Intimation w.r.t Earnings call transcript

July 23, 2026 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department 25th The Listing Department, Floor, Phiroze Jeejeebhoy Towers, Dalal Exchange Plaza, Street, Fort, Bandra‐ Kurla Complex, Bandra Mumbai ‐ 400 001. (East), Mumbai ‐ 400 051. BSE Scrip Code: 524000 NSE Symbol: POONAWALLA Dear Sir / Madam, Subject: Transcript of Earning/quarterly conference call held to discuss Unaudited financial results for quarter ended June 30, 2026 – Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’). Reference: Regulation 46(2)(oa) of the SEBI Listing Regulations This is in continuation of our earlier letters dated July 08, 2026 and July 17, 2026 and pursuant to Regulation 30 and 46(2)(oa) of the SEBI Listing Regulations, we hereby providing the link of the transcript of Company’s Analysts (earning/quarterly) conference call for Q1 FY 2026-27 held on July 17, 2026. The transcript of the Conference Call can be accessed at:- https://poonawallafincorp.com/documents/20121/0/Q1FY27-Earnings-Call-Transcript.pdf/1c4f010c- ea80-b87f-7cd8-49e3bf199750 Kindly take the above intimation on record. Thanking You, Yours faithfully, For Poonawalla Fincorp Limited Shabnum Zaman Company Secretary ACS‐13918 Poonawalla Fincorp Limited Q1FY26-27 Earnings Conference Call July 17, 2026 MANAGEMENT: MR. ARVIND KAPIL – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER MR. SUNIL SAMDANI – EXECUTIVE DIRECTOR MR. SHRIRAM IYER – CHIEF CREDIT AND ANALYTICS OFFICER MR. SANJAY MIRANKA – CHIEF FINANCIAL OFFICER MR. HARSH KUMAR – HEAD OF ARTIFICIAL INTELLIGENCE AND CHIEF HUMAN RESOURCES OFFICER MS. SHABNUM ZAMAN – COMPANY SECRETARY Page 1 of 18 Poonawalla Fincorp Limited July 17, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Poonawalla Fincorp Limited Q1 FY26-27 Earnings Conference Call. We have with us today on the call Mr. Arvind Kapil - Managing Director and Chief Executive Officer, Mr. Sunil Samdani - Executive Director, Mr. Shriram Iyer - Chief Credit and Analytics Officer, Mr. Harsh Kumar - Head, Artificial Intelligence and CCHRO, and other senior management officials. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shabnum Zaman, Company Secretary of Poonawalla Fincorp Limited. Thank you, and over to you, ma'am. Shabnum Zaman: Thank you. In line with good corporate governance practices, please note this presentation may contain forward-looking statements regarding the company's future business prospects, strategies, estimates and profitability. But it is important to note that these statements are based on certain expectations, assumptions, anticipated developments and are subject to various risks and uncertainties. The actual results may differ significantly from what is stated in these forward- looking statements. Risks and uncertainties related to these statements include fluctuation in earnings, our ability to manage growth, competition, economic conditions in India and abroad, changes in law, rules and regulations relating to any aspect of the company's business operations, general economic, market and business conditions, attracting and retaining skilled professionals as well as government policies and actions. Now I would like to hand over to Mr. Arvind Kapil, Managing Director and Chief Executive Officer of the company. Arvind Kapil: Thank you, Shabnum. Good evening, everyone, and thank you for joining us. I hope you all are enjoying the thrilling Football World Cup and are looking forward to an exciting final. Before we get to our results, I thought it might be opportune to share with you and I think we all should draw some inspiration from this - an island nation called Cabo Verde. With just about 0.5 million people, it walked into first-ever World Cup appearance, walks into a tournament, holds Spain to a draw and fought back twice against defending champions, Argentina, an extra time and became the smallest country ever to reach a World Cup knockout round. They didn't have any star players on the pitch. What they had was preparedness, a game plan built for opponents twice their size, discipline, a defensive shape that never broke under pressure, agility, adjusting tactics match-after-match, and solid determination, twice coming from behind against the best teams in the world. Preparedness, discipline, agility and Page 2 of 18 Poonawalla Fincorp Limited July 17, 2026 determination, these are the qualities that inspire us, and I truly believe on behalf of my team that they are our DNA, and we strive to live by them every day. Now on to our quarter numbers and performance. • AUM at the end of Q1FY27 stands at ₹67,054 crores. This reflects a quarter-on-quarter growth of 11%. • The new products we've launched contributed to 26% disbursement in this quarter versus 24% in the previous quarter, i.e. Q4FY26, and 20% the quarter before. They have achieved sufficient traction and required scale to deliver predictable earnings in the future. As mentioned in my previous call, we believe growth isn't just about adding volume, It's about raising the margin per unit. As a result, we track 6 performance vectors very closely internally, and they continue to follow a sustainable upward trajectory firmly in line with our expectations and our internal plans. Let me begin. • Disbursement yield, which I believe is a key driver of our future NIMs, has expanded by approximately 50 basis points over Q4FY26. This has been primarily driven by our product mix, adding to the structural strength of our future construct. • Q1FY27 NIMs, a key indicator for us, holds ground at 9.10%, up from 9.05%. • Our credit cost has declined by 11 basis points quarter-on-quarter, from 2.51% to 2.4%. • Our GNPA, which in finance companies, we do believe is a lead indicator, the GNPA for Q1 FY27 stands at 1.37% versus 1.44% in Q4FY27. What gives me a lot of confidence is the quality of our incremental cohorts, which will have a downward bias on our future credit costs. • The 6 MoB 30+ of the most recent cohort is approximately 0.64%, which is 41 basis points lower than the previous quarter's origination, which we had shared, which is itself approximately 30 basis points lower than the previous one. • We continue to drive efficiency across the organization as well as benefit from operating leverage. Our opex to AUM has already declined year-on-year from 4.76% in Q4FY25 to 4.13% at the end of Q4FY26. We have achieved a further reduction of 7 basis points to 4.06% in Q1FY27. This is a function of improving digital share of our businesses, embedded AI into our processes and realization of operating leverage, most important. • As highlighted in my last earnings call, while the internal benchmark is close to FY27 at its lower opex to AUM ratios, you may see fluctuation quarter-on-quarter of 10 to 25 basis points based on our investment strategies and clustering of branch openings of the gold branches, which is generally an advice we will always like to park. As a result, we have achieved ₹308 crores in profit after tax, recording a 20.8% growth quarter-on-quarter, and a 391.5% growth year-on-year. • Our ROA, which I believe is an important metric, for us internally has moved up to 1.98%, reflecting a 17 basis point improvement over the previous quarter and 130 basis point improvement over Q1FY26. But more importantly, quarter-on-quarter, I think it's showing strength, and it's more structural in nature in my assessment. Page 3 of 18 Poonawalla Fincorp Limited July 17, 2026 Let me now give you a brief update on the key products, to give you a sense. Prime personal loan c [Showing first 8,000 characters — download PDF for full document]