The Board of Directors of Piramal Finance approved the unaudited condensed standalone and consolidated interim financial statements for the quarter ended June 30, 2026, on August 24, 2026. The company, formerly known as Piramal Capital & Housing Finance Limited, has transitioned its regulatory status from a Housing Finance Company (HFC) to a Non-Banking Financial Company - Investment and Credit Company (NBFC-ICC). This shift was formalized when the Reserve Bank of India issued the Certificate of Registration on April 4, 2025.

Financial Performance

Consolidated net profit attributable to owners of the company rose 66% year-on-year to ₹459.12 crore for the quarter ended June 30, 2026, compared to ₹276.37 crore in the same period last year. Total comprehensive income for the period stood at ₹659.27 crore, up from ₹309.50 crore in Q1FY26.

Standalone results mirrored this growth trajectory, with profit for the period increasing to ₹439.92 crore from ₹263.25 crore in the corresponding quarter of the previous fiscal year. Earnings per share (EPS) on a consolidated basis reached ₹20.38 (basic) and ₹20.27 (diluted), up from ₹12.22 and ₹12.13 respectively in Q1FY26.

Revenue and Expense Analysis

Total revenue from operations on a consolidated basis grew 27% to ₹3,368.27 crore, driven primarily by an expansion in interest income. Interest income increased to ₹3,085.48 crore from ₹2,393.43 crore year-ago. Fees and commission income also saw a modest rise to ₹126.83 crore from ₹114.27 crore. Other operating income, largely comprising recoveries from written-off accounts, contributed ₹99.61 crore.

On the expense side, total expenses climbed to ₹3,085.42 crore from ₹2,470.86 crore. Finance costs accounted for the bulk of this increase, rising to ₹1,733.86 crore from ₹1,491.71 crore. Impairment allowances on financial instruments reversed from a credit of ₹226.83 crore in Q1FY26 to a charge of ₹273.59 crore in the current quarter. Employee benefit expenses also increased to ₹504.16 crore from ₹450.84 crore.

Balance Sheet Signals

As of June 30, 2026, total assets on a consolidated basis stood at ₹1,13,669.75 crore, up from ₹1,10,546.47 crore at the end of FY26. Loans, the largest asset class, grew to ₹90,257.97 crore from ₹84,838.02 crore. Cash and cash equivalents declined significantly to ₹1,673.72 crore from ₹4,123.12 crore, reflecting deployment into lending activities.

Total liabilities and equity matched the asset side at ₹1,13,669.75 crore. Borrowings (other than debt securities) increased to ₹50,842.09 crore from ₹48,269.35 crore. Debt securities remained relatively stable at ₹31,389.80 crore. Equity share capital remained unchanged at ₹45.25 crore, while other equity reserves grew to ₹28,780.27 crore.

What the Numbers Show

A notable divergence exists between the growth in interest income and the rise in finance costs. While interest income expanded by approximately 29% year-on-year, finance costs grew by roughly 16%. This suggests an improvement in the net interest margin environment, although the exact NIM figure is not explicitly disclosed in the summary data. Furthermore, the reversal of impairment credits to impairment charges indicates a tightening in credit provisioning or specific asset quality movements during the quarter, contrasting with the previous year's release of provisions.

Corporate Developments

The financial statements reflect the impact of the Composite Scheme of Arrangement between Piramal Finance Limited (Transferee Company) and Piramal Enterprises Limited (Transferor Company). Sanctioned by the National Company Law Tribunal on September 10, 2025, the scheme became effective on September 16, 2025. The amalgamation has been accounted for using the pooling of interest method under Appendix C of Ind AS 103, with comparative figures restated accordingly.

The unaudited condensed interim financial statements were reviewed by Singhi & Co. and Lodha & Co. LLP, who issued their review reports on August 24, 2026. The reports confirm that nothing came to their attention to cause them to believe the statements are not prepared in accordance with Ind AS 34.

Piramal Finance Limited will convene a meeting of its Board of Directors on Monday, August 24, 2026, to consider a proposal for raising capital through the issuance of eligible securities by way of preferential allotment.

The company stated that the fund-raising exercise would be undertaken at an appropriate time, subject to prevailing market conditions and necessary regulatory or statutory approvals. The board is also expected to consider convening a general meeting of shareholders to seek their approval for the proposed issuance.

Regulatory Compliance and Trading Window

In compliance with Regulation 29 and Regulation 50 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Piramal Finance disclosed the scheduled board agenda. Concurrently, the trading window for dealing in the company's securities has been closed for all designated persons and their immediate relatives.

This restriction remains in effect in accordance with the company's Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons in the Securities of Piramal Finance Limited and the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended. The window will remain closed until further notice.

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