Piramal Finance delivered exceptional Q2 results with consolidated net profit attributable to owners surging 67% year-on-year to ₹545 crore compared to ₹327 crore in the corresponding quarter last year. According to The Economic Times, profit increased 18% sequentially from ₹461 crore in the June quarter. The company's revenue from operations rose 33% to ₹1,767 crore from the previous year, with total income increasing 33% to ₹1,767 crore. Pre-provision operating profit (PPOP) increased 64% to ₹846 crore from ₹515 crore in the corresponding quarter last year. Other income rose 20% to ₹237 crore, comprising fee and commission income of ₹131 crore, dividend income of ₹10 crore and ₹96 crore from other sources.
The company's core net interest income grew 35% to ₹1,530 crore due to 24% growth in assets under management (AUM) and 0.35% expansion in net income margin to 6.5%. As reported by Business Standard, this strong performance was driven by core income growth and improvements in cost efficiency. The cost-to-income ratio improved sharply to 52.1% during the reporting quarter from 61.2% in the September 2025 quarter, demonstrating enhanced operational efficiency. Net interest margin expanded 35 basis points to 6.5%, while cost of borrowing stood at 8.79%. The company's gross non-performing assets ratio remained stable at 2.4% as of September 2026.
Piramal Finance achieved healthy asset quality with gross non-performing assets at 2.4% and net non-performing assets at 1.7%. According to Business Standard, loan-loss provisions and fair-value losses rose 22% to ₹302 crore from ₹248 crore in the previous year. The company noted that AUM growth would have been higher, but for the elevated level of repayments ahead of contracted terms that it saw, with nearly 70% of fresh disbursals being repaid during the quarter. Realty sector AUM growth for the quarter stood at about 7%, which would have been up to 25% if not for the repayments. Managing Director Jairam Sridharan emphasized that the company has not witnessed any stress in any segment, despite concerns raised on the impact from small business loans for financiers due to the West Asia crisis and the agricultural sector due to the El Nino factor.
Jairam Sridharan expressed confidence that the company will be able to expand NIMs by up to 0.20% over the next year, despite the rising interest rate environment. As reported by Business Standard, Sridharan explained that the rating upgrade recently received will help reduce the cost of borrowing over the next 2-3 years and expand margins. The company's return on assets stood at 2% during the quarter. Jairam Sridharan, MD and CEO, warned that if proposed insurance guidelines on distribution commissions are implemented in their current form, the company's return on assets could decline by 18-24 basis points in FY28. Despite this potential impact, the company remains confident of meeting its FY27 net profit growth guidance of 50% year-on-year.
The company successfully completed an equity capital raise of ₹3,850 crore, comprising a qualified institutional placement of ₹2,100 crore and a preferential allotment of ₹1,750 crore of warrants to the promoter group. As reported by The Economic Times, Piramal Finance also announced the appointment of Dinesh Kumar Khara, former Chairman of the State Bank of India, as an independent director for a five-year term. Chairman Anand Piramal highlighted the company's transformation into a diversified, retail-led financial institution serving around 6.5 million customers, marking five years since the merger with Dewan Housing Finance Corporation. The Piramal Finance scrip closed 0.08% down at ₹1,948.05 apiece on the BSE on Monday following the results announcement.
