Piramal Finance reports Q1 FY2027 PAT of Rs 461 crore, up 67% YoY

What Piramal Finance announced

On 16 July 2026, Piramal Finance Limited released its unaudited financial results for the quarter ended 30 June 2026 (Q1 FY2027). The company reported a Profit After Tax (PAT) of Rs 461 crore, marking a 67% year‑on‑year increase. Total Assets Under Management (AUM) rose 25% YoY to Rs 1,06,940 crore, driven primarily by a 32% YoY rise in retail AUM. In addition, the Board approved a fund‑raise of up to Rs 4,000 crore, which will be pursued after obtaining shareholder approval.

Financial performance in detail

• Profitability: PAT of Rs 461 crore represents a 67% YoY jump. The net‑income margin expanded by 47 basis points to 6.5%, remaining stable quarter‑on‑quarter (QoQ). Cost‑to‑income fell sharply to 52.5% from 65.6% a year earlier, reflecting tighter cost control.
• Cost of borrowing stayed steady at 8.8% QoQ, while the average borrowing cost declined 33 bps YoY.
• Growth business metrics: Return on AUM (RoAUM) improved to 1.9% from 1.5% YoY. Opex‑to‑AUM for the growth segment dropped to 3.3% (down from 3.9%). Credit cost for the growth business held at 1.6%.
• Liquidity & capital: Net worth stood at Rs 28,906 crore. Cash and equivalents were Rs 6,925 crore, representing 6% of total assets. The AUM‑to‑equity ratio was 3.7x and the average Liquidity Coverage Ratio (LCR) was 553%, indicating a strong liquidity position.
• Ratings: The company received a BBB, Stable issuer rating from Japanese credit rating agencies, one notch below the sovereign rating.

Business highlights

Retail lending

• AUM: Retail AUM grew 32% YoY to Rs 91,249 crore, now accounting for 85% of total AUM. Mortgage AUM rose 30% YoY to Rs 61,199 crore, representing 67% of retail AUM.
• Disbursements: Retail disbursements surged 44% YoY to Rs 12,527 crore.
• Branch network: The footprint expanded to 780 branches across 607 cities in 26 states, supporting a 24% YoY increase in the customer franchise to 6 million.
• Yield & efficiency: Retail disbursement yields remained stable at 14.2%. Retail Opex‑to‑AUM declined 66 bps YoY to 3.5%, a cumulative reduction of roughly 300 bps over three years.

Wholesale lending

• AUM: Wholesale AUM grew 27% YoY to Rs 13,238 crore.
• Disbursements: Wholesale disbursements rose 13% YoY to Rs 2,604 crore.
• Repayments: Repayments (including pre‑payments) amounted to Rs 1,932 crore during the quarter, reflecting strong portfolio performance.
• Effective Interest Rate (EIR): Stood at 14.2% with an average ticket size of Rs 56 crore.

Asset quality & liabilities

• Asset quality remained stable with Gross NPA (GNPA) at 2.4% and Net NPA (NNPA) at 1.6%. Retail 90+ DPD was 0.7%.
• Liabilities: The company continued diversifying its borrowing mix across mutual funds, securitisation, and international borrowings. Average borrowing cost fell 33 bps YoY to 8.80%.
• ALM: Asset‑Liability Management remained well‑matched with positive gaps across all buckets.

Key facts at a glance

Why this matters for investors

The results demonstrate that Piramal Finance is scaling its balance sheet while improving profitability. A sharp decline in cost‑to‑income and a stable net‑income margin suggest better operational efficiency. The substantial increase in both retail and wholesale AUM, coupled with a widening customer franchise, points to continued market penetration. The board‑approved Rs 4,000 crore fund raise could provide additional capital for further expansion, though the exact instrument mix and timing remain to be disclosed and will require shareholder approval. Strong liquidity metrics (LCR 553%) and a solid BBB rating indicate a comfortable buffer against funding pressures. Asset quality staying stable amid rapid growth reassures that credit risk is being managed prudently.

Conclusion

Piramal Finance posted a robust Rs 461 crore PAT, a 67% YoY rise, and expanded its AUM by 25% in Q1 FY27. The Board’s approval of a Rs 4,000 crore fund raise signals intent to fund future growth, subject to shareholder consent. While the company shows strong operational metrics and a healthy balance sheet, investors will need to monitor the execution of the fund raise and any subsequent impact on capital structure.