Piramal Finance reported a total Assets Under Management (AUM) of ₹1,01,230 Cr for the financial year 2026, successfully completing its AUM mix transition and crossing the ₹1,00,000 Cr milestone. The company has set a target of approximately 25% AUM growth for FY27, alongside a goal to grow its consolidated Profit After Tax (PAT) by around 50%. This strategic outlook follows a year where the lender met all its FY26 targets, including a Growth PBT of ₹1,560 Cr.

The financial performance for FY26 was robust, with the consolidated net profit surging 210% year-on-year to ₹1,506 Cr, up from ₹485 Cr in the previous year. In the fourth quarter of FY26, the net profit stood at ₹502 Cr, a significant increase from ₹102 Cr in the corresponding quarter of the previous year. The company’s retail business played a pivotal role in this growth, with retail AUM increasing 33% year-on-year to ₹64,652 Cr and disbursements rising 34% year-on-year.

Business Performance and Asset Quality

Piramal Finance’s growth business, comprising retail and Wholesale 2.0 segments, now drives the consolidated financials. The Wholesale 2.0 segment focuses on underpenetrated real estate and corporate mid-market lending, contributing to a diversified and granular book. The Legacy (discontinued) business has been reduced to less than 3% of the total AUM. Asset quality remained stable, with Gross Non-Performing Assets (GNPA) at 2.3% and Net Non-Performing Assets (NNPA) at 1.6%. The capital adequacy ratio stood strong at 19.8%.

Operational Efficiency and Technology

The company has leveraged technology to enhance operational efficiency, with the use of Generative AI (Piramal.ai) growing more than 3x in FY26. AI applications spanned five key business areas: underwriting, growth, customer experience, productivity, and building capabilities. For instance, hands-free collections via AI reached ₹834 Cr monthly in Q4 FY26, up from ₹84 Cr in Q1 FY26. Additionally, the company reduced its operating expense-to-AUM ratio by approximately 290 basis points over the last 12 months, positioning it among the fastest-growing retail NBFCs in terms of AUM expansion while simultaneously improving efficiency.

FY26 Financial Highlights

The following table summarizes the key financial metrics for Piramal Finance for FY26 and Q4 FY26:

Note: Net profit figures include exceptional items such as gains from Shriram and Imaging, as well as merger-related expenses.

The National Company Law Appellate Tribunal (NCLAT) has allowed an appeal filed by Piramal Finance Limited , dispensing with the requirement to convene a meeting of equity shareholders for its scheme of amalgamation. The order, dated May 19, 2026, and uploaded on May 26, 2026, sets aside the previous directive from the National Company Law Tribunal (NCLT), Mumbai Bench, which had mandated the meeting. The tribunal ruled that the amalgamation of wholly owned subsidiaries into the holding company does not constitute a compromise or arrangement with members, thereby not necessitating a shareholder vote.

The scheme involves the merger of Piramal Corporate Tower Private Limited, Piramal Agastya Offices Private Limited, and DHFL Investments Limited with Piramal Finance Limited. The NCLAT observed that the transferor companies are wholly owned subsidiaries, and their entire paid-up capital is held by the transferee company. Consequently, no new shares will be issued, and there will be no change in the capital structure or dilution of shareholding for Piramal Finance Limited.

The tribunal noted that the negative pre-merger net worth of the transferor companies was already reflected in the consolidated financial statements of Piramal Finance Limited for the financial year ending March 31, 2025. The appellant's standalone financial statements for the year ending March 31, 2026, indicated a robust financial position with total assets of INR 1,09,542.43 Crores and a profit after tax of INR 1,540.02 Crores.

Key Financial Metrics

While allowing the appeal and setting aside the order regarding the shareholder meeting, the NCLAT upheld the condition imposed by the NCLT concerning secured and unsecured creditors. Piramal Finance Limited is directed to comply with the requirement of issuing notices to its secured and unsecured creditors in relation to the equity shareholders of the company. The certified copy of the order is currently awaited.