Piramal Finance LimitedQ1 FY27 Results & Financial Update
Piramal Finance Limited: Q1 FY27 consolidated results and company financials – revenue ₹3,368.27 Cr, PAT ₹460.98 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 Q1 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 posted a consolidated profit after tax (PAT) of INR 460.98 crore for the quarter ended June 30, 2026 (Q1 FY27), alongside total income of INR 3,429.54 crore and revenue from operations of INR 3,368.27 crore. Profit before tax (PBT) for the quarter stood at INR 344.12 crore after factoring in finance costs of INR 1,733.86 crore and depreciation of INR 56.03 crore.
Total Assets under Management (AUM) reached INR 1,06,940 crore, reflecting a 25% year-on-year expansion, driven primarily by strong momentum in the retail segment which grew 32% year-on-year to INR 91,249 crore. The retail-to-wholesale AUM mix shifted further toward retail, standing at 85:15 compared with 80:20 in June 2025.
Growth business profitability showed solid progress, with the growth book delivering a RoAUM of 1.9% and PPOP growing robustly as operating leverage continued to play out. Net interest margin (NIM) on the lending book remained stable sequentially at 6.5%, up 47 basis points compared to the same period last year.
Operating efficiency improved steadily, with the company's cost-to-income ratio dropping to 52.5% from 65.6% in Q1 FY26, and retail opex-to-AUM declining by 66 basis points year-on-year to 3.5%. The average cost of borrowings (CoB) remained controlled at 8.8%, showing stable sequential performance.
Asset quality exhibited steady improvement, with overall gross non-performing assets (GNPA) declining to 2.4% from 2.8% in Q1 FY26, while retail 90+ days past due (DPD) delinquency remained tightly controlled at 0.7%. Growth business credit cost stood at 1.6%.
The company's liquidity position remained robust, backed by cash and liquid investments of INR 6,925 crore, representing approximately 6% of total assets, and an average liquidity coverage ratio (LCR) of 553%. Total borrowings stood at INR 82,345 crore with a debt-to-equity ratio of 2.8x.
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 suite of retail and wholesale lending products across urban and rural geographies.
The company's revenue model relies on interest income generated from its expanding loan portfolio, fee and commission income, and treasury returns, balanced against wholesale and retail borrowing costs.
Retail lending constitutes the core engine of the business, spanning housing loans, loans against property (LAP), used car loans, salaried personal loans, unsecured business loans, micro-loans, and newly initiated gold loans.
Wholesale operations encompass real estate financing and corporate mid-market loans (CMML), maintaining a granular and cash-flow-backed asset structure while systematically scaling down legacy portfolios.
02 · Historical context
What shaped the business before this quarter
Historical information prior to September 2025 reflects figures previously disclosed by Piramal Enterprises before the formal merger and restructuring into Piramal Finance Limited.
The company successfully scaled down its legacy wholesale business over prior years, reducing legacy AUM to approximately 2% of total AUM by Q1 FY27, down 94% since March 2022.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Total income | ₹3,429.54 Cr |
| Interest income | ₹3,085.48 Cr |
| Other income | ₹61.27 Cr |
| Profit before tax | ₹344.12 Cr |
| Profit after tax | ₹460.98 Cr |
| EPS | ₹20.38 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Driven by a 32% year-on-year increase in retail AUM to INR 91,249 crore, fueled by strong disbursements across housing loans, LAP, and unsecured products.
Interest income reached INR 3,085.48 crore for the quarter, supported by a balanced asset mix and stable lending yields across retail and wholesale segments.
Other income contributed INR 61.27 crore to the quarterly total, alongside core fee and commission streams from loan processing and distribution.
NIM, spread, funding cost and credit cost
Average cost of borrowings (CoB) remained stable at 8.8% for Q1 FY27, benefiting from diversified funding sources including mutual funds, ECB, and securitisation.
Retail opex-to-AUM dropped to 3.5% (down ~300 bps over three years), while overall company cost-to-income improved to 52.5% from 65.6% in Q1 FY26.
Lending book NIM stood at 6.5%, up 47 bps year-on-year, supported by higher-yielding retail segments and an optimised asset mix.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Total customer franchise expanded 24% year-on-year to 6.0 million customers, with cross-sell initiatives contributing 28% of unsecured disbursements.
The median urban retail customer earned INR 49,000 monthly, with 56% self-employed and an average CIBIL score exceeding 750 across key retail products.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
AUM reached INR 91,249 crore (up 32% YoY), representing 85% of total AUM, anchored by mortgages (Housing and LAP at INR 61,199 crore) and unsecured offerings.
AUM stood at INR 13,238 crore (up 27% YoY), comprising 70% real estate and 30% corporate mid-market loans (CMML), maintaining a portfolio EIR of 14.2%.
Micro-loan AUM expanded 101% year-on-year to INR 1,547 crore, operating across 178 rural branches in Uttar Pradesh, Karnataka, Orissa, and Tamil Nadu.
Geography and market mix
The physical network expanded to 780 branches across 607 cities and 26 states, including 535 urban branches, 178 rural branches, and 67 gold loan branches.
Approximately 82% of customers acquired through urban branches were located outside tier-1 markets, maintaining healthy portfolio yields.
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
Completed phase 1 rollout of the gold loan business reaching 67 branches in Q1 FY27, with disbursements reaching INR 6 crore in its first full month of operation (June 2026) and an average ticket size of INR 85,000.
Leveraged proprietary AI tools across 15 core use cases, including credit assessment copilots, automated bank statement analysis, and voice-AI collections totaling INR 1,019 crore.
08 · Reported developments
What changed operationally
Consolidated PAT grew 67% year-on-year to INR 460.98 crore, reflecting scale benefits and lower relative provisioning costs.
GNPA ratio improved to 2.4% from 2.8% in Q1 FY26, while retail 90+ DPD remained exceptionally stable at 0.7%.
09 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Gross debt stood at INR 82,345 crore, diversified across bank loans (45%), NCDs/bonds (31%), ECBs (19%), and securitisation/mutual funds.
Maintained positive asset-liability management (ALM) gaps across all buckets, with an average LCR of 553% and cash and liquid investments of INR 6,925 crore.
10 · Beyond the numbers
What changed beyond the numbers
Reported update
Launch of AI Investor Assistant (Pia)
Launched 'Pia' (Piramal Investor Assistant), an AI-powered investor relations agent designed to parse financial statements and synthesize historical earnings call transcripts.
11 · 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 suite of retail and wholesale lending products across urban and rural geographies.
What is the clearest takeaway from Q1 FY27?
Piramal Finance Limited posted a consolidated profit after tax (PAT) of INR 460.98 crore for the quarter ended June 30, 2026 (Q1 FY27), alongside total income of INR 3,429.54 crore and revenue from operations of INR 3,368.27 crore. Profit before tax (PBT) for the quarter stood at INR 344.12 crore after factoring in finance costs of INR 1,733.86 crore and depreciation of INR 56.03 crore.
What drove earnings or loan-book movement?
Driven by a 32% year-on-year increase in retail AUM to INR 91,249 crore, fueled by strong disbursements across housing loans, LAP, and unsecured products.
What mattered most for margins, funding or credit cost?
Average cost of borrowings (CoB) remained stable at 8.8% for Q1 FY27, benefiting from diversified funding sources including mutual funds, ECB, and securitisation.
What changed operationally beyond the headline numbers?
Completed phase 1 rollout of the gold loan business reaching 67 branches in Q1 FY27, with disbursements reaching INR 6 crore in its first full month of operation (June 2026) and an average ticket size of INR 85,000.
What should the next disclosure help confirm?
Track the sustained expansion of retail AUM toward the medium-term targets and the continued reduction in opex-to-AUM ratios.
12 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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13 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Retail AUM Growth Trajectory: Track the sustained expansion of retail AUM toward the medium-term targets and the continued reduction in opex-to-AUM ratios.
- 02
Gold Loan Branch Scaling: Monitor the execution of phase 2 expansion for the gold loan vertical towards the targeted 200 branches by the end of FY27.
- 03
Asset Quality and Credit Costs: Evaluate the trajectory of credit costs and stage 2/3 asset classification across both retail and wholesale books.
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