Piramal Finance LimitedQ2 FY27 Results & Financial Update
Piramal Finance Limited: Q2 FY27 consolidated results and company financials – revenue ₹3,659.19 Cr, PAT ₹545.42 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Piramal Finance Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Piramal Finance Limited reported consolidated revenue of INR 3,659.19 crore for the quarter ended September 30, 2026, marking an increase compared to the previous quarter's revenue of INR 3,368.27 crore. Total income for Q2 FY27 stood at INR 3,717.16 crore, up from INR 3,429.54 crore in Q1 FY27. Profit before tax (PBT) reached INR 543.14 crore, expanding sequentially from INR 344.12 crore. Consolidated profit after tax (PAT) rose to INR 545.42 crore compared with INR 460.98 crore in the preceding quarter, yielding basic earnings per share (EPS) of INR 23.68 compared to INR 20.38 in Q1 FY27.
Total assets under management (AUM) expanded to INR 1,13,112 crore, reflecting a 24% year-on-year growth rate and a 6% sequential increase, driven by strong traction across retail and wholesale asset classes. The retail-to-wholesale AUM mix stood at 86:14, compared with 82:18 in the same period last year. Retail AUM reached INR 97,462 crore, marking a 30% year-on-year expansion, while wholesale lending AUM stood at INR 13,978 crore.
Net interest income (NII) on a pro forma business basis was supported by stable lending yields and improving cost-of-borrowing metrics, aided by recent credit rating upgrades. The company's incremental cost of long-term borrowing improved to 8.46% during H1 FY27 compared with 8.67% in H2 FY26. Operating efficiency continued to strengthen, with the company cost-to-income ratio dropping to 52.1% from 61.2% in Q2 FY26, and retail opex-to-AUM declining to 3.48%.
Asset quality metrics remained resilient across the portfolio. Gross non-performing assets (GNPA) ratio stood at 2.4%, improving from 2.6% in Q2 FY26, while retail 90+ days past due (DPD) delinquency remained stable at 0.7%. Total provisions for the period included loan loss provisions and fair value adjustments totaling INR 200.90 crore on a structured reporting basis, reflecting continued prudent provisioning coverage across stage-wise assets.
The company raised total capital of INR 3,850 crore during the quarter through a Qualified Institutions Placement (QIP) of INR 2,100 crore and a preferential allotment of warrants of INR 1,750 crore to the promoter group, strengthening its net worth to INR 31,180 crore and capital adequacy to 20.10%. The legacy asset book, originating from the DHFL merger, continued to run down and now accounts for only 1.5% of total AUM at INR 1,673 crore.
01 · Business model
What does Piramal Finance do?
Piramal Finance Limited operates as a diversified non-banking financial company (NBFC) in India, delivering a broad array of retail and wholesale lending solutions. Its portfolio spans housing loans, loans against property, used car financing, loans against securities, salaried and unsecured business loans, micro-finance, and corporate mid-market real estate lending.
The company distributes its retail financial products through an extensive physical network spanning hundreds of urban, rural, and gold-focused branches across multiple Indian states, complemented by digital origination platforms and strategic partnerships.
Piramal Finance functions under a strategy that emphasizes retail expansion, operating leverage improvement, diversification of borrowings, and the integration of artificial intelligence across underwriting, collections, and customer service workflows.
02 · Historical context
What shaped the business before this quarter
The company underwent a transformational merger with DHFL in September 2021, which served as the foundation for building its multi-product retail lending franchise, expanding branch operations approximately 3x, and absorbing accumulated tax-loss benefits.
Since March 2022, the legacy stressed asset book inherited from DHFL has been systematically wound down by 96% down to INR 1,673 crore as of September 2026, with management planning to discontinue separate legacy disclosures after December 2026.
The company secured multiple domestic and international credit rating upgrades through FY26 and H1 FY27, including upgrades to AA+/Stable from Crisil, CareEdge, and ICRA, and rating improvements across international agencies.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Total income | ₹3,717.16 Cr | ₹3,429.54 Cr |
| Interest income | ₹3,253.46 Cr | ₹3,085.48 Cr |
| Other income | ₹57.97 Cr | ₹61.27 Cr |
| Provisions | ₹200.90 Cr | — |
| Profit before tax | ₹543.14 Cr | ₹344.12 Cr |
| Profit after tax | ₹545.42 Cr | ₹460.98 Cr |
| EPS | ₹23.68 | ₹20.38 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Interest income rose to INR 3,253.46 crore for Q2 FY27 from INR 3,085.48 crore in Q1 FY27, driven by robust loan book compounding and higher retail disbursements across mortgages, used cars, and unsecured segments.
Retail AUM scaled up to INR 97,462 crore, representing 86% of total AUM and growing 30% year-on-year, propelled by rapid branch expansion and deeper customer penetration.
Wholesale lending generated INR 2,615 crore in disbursements during Q2 FY27, accompanied by robust repayments and prepayments representing 72% of disbursements, reflecting strong borrower cash flows.
NIM, spread, funding cost and credit cost
Incremental cost of long-term borrowing averaged 8.46% in H1 FY27 compared with 8.67% in H2 FY26, benefiting from earlier credit rating upgrades and diverse funding instruments including mutual funds, ECBs, and securitisation.
Retail opex-to-AUM dropped by 41 basis points year-on-year to 3.48%, reflecting sustained efficiency gains and productivity enhancements across the expanded urban branch network.
Company net interest margin (NIM) remained stable at 6.5%, supported by disciplined pricing and proactive liability management amidst shifting market interest rates.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Total customer franchise expanded 26% year-on-year to 6.5 million, with cross-sell initiatives accounting for 30% of unsecured loan disbursements and 14% of total retail disbursements.
Wholesale lending maintained high granularity with an average outstanding ticket size of INR 55 crore and 211 deals sized below INR 100 crore.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Housing loans AUM expanded 16% year-on-year to INR 34,164 crore, representing 30% of total AUM, with an average ticket size of INR 24 lakh and stable asset quality at 0.6% 90+ DPD.
LAP AUM grew 43% year-on-year to INR 30,486 crore (27% of retail AUM), featuring an average ticket size of INR 29 lakh and stable 90+ DPD delinquency of 0.7%.
Salaried personal loans AUM reached INR 9,179 crore (+43% YoY), unsecured business loans reached INR 6,523 crore (+17% YoY), and digital loans surged 84% year-on-year to INR 6,299 crore.
Wholesale AUM reached INR 13,978 crore, comprising 68% real estate and 32% corporate mid-market loans (CMML), with Stage 2 and Stage 3 assets remaining below 0.1%.
Geography and market mix
The branch network expanded to 838 branches across 621 cities and 25 states, encompassing 535 urban branches, 203 rural branches, and 100 gold-focused branches.
Urban branch acquisitions showed that 81% of customers were acquired outside Tier-1 markets, demonstrating effective geographic decentralization and penetration into Tier-2 and Tier-3 cities.
07 · Asset quality & capital strength
How credit quality and balance-sheet capacity changed
Asset quality, stages and credit risk
Average monthly net disbursements per urban branch reached INR 25.0 lakh in September 2026, up 3x from INR 7.9 lakh in June 2026, as urban branches matured across vintages.
Rural micro-loan branches reached 203 locations across 6 states (Uttar Pradesh, Karnataka, Orissa, Tamil Nadu, Rajasthan, and Madhya Pradesh), supporting a micro-loan AUM of INR 1,762 crore.
08 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
The company accelerated its 'Piramal.ai' initiative, with 57% of overall code written by AI, and utilized conversational AI tools like PIA (Piramal Instant Assistant) for lead generation, customer onboarding, and digital collections.
Gold loan branches scaled to 100 locations by September 2026, with AUM reaching INR 65 crore and net disbursements accelerating to INR 59 crore during the quarter.
09 · Reported developments
What changed operationally
Successfully completed a total capital raise of INR 3,850 crore via a INR 2,100 crore QIP and a INR 1,750 crore preferential warrant allotment to the promoter group, elevating net worth to INR 31,180 crore.
Reported a consolidated GNPA ratio of 2.4% (down from 2.6% in Q2 FY26) alongside stable retail asset quality across all product segments.
10 · Pressure points & risks
What is not going smoothly
Although legacy DHFL-derived assets continued to decline smoothly, residual legacy exposure of INR 1,673 crore remains on the balance sheet, though fully provisioned with a INR 459 crore ECL pool.
11 · Items worth noticing
The line items that can distort a quick read
The company raised INR 3,850 crore in equity capital via QIP and promoter warrants during Q2 FY27, bolstering capital adequacy to 20.10%.
12 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Gross debt stood at INR 85,802 crore, supported by a diversified borrowing mix comprising 45% bank loans, 20% mutual funds, 6% external commercial borrowings (ECB), and 8% securitisation.
The company maintained strong liquidity with a period-end consolidated LCR of 553% (and an average LCR of 442%), significantly above regulatory requirements.
13 · Management guidance & targets
What management is targeting from here
Management indicated the company remains on track to meet its FY27 targets, including ~25% total AUM growth, ~50% consolidated PAT growth, and an annualized exit RoAUM of ~2.5%.
14 · Beyond the numbers
What changed beyond the numbers
Reported update
Digital Collections via PIA
Piramal Instant Assistant (PIA) processed INR 172 crore of digital collections in Q2 FY27 without human intervention, representing a 54% year-on-year increase.
Reported update
GenAI Email Automation
Automating routine service emails through GenAI achieved a 5x increase in cross-sell productivity per human agent compared to pre-automation levels.
15 · Previous-quarter changes
What changed since the previous quarter
Total AUM grew 6% sequentially from INR 95,369 crore in Q1 FY27 to INR 1,13,112 crore at the end of Q2 FY27.
Capital adequacy improved sequentially to 20.10% at the end of Q2 FY27 from 18.85% in Q1 FY27, following the capital raise.
16 · Key Q&A
The quarter, answered directly
What does Piramal Finance do?
Piramal Finance Limited operates as a diversified non-banking financial company (NBFC) in India, delivering a broad array of retail and wholesale lending solutions. Its portfolio spans housing loans, loans against property, used car financing, loans against securities, salaried and unsecured business loans, micro-finance, and corporate mid-market real estate lending.
What is the clearest takeaway from Q2 FY27?
Piramal Finance Limited reported consolidated revenue of INR 3,659.19 crore for the quarter ended September 30, 2026, marking an increase compared to the previous quarter's revenue of INR 3,368.27 crore. Total income for Q2 FY27 stood at INR 3,717.16 crore, up from INR 3,429.54 crore in Q1 FY27. Profit before tax (PBT) reached INR 543.14 crore, expanding sequentially from INR 344.12 crore. Consolidated profit after tax (PAT) rose to INR 545.42 crore compared with INR 460.98 crore in the preceding quarter, yielding basic earnings per share (EPS) of INR 23.68 compared to INR 20.38 in Q1 FY27.
What drove earnings or loan-book movement?
Interest income rose to INR 3,253.46 crore for Q2 FY27 from INR 3,085.48 crore in Q1 FY27, driven by robust loan book compounding and higher retail disbursements across mortgages, used cars, and unsecured segments.
What mattered most for margins, funding or credit cost?
Incremental cost of long-term borrowing averaged 8.46% in H1 FY27 compared with 8.67% in H2 FY26, benefiting from earlier credit rating upgrades and diverse funding instruments including mutual funds, ECBs, and securitisation.
What changed operationally beyond the headline numbers?
Average monthly net disbursements per urban branch reached INR 25.0 lakh in September 2026, up 3x from INR 7.9 lakh in June 2026, as urban branches matured across vintages.
What is management guiding or targeting from here?
Management indicated the company remains on track to meet its FY27 targets, including ~25% total AUM growth, ~50% consolidated PAT growth, and an annualized exit RoAUM of ~2.5%.
17 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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18 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
FY27 Guidance Track: Monitor second-half performance against full-year targets of ~25% AUM growth and ~2.5% exit RoAUM.
- 02
Legacy Disclosure Transition: Track management's plan to conclude separate legacy asset disclosures following the December 2026 quarter.
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