Piramal Finance reported a 67% year-on-year rise in net profit to ₹461 crore for Q1FY27, driven by strong growth in its retail lending book and improved operating leverage. The lender’s assets under management (AUM) grew 25% YoY to ₹1,06,940 crore, with retail AUM expanding 32% to ₹91,249 crore. Asset quality remained stable, with gross non-performing assets (GNPA) at 2.4%, down from 2.8% in the corresponding period last year.

The company’s pre-provision operating profit (PPOP) surged 89% YoY to ₹804 crore, reflecting significant efficiency gains. Total income rose 37% YoY to ₹1,693 crore, while operating expenses grew at a slower pace of 10% YoY to ₹889 crore. This divergence resulted in the cost-to-income ratio contracting sharply to 52.5% from 65.6% in Q1FY26.

Retail Lending Growth

Retail disbursements jumped 44% YoY to ₹12,527 crore in Q1FY27. Mortgage products, comprising housing loans and loan against property (LAP), constituted 67% of retail AUM, reaching ₹61,199 crore. Unsecured products also saw robust growth, with digital loan AUM rising 67% YoY to ₹5,236 crore and salaried personal loans up 49% YoY to ₹8,381 crore. Vintage risk metrics remained healthy, with 90+ days past due (DPD) ratios stable at 0.7% for the overall retail portfolio.

Wholesale Lending Expansion

Wholesale lending AUM grew 27% YoY to ₹13,238 crore. The portfolio is diversified across real estate (70%) and corporate mid-market loans (30%). Disbursements in this segment rose 13% YoY to ₹2,604 crore. Repayments remained strong, totaling ₹1,932 crore, which was 74% of total disbursements in the quarter. The portfolio effective interest rate stood at 14.2%.

What the Numbers Show

The expansion in profitability was largely operational rather than driven by non-recurring items. In Q1FY26, profit benefited from an estimated ₹105 crore positive impact due to expected credit loss (ECL) rebalancing. Excluding this one-time benefit, the current quarter’s ₹461 crore net profit represents a substantial organic improvement. Furthermore, associate income contributed ₹99 crore to the bottom line, up 26% YoY, indicating steady returns from investments in entities like Alternatives and Pramerica Life Insurance.

Balance Sheet and Liquidity

Borrowings increased 20% YoY to ₹82,345 crore, supporting the asset growth. The cost of borrowings declined to 8.80% from 9.13% in Q1FY26, aiding net interest margin stability at 6.5%. The company maintained strong liquidity, with a liquidity coverage ratio (LCR) of 553% on a period-average basis, well above the regulatory requirement of 100%.

Analyst Meeting Scheduled

Piramal Finance will host an analyst and institutional investor meeting on September 28, 2026, at the Nuvama Emerging India CEO Forum in Mumbai. The event will provide further insights into the company’s strategic outlook and performance trajectory.

Piramal Finance approved the allotment of ₹1,100 crore worth of secured non-convertible debentures (NCDs) on a private placement basis. The Committee of Directors (Administration, Authorisation & Finance) sanctioned the move during its meeting held on September 21, 2026.

The company issued 1,10,000 secured, rated, listed, and redeemable NCDs, each carrying a face value of ₹1,00,000. The total issuance value stands at ₹1,100,00,00,000 (Rupees One Thousand One Hundred Crore only).

Listing Details

The NCDs are proposed to be listed on the Wholesale Debt Market of both the National Stock Exchange of India Limited (NSE) and BSE Limited. The NSE serves as the designated stock exchange for this issuance.

Regulatory Compliance

The disclosure was made pursuant to Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The committee meeting commenced at 10:45 am and concluded at 11:00 am on September 21, 2026.