Piramal Finance reported a 210% year-on-year increase in consolidated net profit to ₹1,506 Cr for the financial year ended March 31, 2026 (FY26), driven by a robust expansion in its retail lending portfolio and improved asset quality. Total AUM grew 25% YoY to ₹1,01,230 Cr, successfully completing the company's transition to a growth-oriented business mix. The firm met its FY26 targets, achieving a Growth Profit Before Tax (PBT) of ₹1,560 Cr, and secured several credit rating upgrades, including an upgrade to AA+ / Stable from AA / Stable by domestic agencies in February and March 2026.

Financial Performance

The strong profitability was underpinned by a 41% YoY increase in net interest income to ₹1,362 Cr in Q4 FY26. For the full year, net interest income rose 32% to ₹4,731 Cr. Pre-provision operating profit (PPOP) for the year grew 45% to ₹2,294 Cr. The company’s capital adequacy ratio stood at 19.8% as of March 31, 2026, while net worth was recorded at ₹28,191 Cr.

Retail and Wholesale Growth

Retail AUM increased 33% YoY, with disbursements rising 34% YoY. The retail business now drives the consolidated financials, supported by a reduction in operating expenses as a percentage of AUM. The company’s customer franchise grew 22% YoY to 5.7 Mn. Wholesale 2.0 AUM also contributed to the overall growth, focusing on underpenetrated real estate and corporate mid-market lending. Legacy AUM, classified as discontinued, now constitutes less than 3% of the total AUM.

Asset Quality and Outlook

Asset quality improved across retail products in Q4 FY26, with Gross Non-Performing Assets (GNPA) at 2.3% and Net Non-Performing Assets (NNPA) at 1.6%. The company’s cost of borrowings declined by approximately 35 basis points during the cycle. Looking ahead to FY27, Piramal Finance targets approximately 25% growth in total AUM and a 50% increase in consolidated profits.

Piramal Finance Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, with the stock exchanges. The filing, made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, includes an independent reasonable assurance statement by LKM & Co. Chartered Accountants on the BRSR Core parameters. The data presented for FY 2025-26 pertains to Piramal Finance Limited and its subsidiaries, following the merger with Piramal Enterprises Limited which became effective on September 16, 2025.

The report outlines the company's material responsible business conduct issues, identifying Human Capital Development, Operational Eco-efficiency, and Sustainable Finance as key opportunities. Conversely, Customer Experience and Risk Management are noted as risks with potential negative financial implications. The company has established a Board-level Sustainability & Risk Management Committee to oversee its ESG transformation journey, chaired by Ms. Shikha Sharma.

Financial and Operational Metrics

Piramal Finance reported a total employee count of 16,981 as of March 31, 2026, comprising 16,684 permanent employees and 297 other than permanent employees. The company operates 701 offices nationally and does not have any manufacturing plants. The turnover rate for permanent employees stood at 45.27% for FY 2025-26.

The company’s net worth was reported at ₹23,728.33 crore, while turnover stood at ₹11,852.49 crore. The report details that Corporate Social Responsibility (CSR) is not applicable to Piramal Finance Limited as an entity, though the CSR budget of the erstwhile Piramal Enterprises Limited was transferred to it pursuant to the merger.

Environmental and Social Performance

The company disclosed its environmental footprint for the fiscal year, reporting total energy consumption of 34,297.71 GJ, with an intensity of 2.89 GJ per ₹ crore of turnover. Total Scope 1 and Scope 2 greenhouse gas emissions were 5,935.35 tCO2e. Water consumption totalled 1,93,008.29 kilolitres. The company generated 137.93 metric tonnes of waste, of which 1.96 metric tonnes of e-waste was recycled.

On the social front, the company reported that 98% of employees completed mandatory training on ESG principles. It supported 1,28,103 women borrowers and provided credit to 17,699 new customers during the year. The company also conducted financial literacy sessions for over 7.4 crore beneficiaries.

Key Financial and Operational Data

Governance and Assurance

The report confirms that the company has not incurred any fines, penalties, or punishment in proceedings with regulators during the financial year. LKM & Co. Chartered Accountants provided an independent reasonable assurance statement on the non-financial sustainability information (BRSR Core KPIs). The assurance engagement covered parameters including Greenhouse Gas footprint, Water footprint, Energy footprint, and Employee wellbeing.