Piramal Finance Q1FY27 Results: Net profit up 67% YoY to ₹461 crore
- Consolidated net profit rose 67% YoY to ₹461 crore in Q1FY27
- Total income grew 37% to ₹1,693 crore, aided by 43% NII expansion
- PPOP surged 89% to ₹804 crore as opex grew just 10%
- AUM increased 25% to ₹1,06,940 crore; GNPA stable at 2.4%
*this image is generated using AI for illustrative purposes only.
Piramal Finance reported a 67% year-on-year increase in consolidated net profit to ₹461 crore for the first quarter of FY27, driven by robust growth in its retail and wholesale lending books. The company scheduled an analyst and institutional investor meeting in Mumbai on September 23, 2026, to discuss these results and future outlooks.
Total income rose 37% to ₹1,693 crore, supported by a 43% jump in net interest income (NII) to ₹1,442 crore. Pre-provision operating profit (PPOP) surged 89% to ₹804 crore, reflecting improved operational efficiency as the cost-to-income ratio declined to 52.5% from 65.6% in the same period last year.
What the Numbers Show
The divergence between top-line growth and expense management highlights significant operating leverage. While total income grew by 37%, operating expenses increased by only 10% to ₹889 crore. This disparity allowed PPOP to nearly double, indicating that the company is generating more profit per unit of revenue without a proportional increase in operational spend.
Financial Performance
| Metric | Q1FY27 | Q1FY26 | YoY Change |
|---|---|---|---|
| Net Interest Income | ₹1,442 crore | ₹1,010 crore | +43% |
| Total Income | ₹1,693 crore | ₹1,237 crore | +37% |
| Operating Expenses | ₹889 crore | ₹812 crore | +10% |
| PPOP | ₹804 crore | ₹425 crore | +89% |
| Net Profit | ₹461 crore | ₹276 crore | +67% |
Net interest margin (NIM) expanded by 47 basis points to 6.5%, remaining stable quarter-on-quarter. The growth business RoAUM stood at 1.9%, up 33 basis points year-on-year.
Asset Quality and AUM Growth
Assets under management (AUM) grew 25% to ₹1,06,940 crore, with retail AUM rising 32% to ₹91,249 crore. Wholesale AUM increased 27% to ₹13,238 crore. Asset quality remained stable with gross NPA at 2.4%, down from 2.8% in Q1FY26. Retail 90+ days past due (DPD) was contained at 0.7%.
The balance sheet showed gross debt rising 20% to ₹82,345 crore, while net worth increased to ₹28,906 crore. The liquidity coverage ratio averaged 553%, well above regulatory requirements.
Historical Stock Returns for Piramal Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.05% | -4.24% | +6.97% | +26.00% | +66.37% | +66.37% |
Can Piramal Finance sustain its current 52.5% cost-to-income ratio as it scales AUM further, or will operational expenses rise disproportionately with growth?
How does the 6.5% NIM compare to peer NBFCs, and what strategies will the company employ to defend margins amidst potential interest rate volatility?
Given the 32% surge in retail AUM, what specific risk mitigation measures are in place to prevent slippage in asset quality as the loan book expands rapidly?
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