NCLAT dispenses with equity shareholder meeting for Piramal Finance amalgamation

The National Company Law Appellate Tribunal (NCLAT) has allowed an appeal filed by Piramal Finance Limited , dispensing with the requirement to convene a meeting of equity shareholders for its scheme of amalgamation. The order, dated May 19, 2026, and uploaded on May 26, 2026, sets aside the previous directive from the National Company Law Tribunal (NCLT), Mumbai Bench, which had mandated the meeting. The tribunal ruled that the amalgamation of wholly owned subsidiaries into the holding company does not constitute a compromise or arrangement with members, thereby not necessitating a shareholder vote.

The scheme involves the merger of Piramal Corporate Tower Private Limited, Piramal Agastya Offices Private Limited, and DHFL Investments Limited with Piramal Finance Limited. The NCLAT observed that the transferor companies are wholly owned subsidiaries, and their entire paid-up capital is held by the transferee company. Consequently, no new shares will be issued, and there will be no change in the capital structure or dilution of shareholding for Piramal Finance Limited.

The tribunal noted that the negative pre-merger net worth of the transferor companies was already reflected in the consolidated financial statements of Piramal Finance Limited for the financial year ending March 31, 2025. The appellant's standalone financial statements for the year ending March 31, 2026, indicated a robust financial position with total assets of INR 1,09,542.43 Crores and a profit after tax of INR 1,540.02 Crores.

Key Financial Metrics

Metric	Amount (INR)
Total Assets (Standalone)	1,09,542.43 Crores
Profit After Tax (Standalone)	1,540.02 Crores
Pre-Merger Net Worth	23,710.54 Crores
Post-Merger Net Worth	23,449.63 Crores

While allowing the appeal and setting aside the order regarding the shareholder meeting, the NCLAT upheld the condition imposed by the NCLT concerning secured and unsecured creditors. Piramal Finance Limited is directed to comply with the requirement of issuing notices to its secured and unsecured creditors in relation to the equity shareholders of the company. The certified copy of the order is currently awaited.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.88%	+2.57%	+6.60%	+24.43%	+50.11%	+50.11%

Piramal Finance Limited (formerly known as Piramal Capital & Housing Finance Limited) has filed its investor presentation with the stock exchanges, outlining its financial performance for FY26 and strategic outlook for FY27. The company reported a strong finish to the fiscal year, with consolidated net profit rising 210% year-on-year (YoY) to ₹1,506 Cr. Total Assets Under Management (AUM) crossed the ₹1,00,000 Cr milestone, reaching ₹1,01,230 Cr, a 25% YoY increase driven by the Growth AUM segment.

Upcoming Investor Conferences

Piramal Finance is scheduled to engage with investors at the 360 ONE Capital (B&K) 16th Annual Investor Conference - TRINITY INDIA 2026 in Mumbai on 27th May 2026. This follows the company's participation in the Macquarie Asia Conference 2026 in Hong Kong and Citi's 2026 Pan-Asia Conference in Singapore earlier in May.

FY26 Business Snapshot

The company's key balance sheet and capital metrics as of Q4 FY26 reflect robust growth and stability. Net Worth stood at ₹28,191 Cr, with a Capital Adequacy ratio of 19.8% and an AUM to Equity multiple of 3.6x. Asset quality remained controlled, with a Gross NPA (GNPA) of 2.3% and Net NPA (NNPA) of 1.6%. Growth AUM has expanded at a 45% CAGR since March 2022, while Legacy AUM has declined at a 50% CAGR over the same period.

Metric	Value
Total AUM	₹1,01,230 Cr
Net Worth	₹28,191 Cr
Capital Adequacy	19.8%
AUM / Equity	3.6x
GNPA	2.3%
NNPA	1.6%

Q4 and Full-Year FY26 Financial Performance

The company met all its stated FY26 targets, including a Growth Profit Before Tax (PBT) of ₹1,560 Cr. Consolidated Net Interest Income (NII) for the full year grew 32% YoY to ₹4,731 Cr, while Pre-Provision Operating Profit (PPOP) increased 45% YoY to ₹2,294 Cr.

Metric	Q4 FY26	Q4 FY25	YoY %	FY26	FY25	YoY %
Interest Income	₹3,038 Cr	₹2,381 Cr	+28%	₹11,121 Cr	₹8,909 Cr	+25%
Net Interest Income	₹1,362 Cr	₹964 Cr	+41%	₹4,731 Cr	₹3,591 Cr	+32%
Total Income	₹1,556 Cr	₹1,341 Cr	+16%	₹5,601 Cr	₹4,596 Cr	+22%
PPOP	₹694 Cr	₹557 Cr	+25%	₹2,294 Cr	₹1,582 Cr	+45%
Net Profit	₹502 Cr	₹102 Cr	+390%	₹1,506 Cr	₹485 Cr	+210%

Q4 FY26 also witnessed pivotal credit rating upgrades. Domestic agencies CRISIL, ICRA, and CARE upgraded the company to AA+ / Stable, while international agency S&P upgraded it to BB from BB-. Moody's revised its outlook to Positive from Stable at Ba3.

Retail Business Performance

The retail segment demonstrated strong growth, with retail AUM rising 33% YoY to ₹64,652 Cr and disbursements growing 34% YoY. The total customer franchise expanded 22% YoY to 5.7 million customers. The branch network spans 701 branches across 26 states, with plans to open around 180 new branches in FY27. Asset quality improved across all products in Q4 FY26.

Product	AUM (₹ Cr)	Share of Consol. AUM
Housing Loans	31,855	31%
LAP	25,983	26%
Used Car Loans	5,538	5%
Salaried Personal Loans	7,744	8%

Piramal.ai — AI-Driven Growth

The deployment of Generative AI (Gen-AI) grew more than 3x in FY26 across underwriting, growth, customer experience, productivity, and operations. Notable achievements include monthly collections through hands-free collections growing from ₹84 Cr in Q1 FY26 to ₹834 Cr in Q4 FY26, and fraud decisioning AI engine alerts scaling from 9,51,599 cases to 19,02,711 cases in the same period.

FY27 Outlook

Building on FY26 momentum, Piramal Finance has set its targets for FY27. The company aims for approximately 25% growth in Total AUM and around 50% growth in Consolidated PAT. The Return on AUM (RoAUM) is targeted to reach approximately 2.5%. The medium-term blueprint targets 2x AUM in approximately 3 years (by March 2028), with a RoAUM exceeding 3%.