186% rise in 5 years! Poonawalla Fincorp share price jumps 7% on strong Q2 results 2026 | Should you buy, sell or hold?
Poonawalla Fincorp share price jumped over 7% in during the intraday session on Monday after the company reported strong financial results for the quarter ending on 30 September, 2026.
Poonawalla Fincorp shares opened at ₹476.90 per share on NSE today, as compared to previous close of ₹447.30 on Friday last week and touched an intraday high of ₹484 on 12 October.
Poonawalla Fincorp reported a 406.8% year-on-year (YoY) jump in profit after tax (PAT) to ₹375 crore in Q2FY27, compared with ₹74 crore in the corresponding quarter last year.
The non-banking financial company’s (NBFC) net interest income (NII) surged 80.6% YoY to ₹1,380 crore from ₹764 crore in Q2FY26, according to its exchange filing. Total interest income rose 72.3% to ₹2,416 crore during the quarter, against ₹1,402 crore a year earlier. Meanwhile, interest expenses increased 62.2% YoY to ₹1,035 crore from ₹638 crore in the year-ago period.
Poonawalla Fincorp also reported an improvement in asset quality, with gross non-performing assets (GNPA) declining by 17 basis points (bps) quarter-on-quarter (QoQ) and 39 bps year-on-year. The company said it did not undertake any accelerated write-offs during the quarter.
The NBFC expanded its gold loan distribution network to 550 branches, with sourcing supported by direct selling agents (DSAs), digital platforms, tele-calling and its in-house sales team. It also highlighted a sustained improvement in return on assets (RoA), attributing the progress to greater operational efficiency and improved capital allocation.
“We have delivered disciplined AUM expansion while enriching total realizations via NIM and fee income optimization, demonstrating strong pricing power across core and newly incubated verticals. Concurrently, continuous asset quality refinement has driven credit costs lower from an already formidable baseline, translating directly into a structural lift in our Return on Assets (RoA). Accelerated by our rapidly maturing proprietary AI layer, these foundational, cross-vector gains reinforce the compounding power and long-term sustainability of our franchise,” said Arvind Kapil, managing director and chief executive officer of Poonawalla Fincorp.
Poonawalla Fincorp shares have gained momentum in the near term, rising 2.98% over the past week and 4.53% over the past month.
However, the stock has remained under pressure by declining 3.68% year-to-date (YTD) and is down 12.05% over the past year.
Over the longer term, the stock has delivered positive returns, gaining 24.12% over three years and surging 186% over five years.
Brokerage firm Motilal Oswal has reiterated ‘buy’ rating on the Poonawalla Fincorp stock, with a target price of ₹570 per share, saying that the company has delivered a healthy quarter, supported by sustained business momentum and improving asset quality.
“We believe PFL’s diversified product portfolio positions it well to deliver strong AUM growth. This, along with improving yields, further credit cost moderation, and operating leverage, is expected to drive sustained RoA expansion. We model ~44% AUM CAGR and ~120% PAT CAGR over FY26-FY28E, and expect PFL to deliver RoA/RoE of 2.4%/~17% in FY28,” the firm said.
Meanwhile, brokerage firm Emkay Research has maintained its ‘reduce’ rating on the stock, seeing a downside of 8.3%.
“The management reiterated its focus on calibrated growth, with profitability expected to improve, led by strong pricing power and higher disbursement yields. The management expects potential fee caps from proposed insurance commission regulations to be comfortably absorbed via core lending spreads and cross-sell expansion. We retain REDUCE and Sep-27E TP of Rs410, implying FY28E PBV of 1.8x,” it said.
On the technical outlook, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, said that the numbers look good, and the stock can be considered for buying with a stop-loss at ₹418.
“From a medium- to long-term perspective, the stock could target ₹485, followed by ₹520 and ₹550 or higher,” Ojha added.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock Markets186% rise in 5 years! Poonawalla Fincorp share price jumps 7% on strong Q2 results 2026 | Should you buy, sell or hold?
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