Poonawalla Fincorp Reports Strong Sales Amid Cash Flow Challenges and Market Resilience

Poonawalla Fincorp, a small-cap player in the Non-Banking Financial Company (NBFC) sector, has recently undergone a significant evaluation revision reflecting its strong financial performance for the quarter ending September 2025. The company reported record net sales of Rs 1,542.30 crore, alongside a peak PBDIT of Rs 758.70 crore. Profit Before Tax (PBT) less Other Income reached Rs 98.42 crore, while Profit After Tax (PAT) stood at Rs 74.20 crore, translating to an Earnings Per Share (EPS) of Rs 0.92.
However, not all metrics are favorable. The company recorded its lowest Operating Cash Flow for the year at Rs -10,569.43 crore, and both the Dividend Per Share (DPS) and Dividend Payout Ratio (DPR) were at zero, indicating challenges in cash generation and shareholder returns.

In terms of market performance, Poonawalla Fincorp has shown resilience compared to the Sensex. Over the past year, the stock has delivered a return of 39.39%, significantly outperforming the Sensex's 3.64% return. Year-to-date, the stock has surged by 67.26%, while over a five-year period, it has achieved an impressive return of 1494.55%, compared to the Sensex's 109.97%. This performance underscores the company's strong recovery trajectory in a competitive market landscape.