Motilal Oswal Recommends 'BUY' on Poonawalla Fincorp with INR 610 Target

• Poonawalla Fincorp (PFL) reported a 102% QoQ PAT growth to INR 1.5 billion in 3QFY26, despite missing estimates by 21%.
• Net Interest Income (NII) increased 50% YoY to INR 9.2 billion, while other income surged 173% YoY due to higher fee income.
• Operating expenses rose 90% YoY to INR 5.5 billion, with the cost-to-income ratio improving QoQ to 51% from 57%.
• Management expects strategic digital and distribution investments to complete in FY26, positioning PFL for operating leverage benefits.
• Motilal Oswal reiterates a 'BUY' rating, projecting a target price of INR 610 based on 3x Dec’27E Book Value Per Share (BVPS).

Why It Matters: Motilal Oswal recommends buying Poonawalla Fincorp, citing strong profitability and expansion potential.