Our fundamental guiding philosophy for all businesses will be productivity, predictability and sustainability. We envisage achieving it through higher investments mainly in collections, technology and launch of new businesses."
CARE reaffirms Poonawalla Fincorp's AAA ratings; enhanced limits; strong promoter support; FY25 loss due to provisions. The company continues to focus on expanding its digital capabilities and has recently launched new business verticals to diversify its revenue streams.
Poonawalla Fincorp represents a compelling investment opportunity in India's growing NBFC sector, backed by strong promoter support, robust financial metrics, and a clear strategic vision for sustainable growth across consumer and MSME financing segments.
