Archive · 11 Oct 2026
Poonawalla Fincorp Profit Jumps as Brokerages Split on Shares
Poonawalla Fincorp reported that its profit rose in the July-to-September quarter.
It earned ₹375 crore, compared with ₹74 crore in the same quarter a year earlier.
The company also said the amount of loans and other assets it manages reached ₹74,008 crore.
Some measures of its lending income and loan quality improved.
Two brokerages interpreted the results differently.
Motilal Oswal thinks the shares could rise and recommends buying, with a ₹570 target.
Emkay Global is more cautious and recommends reducing holdings, with a ₹410 target.
The disagreement reflects different views about the company's future growth and the price investors are paying for its shares.
Poonawalla Fincorp reported Q2 FY27 profit after tax of ₹375 crore, compared with ₹308 crore in Q1 and ₹74 crore a year earlier.
Assets under management reached ₹74,008 crore, up about 55% year-on-year, while net interest income including fees and other income rose 12.3% sequentially to ₹1,589 crore.
Return on assets improved to 2.18%, net interest margin including fees reached 9.26%, and gross and net NPAs were 1.20% and 0.61%.
Motilal Oswal reiterated its Buy rating with a ₹570 target, while Emkay Global retained Reduce with a ₹410 target, citing valuation concerns.
The shares rose 2.25% to ₹448.05 on Friday but were down 15.61% over the preceding year.
- Who
- Poonawalla Fincorp Limited; brokerages Motilal Oswal Financial Services and Emkay Global Financial Services.
- What
- The company reported Q2 FY27 results, and the two brokerages issued contrasting stock ratings and target prices.
- When
- The quarter ended September 30, 2026; results were announced October 9, 2026.
- Where
- Mumbai, India; the shares discussed were traded on the BSE.
- Why
- The results showed higher profit and improving asset-quality measures, while brokerages differed over the shares' growth prospects and valuation.
More optimistic view
More cautious view
Rating and target price
More optimistic view
Motilal Oswal reiterated Buy and set a ₹570 target, citing scope for earnings improvement.
More cautious view
Emkay Global retained Reduce and a ₹410 target, reflecting caution about the stock's valuation.
Growth and operating outlook
More optimistic view
Motilal Oswal expects stronger lending yields, a favourable product mix, lower credit costs and operating leverage to support returns.
More cautious view
Emkay acknowledged growth and improving asset quality but highlighted operating expenses relative to AUM rising to 4.15% amid ongoing investments.
- Q2 FY27 profit after tax
- ₹375 crore; ₹308 crore in Q1 FY27 and ₹74 crore in Q2 FY26
- Assets under management
- ₹74,008 crore as of September 30, 2026
- Net interest income
- ₹1,589 crore including fees and other income, up 12.3% quarter-on-quarter
- Asset quality
- GNPA was 1.20% and NNPA was 0.61% in Q2 FY27
- Capital adequacy
- 18.68%, including Tier-1 capital of 17.15%; the stated regulatory requirement was 15%
- Motilal Oswal view
- Buy rating; target price ₹570
- Emkay Global view
- Reduce rating; target price ₹410
- Share performance
- Closed at ₹448.05 on Friday, up 2.25% that day and down 15.61% over one year
