Poonawalla Fin Q1 FY27 Results (NSE: POONAWALLA)
Signal: Earnings grew
The read
Q1FY27 marks the fifth consecutive quarter of rising profits after the H1FY25 impairment-driven loss. Revenue surged 77% YoY to ₹2,330 Cr, while operating costs (employees + other expenses) grew only 42% — producing a 1,126bps YoY expansion in PBT margin to 17.6%. Impairment as % of revenue improved 336bps YoY. The QIP dilution (67.4 Cr shares) caused EPS growth (+338%) to lag PAT growth (+391%), a one-time effect that will annualize in future quarters. The trajectory is clearly positive: revenue, margin, and absolute profit are all accelerating.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,330.22 Cr | 77.33% | 10.15% |
| EBIT | ₹411.26 Cr | 392.91% | |
| Net profit | ₹307.71 Cr | 391.42% | |
| EPS | ₹3.55 | 338.27% | |
| EBIT margin | 0% |
P&L walk
Interest income grew 79% YoY to ₹2,118 Cr, driving revenue from operations +77% YoY to ₹2,330 Cr. Finance costs rose 69% YoY but slower than revenue, while employee expenses grew only 38% YoY — operating leverage evident. Impairment stepped up 47% YoY but lower as % of revenue. PAT surged 391% YoY to ₹308 Cr, the fifth consecutive quarter of profit growth after the deep Q2FY25 loss.
Key positives
- Revenue from operations ₹2,330 Cr, +77.3% YoY — fastest growth in 5 quarters, driven by interest income (+78.7% YoY) and fees/commission (+152.8% YoY).
- PBT margin expanded 1,126bps YoY to 17.6% — fixed costs (employee + other expenses) grew 42% vs revenue growth 77%, clear operating leverage.
- PAT ₹307.7 Cr, +391% YoY — fifth consecutive quarter of profit growth after the Q2FY25 impairment loss of ₹471 Cr.
- Credit cost (impairment / revenue) improved to 15.2% from 18.4% a year ago — 336bps YoY reduction despite absolute impairment rising 47%.
Key concerns
- EPS growth (+338%) lags PAT growth (+391%) due to dilution from the 67.4 Cr share QIP — existing holders' per-share earnings growth partly diluted.
- Net gain on derecognition of financial instruments declined 34.6% QoQ and 18.8% YoY — a volatile income line contributing 2.2% of revenue vs 4.8% a year ago.
- Impairment on financial instruments rose 46.7% YoY in absolute terms — while improving as % of revenue, growth in ECL provisions needs monitoring against AUM growth.
Research and educational content only. Not investment advice.