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 board has approved issuing up to 82,94,000 warrants to Nithyam Realty, a promoter group entity, at ₹2,110 each, aggregating ₹1,750.03 crore.

Warrant issuance details

The following table summarises the key parameters of the proposed warrant issuance:

Shareholder approval

The company has scheduled an Extraordinary General Meeting (EGM) on September 19, 2026, to seek shareholder approval for the warrant issuance. The allotment is proposed to Nithyam Realty, which forms part of the promoter group of Piramal Finance.

Pricing and terms

The issue price of ₹2,110 per warrant includes a premium of ₹2,108 per equity share with a face value of ₹2. This price is ₹24.94 higher than the floor price of ₹2,085.06 determined under SEBI ICDR regulations. The tenor of the warrants is 18 months from allotment. The subscriber will pay 25% of the issue price at subscription, with the remaining 75% payable upon exercise. Any unconverted warrants will lapse, and the paid amount will be forfeited.

Post-issue shareholding

Upon full exercise of the warrants, Nithyam Realty’s stake will increase to 3.53% on a fully diluted basis as of August 21, 2026. The transaction is not classified as a related-party transaction under SEBI Listing Regulations, though the subscriber is a promoter group entity.