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We do not publish one number for Poonawalla Fincorp — and here is why.
On today's figures the market pays roughly 5.9 times what our model says Poonawalla Fincorp is worth. On a company this widely followed, a gap that large almost always means our model is missing something rather than that thousands of investors are wrong. So we show the workings and say plainly that we cannot stand behind a single figure here.
- How it is valued: no single figure is published here — our model and the market disagree too far.
- What the price assumes: 33.4% return on equity, against 8.6% the model takes from its own record.
- Ten-year record: Between FY2020 and FY2026, Poonawalla Fincorp's revenue went from ₹2,513 crore to ₹6,790 crore — it compounded at about 18% a year over 6 years.
- Biggest swing factor: Loan growth. Main risk: Unsecured stress.
01From Magma Fincorp
Poonawalla Fincorp, controlled by Adar Poonawalla's Rising Sun Holdings, was formerly Magma Fincorp, which it bought in 2021. It lends to consumers and small businesses — personal, business, loan-against-property and vehicle loans.
It sold its housing-finance subsidiary to TPG in 2023 and has since focused on unsecured and secured retail lending using digital processes.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the return on equity that price implies for Poonawalla Fincorp, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Poonawalla Fincorp's record, in plain numbers
Between FY2020 and FY2026, Poonawalla Fincorp's revenue went from ₹2,513 crore to ₹6,790 crore — it compounded at about 18% a year over 6 years. It reported a net loss in FY2021 and FY2025, and closed the period with net profit of ₹542 crore. In FY2026 it kept 8.0% of revenue as net profit — against a low of -24.1% in FY2021 and a high of 54.1% in FY2024. The latest year added 62.1% to revenue, well ahead of its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2020 | 2,513 | 27 | 1.1% |
| FY2021 | 2,319 | -559 | -24.1% |
| FY2022 | 2,004 | 375 | 18.7% |
| FY2023 | 1,939 | 685 | 35.3% |
| FY2024 | 3,109 | 1,683 | 54.1% |
| FY2025 | 4,190 | -98 | -2.3% |
| FY2026 | 6,790 | 542 | 8.0% |
04How Poonawalla Fincorp gets valued — and why
Estimate withheld — model and market disagree too farOur model and the market disagree so far apart on this company that the model is the more likely one to be wrong. Rather than publish a number we cannot stand behind, we show the workings and say so.
05What decides Poonawalla Fincorp's value
Loan growth
Rapid book growth drives earnings.
Credit costs
Unsecured loans carry higher defaults.
Funding costs
Its group backing helps borrowing.
Technology
Digital underwriting keeps costs low.
06What could go wrong
- Unsecured stress. Personal loans can sour quickly.
- Execution. Fast growth tests risk controls.
- Regulation. Rules on unsecured lending.
07What the full Poonawalla Fincorp valuation shows
Sign in free to see the complete Poonawalla Fincorp valuation
- ✓The full model workings — and exactly where the model and the market part ways
- ✓Every assumption — growth, returns and cost of capital, with sources
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against Bajaj Finance, L&T Finance and other lenders
- ✓Downloadable report — the full write-up, yours to keep
08Questions people ask about Poonawalla Fincorp
Was Poonawalla Fincorp called Magma Fincorp?
Yes; Adar Poonawalla's group bought Magma in 2021 and renamed it.
What did Poonawalla sell to TPG?
Its housing-finance subsidiary, in 2023.
Who controls Poonawalla Fincorp?
Adar Poonawalla, through Rising Sun Holdings.
Is Poonawalla Fincorp overvalued?
At ₹485 the market is pricing in roughly 33.4% sustained ROE, against the ~8.6% its own record supports. That is more than it has delivered, so the price is justified only if the business can hold a rate it has not previously sustained.
What is the intrinsic value of Poonawalla Fincorp?
This business is a group of operations with different economics, so a single blended figure would describe none of them. The parts are valued separately and the breakdown is in the report, rather than one number that cannot be defended.
How much debt does Poonawalla Fincorp carry?
Debt to equity stands at 3.23, down from 3.87 at the start of the period — the balance sheet is a core input to the cost of capital used here.