News ArticlePiramal Finance Limited Reports 67% Profit Growth and 24% AUM Rise in Q2 FY27
Retail AUM up 30% YoY to ₹97,462 crore; Company raises ₹3,850 crore capital via QIP and warrants
Piramal Finance Limited announced its Q2 FY27 financial results, highlighting a 67% year-on-year rise in profit after tax to ₹545 crore and a 24% increase in assets under management to ₹1,13,112 crore. The retail portfolio grew 30% YoY to ₹97,462 crore, while net interest margin improved by 35 basis points to 6.5%. The company also completed a ₹3,850 crore capital raise to support growth targets and maintained stable asset quality with GNPA at 2.4%.
Piramal Finance Limited
Investor Presentation
Piramal Finance Limited announced a 67% year-on-year increase in profit after tax to ₹545 crore for the second quarter of fiscal year 2027, supported by a 24% rise in assets under management (AUM) to ₹1,13,112 crore. The retail segment showed strong growth with AUM up 30% to ₹97,462 crore, while the net interest margin improved to 6.5%. The company also raised ₹3,850 crore through a qualified institutional placement and preferential allotment.
Piramal Finance Limited’s Q2 FY27 financial update shows significant growth with total AUM increasing 24% year-on-year to ₹1,13,112 crore, underpinned by a 30% rise in retail AUM to ₹97,462 crore. The wholesale segment constituted 14% of the total AUM.
Net interest margin (NIM) improved by 35 basis points year-on-year, reaching 6.5%, while the company maintained stable borrowing costs with an incremental borrowing rate of 8.46% in H1 FY27 against 8.67% in H2 FY26.
Operating efficiencies improved as retail operating expenses to AUM ratio fell by 41 basis points year-on-year to 3.48%, contributing to a reduced overall cost-to-income ratio of 52.1%, down from 61.2% in Q2 FY26.
Piramal Finance raised ₹3,850 crore in capital through a qualified institutional placement (QIP) of ₹2,100 crore and a preferential allotment of ₹1,750 crore warrants to the promoter group, strengthening its capital adequacy to support asset growth.
Asset quality remained stable with a gross non-performing asset (GNPA) ratio of 2.4%, improved from 2.6% in Q2 FY26, and the credit cost for the growth business held steady at 1.5%. The return on average assets under management (RoAUM) for the growth business rose to 2.0% from 1.7% in the prior year period.
Highlights
- Profit after tax (PAT) increased 67% year-on-year to ₹545 crore in Q2 FY27.
- Total AUM grew 24% year-on-year to ₹1,13,112 crore; retail AUM up 30% to ₹97,462 crore.
- Net interest margin (NIM) improved by 35 basis points to 6.5%.
- Operating expenses to retail AUM decreased by 41 basis points to 3.48%.
- Cost-to-income ratio reduced to 52.1% from 61.2% in Q2 FY26.
- Raised ₹3,850 crore through QIP and preferential warrants allotment in Q2 FY27 to bolster capital base and growth plans at AUM-to-equity ratio of 3.6x. Stable asset quality with GNPA at 2.4% and growth business credit cost at 1.5%.
Key Data Snapshot
What happened
- Piramal Finance Limited released its financial results for the second quarter ended September 2026 (Q2 FY27).
- The company reported strong profit growth and asset expansion during the quarter.
- A significant capital raise of ₹3,850 crore was completed to support growth initiatives.
Key details
- Total AUM increased by 24% year-over-year, reaching ₹1,13,112 crore.
- Retail loans constituted 86% of AUM and grew 30% year-on-year to ₹97,462 crore.
- Net interest margin improved by 35 basis points to 6.5%, reflecting favorable funding costs and portfolio mix.
- Operating expenses relative to retail AUM declined by 41 basis points to 3.48%, and overall cost-to-income improved to 52.1%.
- Capital infusion comprised ₹2,100 crore via QIP and ₹1,750 crore through preferential allotment of warrants to promoters.
- Asset quality was stable with GNPA at 2.4%, improved from 2.6% in the previous year, and credit cost steady at 1.5%.
Background and context
- Piramal Finance completed a transformative merger with DHFL in 2021 and has been scaling its retail and wholesale loan portfolios rapidly since.
- The company targets ₹1.5 lakh crore AUM by March 2028 with an AUM-to-equity leverage of 4.5–5.0x.
- The retail segment's growth outpaces legacy businesses whose AUM has declined significantly.
- Operational efficiencies and AI integration are part of the company’s blueprint to improve predictability and profitability.
Next milestones
- The company aims to sustain about 25% year-on-year AUM growth and reach RoAUM of approximately 2.5% by fiscal year end 2027.
- Continuation of disciplined risk management strategies to maintain asset quality below 2.5% GNPA.
- Execution of growth initiatives funded by the recent capital raise to further expand retail and wholesale loan books.
Highlights
- Profit after tax (PAT) increased 67% year-on-year to ₹545 crore in Q2 FY27.
- Total AUM grew 24% year-on-year to ₹1,13,112 crore; retail AUM up 30% to ₹97,462 crore.
- Net interest margin (NIM) improved by 35 basis points to 6.5%.
- Operating expenses to retail AUM decreased by 41 basis points to 3.48%.
- Cost-to-income ratio reduced to 52.1% from 61.2% in Q2 FY26.
- Raised ₹3,850 crore through QIP and preferential warrants allotment in Q2 FY27 to bolster capital base and growth plans at AUM-to-equity ratio of 3.6x. Stable asset quality with GNPA at 2.4% and growth business credit cost at 1.5%.
Disclosures
- Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Preferential allotment of warrants worth ₹1,750 crore to the promoter group
Source Information
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