Poonawalla Fincorp, L&T Finance, Mahindra Finance and HDB Financial Services emerged among the fastest-growing NBFCs in India based on their Q1 FY27 performance. These lenders recorded strong expansion in their loan books and profits, highlighting their growing scale and momentum in the Indian financial services sector. The article compares large NBFCs with a book size above Rs. 50,000 crore that had announced their results for the quarter ended June 30, 2026.
Best Fastest-Growing NBFCs in India in Q1 FY27
- Poonawalla Fincorp
- L&T Finance
- Mahindra Finance
- HDB Financial Services
Top Indian NBFCs in Q1 FY27
|
NBFC |
Book Size |
YoY Growth |
Q1 PAT |
PAT Growth |
Gross NPA / GS3 |
|
Poonawalla Fincorp |
Rs. 67,054 crore |
62.5% |
Rs. 308 crore |
391.5% |
1.37% |
|
HDB Financial Services |
Rs. 1,22,048 crore |
11.3% |
Rs. 785 crore |
38.3% |
2.34% |
|
L&T Finance |
Rs. 1,29,634 crore |
27% |
Rs. 902 crore |
29% |
2.86% |
|
Mahindra Finance |
Rs. 1,37,449 crore |
12.7% |
Rs. 927 crore |
75.4% |
3.5% |
Book size refers to AUM, except for L&T Finance, where it refers to the consolidated loan book. PAT figures are consolidated, and asset quality is based on GNPA/Gross Stage 3 as reported for Q1 FY27. Figures are subject to restatement.
1. Poonawalla Fincorp
Poonawalla Fincorp is one of the fastest-growing NBFCs in India and in the group. Its AUM rose by 62.5% YoY to Rs. 67,054 crore, nearly four times the broader NBFC sector growth rate. PAT jumped to Rs. 308 crore from Rs. 62.60 crore, while gross NPA improved to 1.37 per cent from 1.84 per cent despite rapid expansion. Newer products contributed 26 per cent of disbursements, while the Rs. 2,500 crore QIP strengthened its capital position.
Why it stands out: It delivered the highest growth with the lowest gross NPA among the four NBFCs, combining rapid scale-up with improving asset quality.
2. HDB Financial Services
HDB Financial Services, among the best NBFCs in India, reported an AUM of Rs. 1,22,048 crore, growing 11.3 per cent YoY, with its gross loan book at Rs. 1,21,846 crore. PAT increased 38.3 per cent to Rs. 785 crore, supported by 19.9 per cent growth in net interest income to Rs. 2,509 crore. Gross Stage 3 improved to 2.34 per cent, while return on equity stood at 15 per cent, the highest among the four.
Why it stands out: Despite slower AUM growth, HDB Financial Services delivered the strongest ROE in the group and operates the widest branch network, serving 23.9 million customers across 1,710 branches.
3. L&T Finance
With a consolidated book of Rs. 1,29,634 crore, this leading NBFC in India grew 27 per cent YoY, while its retail book reached Rs. 1,27,535 crore. Consolidated PAT rose 29 per cent to a record Rs. 902 crore, supported by a 36 per cent increase in retail disbursements to Rs. 23,852 crore. Gross Stage 3 improved to 2.86 per cent from 3.31 per cent, highlighting better asset quality.
Why it stands out: It combines large-scale operations with consistent growth, maintaining a Rs. 1.29 lakh crore+ book while continuing to expand at a strong pace.
4. Mahindra Finance
Among the top NBFCs in India, this company reported the largest book size at Rs. 1,37,449 crore, with business assets growing 12.7 per cent YoY. Consolidated PAT surged 75.4 per cent to Rs. 927 crore, supported by record Q1 disbursements of Rs. 15,564 crore. Growth was driven by tractor financing, passenger vehicle loans, SME lending and mortgages. Net interest margin improved to 7.3 per cent, while credit costs declined to 1.5 per cent.
Why it stands out: Despite slower book growth, it delivered the highest profit among the four NBFCs, highlighting a strong earnings recovery and improved profitability.
Other Notable Lenders with Rapid Growth
Two lenders grew faster in percentage terms during the quarter but from much smaller books, which is why they sit outside the main comparison.
- Jio Financial Services reported lending AUM of Rs. 30,667 crore, up 2.6 times year on year, with consolidated profit at Rs. 830 crore. It is building a loan book almost from scratch, so the multiple is not directly comparable with an established lender.
- Aye Finance reported AUM of Rs. 7,329 crore, up 28 per cent year on year, with net profit up 143.9 per cent to Rs. 74.50 crore. It lends to micro and small enterprises and has guided for AUM growth of 25 to 30 per cent in FY27.
Key Growth Highlights From Q1 FY27
- Fastest AUM growth: Poonawalla Fincorp, at 62.5 per cent
- Largest book: Mahindra Finance, at Rs. 1,37,449 crore
- Largest consolidated profit: Mahindra Finance, at Rs. 927 crore
- Fastest profit growth: Poonawalla Fincorp, at 391.5 per cent
- Lowest gross NPA: Poonawalla Fincorp, at 1.37 per cent
- Highest return on equity: HDB Financial Services, at 15 per cent
- Highest return on assets: HDB Financial Services, at 2.5 per cent
Conclusion
Q1 FY27 showed growth running at very different speeds. Poonawalla Fincorp grew its book the fastest while improving asset quality. L&T Finance combined scale with a 27 per cent growth rate, while Mahindra Finance posted the largest consolidated profit and strongest earnings recovery. HDB Financial Services delivered the highest return on equity among the four, despite slower book growth. Comparing growth rates alongside asset quality, returns, and capital position provides a more complete view of how these NBFCs are performing.
Frequently Asked Questions
Which NBFC grew the fastest in Q1 FY27?
Among NBFCs with a book above Rs. 50,000 crore that had declared results by July 23, 2026, Poonawalla Fincorp grew the fastest. Its AUM rose 62.5 per cent year on year to Rs. 67,054 crore, against 27 per cent for L&T Finance, 12.7 per cent for Mahindra Finance and 11.3 per cent for HDB Financial Services.
Which NBFC reported the highest profit in Q1 FY27?
On a consolidated basis, Mahindra Finance reported the highest quarterly profit among the four at Rs. 927 crore, up 75.4 per cent year on year. L&T Finance followed at Rs. 902 crore and HDB Financial Services at Rs. 785 crore.
Is Poonawalla Fincorp one of the fastest growing NBFCs in India?
Yes, measured by AUM growth. Poonawalla Fincorp’s book grew 62.5 per cent year on year in Q1 FY27 to Rs. 67,054 crore, well ahead of what the broader NBFC sector has been running at, and gross NPA improved to 1.37 per cent over the same period.
