Poonawalla Fincorp margin reaches 59.86% as profit rises 405.19% YoY
Revenue grew faster than expenses both YoY and QoQ, lifting operating margin another 1.52 percentage points sequentially.
Filed 09 Oct 2026, 16:26 IST · after market close · Poonawalla Fincorp Ltd (POONAWALLA)
Key takeaways
- Net profit rose +405.19% YoY as revenue grew +70.17%, while expenses increased at a slower +34.46%.
- Operating margin expanded 10.67 percentage points YoY to 59.86%, marking another sequential improvement.
- Other income contributed only 0.07% of pre-tax profit, so the quarter's earnings were not materially supported by non-operating income.
Price around the results
Revenue growth continued to outpace costs
In consolidated results, revenue increased +70.17% YoY and +12.31% QoQ, while expenses rose +34.46% and +8.21%, respectively. That cost discipline drove operating profit growth of +107.05% YoY and +15.23% QoQ. Net profit therefore rose +405.19% YoY and +21.82% QoQ.
Higher interest did not prevent margin expansion
Interest expense increased +62.34% YoY and +12.35% QoQ, but revenue growth was faster in both comparisons. Operating margin consequently widened 10.67 percentage points YoY and 1.52 percentage points QoQ. The tax rate moved only 0.25 percentage points YoY and 0.04 percentage points QoQ, while other income was just 0.07% of pre-tax profit.
Operating margin has risen in every quarter since Q2FY26
The margin has moved up from 49.19% in Q2FY26 to 52.96% in Q3FY26, 57.00% in Q4FY26, 58.34% in Q1FY27 and 59.86% in Q2FY27. This makes the current quarter part of a sustained multi-quarter improvement rather than a single-period change.
Presentation highlights a planned automated HR platform
The company said it is building a fully automated HR ecosystem aimed at a 'Zero-Click' employee experience. The presentation described this as an initiative to make employee and HR tasks more frictionless, rather than as a reported driver of this quarter's financial performance.
Results were filed after market close
The consolidated results were filed after market close, so there was no same-day market reaction in the reported data. After the last eight results, the stock rose on five occasions and fell on three, with a median absolute move of 2.11%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,625 cr | ₹2,337 cr | +12.31% | +70.17% |
| Other income | ₹0 cr | ₹0 cr | — | -27.66% |
| Expenses | ₹1,054 cr | ₹974 cr | +8.21% | +34.46% |
| Operating profit | ₹1,571 cr | ₹1,363 cr | +15.23% | +107.05% |
| Operating margin (%) | 59.86% | 58.34% | — | — |
| Interest | ₹1,035 cr | ₹922 cr | +12.35% | +62.34% |
| Depreciation | ₹35 cr | ₹30 cr | +13.49% | +53.54% |
| Profit before tax | ₹501 cr | ₹411 cr | +21.89% | +406.93% |
| Tax | ₹126 cr | ₹104 cr | +22.11% | +412.15% |
| Net profit | ₹375 cr | ₹308 cr | +21.82% | +405.19% |
| EPS (₹) | ₹4.27 | ₹3.55 | +20.28% | +349.47% |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New initiatives
- The company is building a fully automated HR ecosystem aimed at a Zero-Click employee experience.
What to watch
- Whether operating margin holds above 59.86%.
- Whether expenses continue to grow more slowly than revenue, after +8.21% QoQ versus revenue growth of +12.31%.
- Whether interest growth moderates from +12.35% QoQ.