FY 26 highlighted different growth paths across India’s major NBFCs, including Poonawalla Fincorp, L&T Finance, HDB Financial Services and Mahindra Finance. While some lenders expanded their loan portfolios, others strengthened profitability, improved operational performance or maintained asset quality.
This comparison examines the FY26 results of these NBFCs across portfolio growth, profitability, returns, asset quality and operational progress.
Best Performing NBFCs FY26 Compared
- Poonawalla Fincorp
- L&T Finance
- HDB Financial Services
- Mahindra Finance
Top NBFCs in India 2026
| NBFC | FY26 Portfolio Size | YoY Growth | FY26 PAT | Key Highlight |
| Poonawalla Fincorp | ₹60,348 crore AUM | 69.4% | ₹541.81 crore | Fastest growth and return to profitability |
| L&T Finance | ₹1,21,728 crore | 25% | ₹2,981 crore | Scale and profitability |
| HDB Financial Services | ₹1,18,733 crore | 10.70% | ₹2,544 crore | Steady growth and capital strength |
| Mahindra Finance | ₹1,34,096 crore | 12% | ₹2,855 crore | Operational recovery and improved performance momentum |
1. Poonawalla Fincorp
Poonawalla Fincorp emerged as one of the best NBFCs in India in terms of recovery by combining the fastest AUM growth with a return to profitability. The company’s AUM increased 69.4% year-on-year to ₹60,348 crore. It reported standalone PAT of ₹541.81 crore in FY26 compared with a loss of ₹98.34 crore in FY25.
Along with growth, the company maintained asset quality, with Gross NPA at 1.44% and Net NPA at 0.74%. Newly introduced products contributed ₹8,298 crore to AUM, while the branch network expanded to 504 locations.
Why it stood out: Poonawalla Fincorp combined the fastest portfolio growth among the four companies with a return to profitability, making FY26 a year of both expansion and business turnaround.
2. L&T Finance
L&T Finance delivered a balanced performance in FY26, supported by growth across its retail lending business. The company’s consolidated loan book increased 25% to ₹1,21,728 crore, while the retail book grew 26% to ₹1,19,508 crore. Retail disbursements increased to ₹83,213 crore. The company reported PAT of ₹2,981 crore, RoA of 2.37% and RoE of 11.25%.
Why it stood out: L&T Finance demonstrated the ability to combine scale expansion with strong profitability metrics.
3. HDB Financial Services
HDB Financial Services maintained steady growth during FY26, with AUM reaching ₹1,18,733 crore, representing 10.70% year-on-year growth. The company reported revenue of ₹18,430 crore and PAT of ₹2,544 crore, reflecting 16.91% growth. It recorded RoA of 2.19%, RoE of 13.94%, and capital adequacy ratio of 21.40%.
Its customer base increased to 2.29 crore. Asset quality remained an area to monitor, with Gross NPA at 2.44% and Net NPA at 1.09%.
Why it stood out: HDB Financial Services maintained profitability, scale and capital strength while continuing to expand its customer franchise.
4. Mahindra Finance
Mahindra Finance recorded the largest portfolio size among the four companies compared, with AUM reaching ₹1,34,096 crore, up 12% year-on-year. The company focused on improving underwriting, customer segmentation and collections through data-driven and digital initiatives. Its operational PAT increased 60%, reflecting improvement in business performance.
Why it stood out: Mahindra Finance demonstrated recovery momentum while maintaining growth across its large lending portfolio.
Key Performance Highlights Across NBFCs in 2026
- Fastest AUM growth: Poonawalla Fincorp, at 69.4%
- Highest disclosed PAT: L&T Finance, with ₹2,981 crore.
- Largest portfolio size: Mahindra Finance, with ₹1,34,096 crore AUM.
- Highest disclosed RoA: L&T Finance, with 2.37%.
- Lowest Gross NPA: Poonawalla Fincorp, at 1.44%.
- Strongest operational PAT growth: Mahindra Finance, at 60%.
Conclusion
FY26 reflected different strengths across India’s NBFC sector. Poonawalla Fincorp emerged as a key growth story by combining rapid AUM expansion with a return to profitability. L&T Finance demonstrated scale and earnings strength, HDB Financial Services maintained steady profitability and capital strength, while Mahindra Finance showed operational recovery.
The comparison highlights that NBFC performance needs to be evaluated across multiple factors, including growth, profitability, asset quality and operational progress.
Frequently Asked Questions
1. Which are the top NBFCs in India 2026 based on FY26 performance?
Poonawalla Fincorp, L&T Finance, HDB Financial Services and Mahindra Finance were among the NBFCs that stood out in FY26. Their performances varied across growth, profitability, asset quality and operational recovery.
2. Which NBFCs are growing fastest in India?
Poonawalla Fincorp recorded the fastest AUM growth in FY 26 among the four companies assessed. Poonawalla Fincorp AUM growth hit 69.4% to ₹60,348 crore, compared with growth of 25% for L&T Finance, 12% for Mahindra Finance and 10.70% for HDB Financial Services.
3. Which leading NBFC in India showed the strongest turnaround in FY26?
Poonawalla Fincorp and Mahindra Finance both reported notable recoveries. Poonawalla Fincorp moved from a ₹98.34 crore loss in FY25 to a standalone profit of ₹541.81 crore, while Mahindra Finance recorded a 60% increase in operational PAT.
