Poonawalla Fincorp Reports Jump in Q2 Profit as Brokerages Stay Divided on Stock

Poonawalla Fincorp shares are in focus after the non-banking financial company reported a nearly five-fold jump in consolidated profit for the second quarter of financial year 2027. Consolidated profit surged to ₹375 crore in Q2 FY27 from ₹74 crore in the year-ago quarter, supported by higher interest income, strong assets under management growth and better asset quality. Total income rose to ₹2,625 crore from ₹1,543 crore, while interest income increased to ₹2,416 crore from ₹1,402 crore. Assets under management reached ₹74,008 crore as of 30 September 2026. The capital adequacy ratio stood at 18.68%, which is above the regulatory requirement of 15%.

Brokerage Views

Analyst firms remain divided on the stock outlook despite the strong quarterly numbers. Motilal Oswal Financial Services reiterated a Buy rating with a target price of ₹570, pointing to margin expansion, lower credit costs and operating leverage. Emkay Global Financial Services maintained a Reduce rating with a target price of ₹410, keeping a cautious stance on the company's valuation even while acknowledging the operational improvements.

Context

Brokers often issue contrasting target prices and ratings for financial companies based on how they weigh current profit growth against future valuation risks. Non-banking financial companies rely heavily on borrowed funds and credit market conditions to expand their loan portfolios and manage asset quality over time.