Piramal Finance Reports 67% YoY Growth in Profit for Q1 FY27; Board Approves ₹4,000 Crore Fund Raise

Piramal Finance Reports 67% YoY Growth in Profit for Q1 FY27; Board Approves ₹4,000 Crore Fund Raise​

Piramal Finance Limited has reported a significant surge in profitability for the first quarter of the fiscal year 2027. The Non-Banking Financial Company (NBFC) recorded a Profit After Tax (PAT) of ₹461 crore for the quarter ended June 30, 2026, marking a 67% increase compared to the same period last year.

The company's Assets Under Management (AUM) grew 25% Year-on-Year (YoY) to reach ₹1,06,940 crore. This growth was primarily driven by a 32% YoY rise in Growth AUM, which excludes the discontinued legacy business. Retail disbursements saw a substantial jump of 44% YoY to ₹12,527 crore, reflecting strong demand and sustained business momentum.

Strategic Expansion and Infrastructure​

Piramal Finance has expanded its nationwide footprint to include 780 branches across 607 cities in 26 states. The company’s customer franchise grew 24% YoY to reach 6 million customers. In addition to operational growth, the Board of Directors has approved a fund raise of up to ₹4,000 crore, which the company intends to initiate following shareholder approval.

Key Financial Highlights for Q1 FY27​

The company demonstrated strong operational efficiency and improved margins during the quarter. Notable highlights include:

Retail and Wholesale Performance​

Retail AUM now constitutes 85% of the total AUM. Within this segment, Mortgage 2 AUM grew 30% YoY to ₹61,199 crore. The company maintained stable retail disbursement yields at 14.2%.

In the wholesale segment, Wholesale 2.0 AUM grew 27% YoY to ₹13,238 crore. Disbursements in this category grew 13% YoY to ₹2,604 crore, while repayments and pre-payments of ₹1,932 crore were received during the quarter.

Technology and AI Integration​

A significant portion of the company’s growth is attributed to its "Piramal.ai" initiative, which integrates Generative AI into core operations. Token usage rose more than five times YoY to 320 billion tokens in Q1 FY27.

Key technological impacts include:

• Underwriting: AI analyzed approximately 2.30 lakh bank statements, up from 70,000 in the previous year.
• Fraud Detection: AI agents flagged over 18 lakh fraud cases compared to 9.5 lakh in Q1 FY26.
• Collections: AI-driven hands-free monthly collections increased nearly 12x to ₹1,019 crore per month.
• Operational Efficiency: Disbursement per branch increased 23% YoY, and 57% of the overall code is now written by AI.

Asset Quality and Liquidity​

The company maintains a stable asset quality profile with a GNPA of 2.4% and an NNPA of 1.6%. The net worth stands at ₹28,906 crore, with cash and equivalents amounting to ₹6,925 crore (6% of assets). The AUM-to-Equity ratio is currently at 3.7x with an average Liquidity Coverage Ratio (LCR) of 553%.

PIRAMALFIN Stock Price Movement​

Piramal Finance Limited shares rallied 0.88% today to settle at ₹2,186.50 in post-market trading. The stock reached its 52-week high during the session on a volume of 296,323 shares.