1. Opening Hook
India’s inflation is at 1.33%, GDP is sprinting, and NBFC CEOs suddenly sound like macroeconomists. Coincidence? Probably not. 😏
While the rest of the market debates whether rate cuts are bullish or dangerous, Poonawalla Fincorp walked in with a simple flex: AUM up 78%, profits up 7x YoY, and ROA finally above 1%.
Management insists this isn’t reckless growth, but “designed compounding.” Credit costs are apparently just misunderstood weighted averages, not hidden landmines. AI is everywhere, gold loans are multiplying, and instant loans are being politely blamed for higher risk—without being kicked out of the party.
The tone of the call? Calm, confident, slightly smug.
The subtext? “We did the heavy lifting already—now watch operating leverage do the rest.”
Stick around. It gets more interesting once the math, mix, and masala come out.
2. At a Glance
- AUM up 77.6% YoY – Growth so fast it needs a seatbelt.
- Disbursements up 84% YoY – New products aren’t just launched, they’re sprinting.
- NIM at 8.62% – Higher yields, lower borrowing costs, CFO quietly smiling.
- GNPA at 1.51% – Asset quality behaving better than market expectations.
- ROA at 1.2% – Crossed the psychological barrier, fireworks internally.
- PAT ₹150 Cr (+702% YoY) – Base effect, sure—but also real operating leverage.
3. Management’s Key Commentary (Decoded)
“We are designing a high-quality, low-volatile credit portfolio.”
(Translation: Please stop comparing us to YOLO NBFCs.) 😏
“Growth is a means,
not the objective.”
(Translation: Yes, AUM is exploding—but we swear it’s intentional.)
“Credit cost is a weighted average, not a single product issue.”
(Translation: Don’t bully instant loans alone.)
“Gold loans, education loans, LAP will be 50–60% of the portfolio.”
(Translation: We’re slowly turning boring—and that’s profitable.)
“Disbursement yields are ~15.5%.”
(Translation: Pricing discipline > market share vanity.)
“Operating leverage is now structurally embedded.”
(Translation: Costs are done growing, revenues are not.)
“AI will resolve 80% of customer interactions autonomously.”
(Translation: Call center headcount is sweating.) 🤖
4. Numbers Decoded
Metric | Q3FY26 | What It Really Means
--------------------------|---------------|-----------------------
AUM | ₹55,017 Cr | Balance sheet on steroids
ROA | 1.2% | Finally crossed the holy line
GNPA | 1.51% | Improving despite hypergrowth
Credit Cost | 2.62% | Mix issue, not panic signal
Cost of Borrowing | 7.65% | NCD strategy actually working
Opex/AUM | 4.41% | Operating leverage peeking out
One-liner: High growth + falling costs
