Piramal Finance reported a 67% year-on-year rise in consolidated net profit to ₹461 crore for the quarter ended June 2026, driven by robust asset under management (AUM) growth and controlled credit costs. The company also announced an analyst and institutional investor meeting scheduled for September 1, 2026.

The Mumbai-headquartered non-banking financial company (NBFC) saw its total AUM grow 25% YoY to ₹1,06,940 crore. Retail lending remained the primary growth engine, with retail AUM expanding 32% YoY to ₹91,249 crore. This expansion was supported by a 44% increase in retail disbursements, reaching ₹12,527 crore in the quarter.

Financial Performance

Pre-provision operating profit (PPOP) surged 89% YoY to ₹804 crore, reflecting strong operating leverage. Net interest income rose 43% YoY to ₹1,442 crore, while total income increased 37% YoY to ₹1,693 crore. Operating expenses grew at a more modest 10% YoY to ₹889 crore, allowing the cost-to-income ratio to improve significantly to 52.5% from 65.6% in the corresponding period last year.

Asset Quality and Capital

Asset quality remained stable with gross non-performing assets (GNPA) at 2.4%, down from 2.8% in Q1 FY26. Retail delinquencies (90+ DPD) stood at 0.7%, consistent with recent quarters. The company maintained a strong liquidity position with an average liquidity coverage ratio (LCR) of 553% and cash equivalents of ₹6,925 crore.

What the Numbers Show

The divergence between the 89% surge in PPOP and the 10% rise in operating expenses highlights significant operational efficiency gains. With retail opex-to-AUM declining by 66 basis points YoY to 3.5%, the company is successfully scaling its asset book while compressing costs, directly fueling the margin expansion evident in the improved cost-to-income ratio.

Strategic Initiatives

Piramal Finance is expanding its rural footprint, with rural micro-loan AUM doubling 101% YoY to ₹1,547 crore. The company also launched its gold loan business in Q1 FY27, disbursing ₹6 crore in its first full month of operations across 67 branches. Additionally, the firm introduced an AI-powered investor relations agent, Pia, to enhance investor engagement.

Piramal Finance Limited has opened its qualified institutional placement of fully paid-up equity shares with a floor price of ₹2102.65 per share. The issue commenced on August 24, 2026, following shareholder approval granted via postal ballot on August 17, 2026.

The Committee of Directors (Administration, Authorisation & Finance) approved the opening of the issue and the preliminary placement document during a meeting held on August 24, 2026. The committee fixed August 24, 2026, as the relevant date for pricing purposes under Regulation 171(b)(i) of the SEBI ICDR Regulations.

Pricing and Regulatory Framework

The floor price of ₹2102.65 per equity share was determined based on the pricing formula prescribed under Regulation 176(1) of the SEBI ICDR Regulations. The company may offer a discount of up to 5% on this floor price at its discretion, in accordance with regulatory guidelines.

The final issue price will be determined by the company in consultation with the book running lead managers appointed for the issue.

Governance and Compliance

The board of directors initially approved the issue at its meeting on July 16, 2026. Shareholders subsequently passed a special resolution approving the placement on August 17, 2026.

In compliance with the SEBI Prohibition of Insider Trading Regulations, 2015, and the company’s code of conduct for designated persons, the trading window for dealing in the company’s securities remains closed for all designated persons and their immediate relatives.

The preliminary placement document was filed with the BSE Limited and the National Stock Exchange of India Limited on August 24, 2026. A copy of the document is available on the company’s website.