Piramal Finance reported a 67% year-on-year rise in net profit to ₹461 crore for the quarter ended June 30, 2026, driven by robust growth in Assets Under Management (AUM) and improved operational efficiency. The company’s consolidated net interest income rose 43% YoY to ₹1,442 crore, while total income grew 37% to ₹1,693 crore. This performance underscores the effectiveness of its retail scale-up strategy, with growth AUM increasing 32% YoY to represent 98% of total AUM. The Board approved a fund raise of up to ₹4,000 crore through qualified institutions placement or other permitted methods, subject to shareholder approval, to support further expansion.

Consolidated Financial Performance

The financial results reflect strong momentum across key metrics. Pre-provision operating profit (PPOP) surged 89% YoY to ₹804 crore, benefiting from controlled operating expenses which grew only 10% YoY to ₹889 crore. The cost-to-income ratio declined significantly to 52.5% from 65.6% in the prior year, highlighting improved operational leverage. Asset quality remained stable, with a gross NPA ratio of 2.4% and a net NPA ratio of 1.6% as of June 30, 2026. Networth stood at ₹28,906 crore, supported by cash and equivalents of ₹6,925 crore.

Operational and Business Highlights

Retail disbursements grew 44% YoY to ₹12,527 crore, supported by an expanded footprint of 780 branches across 607 cities. The customer franchise grew 24% YoY to 6 million, with 56% of new customers being self-employed. Retail AUM increased 32% YoY to ₹91,249 crore, while wholesale lending remained stable. Profitability metrics improved, with the net income margin expanding by 47 basis points YoY to 6.5%. The average cost of borrowing decreased by 33 basis points YoY to 8.80%, contributing to margin expansion.

Strategic Initiatives and AI Integration

The company highlighted significant advancements in its AI capabilities through Piramal.ai, with token usage rising more than 5x YoY to 320 billion tokens. AI-driven collections increased nearly 12x to ₹1,019 crore per month. Key AI applications include Credit.ai for underwriting automation, Operations.ai for branch efficiency, and Collections.ai for debt recovery. The Board has authorized the Committee of Directors to finalise the details of the proposed ₹4,000 crore fund raise, which will be executed post shareholder approval.

Investor Engagement Schedule

Pursuant to Regulation 30(6) of the SEBI Listing Regulations, Piramal Finance Limited announced a schedule for Analyst/Institutional Investor Meetings. The company will conduct roadshows for Non-Depositary Receipts (NDR) in Hong Kong on August 10, 2026, and in Singapore from August 11 to 13, 2026. An investor presentation covering the Q1FY27 results was enclosed with the intimation. Additionally, a Chennai roadshow is scheduled for August 3, 2026.

Piramal Finance Limited has initiated a postal ballot process to seek shareholder approval for raising capital aggregating up to ₹4,000 crore through various instruments. The funds are intended to augment the company's capital base for onward lending, support the growth of assets under management, and meet capital adequacy ratios.

The Board of Directors approved the proposal on July 16, 2026, authorizing the issuance of equity shares or other eligible securities. The proposed methods include qualified institutions placement, rights issue, preferential allotment, private placement, or a combination thereof. The securities may be offered to eligible investors, including retail, non-institutional, and institutional investors, in one or more tranches.

Key Resolution Details

The resolution seeks approval to issue securities for an aggregate amount of up to ₹4,000 crore. The table below outlines the key aspects of the special business:

The company stated that pending the utilization of proceeds, funds may be invested in creditworthy instruments, government securities, debt or mutual funds, and deposits with scheduled commercial banks. The specific deployment of funds will be detailed in the offering materials.

E-Voting Schedule and Process

Piramal Finance has engaged National Securities Depository Limited (NSDL) to facilitate remote e-voting. The voting period is open to all members whose names appear in the register of members or the list of beneficial owners as of the cut-off date of July 10, 2026.

Shareholders must cast their votes through the remote e-voting system; proxy voting is not permitted. The scrutinizer for the process is Mr. Bhaskar Upadhyay, a Practicing Company Secretary. The results of the postal ballot will be announced on or before August 19, 2026, and subsequently posted on the company's website and the stock exchanges.

Regulatory Compliance

The notice was dispatched in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that none of the directors or key managerial personnel are interested in the resolution, other than their shareholding in the company.