Piramal Finance Reports 67% YoY Profit Growth in Q1 FY27; Board Approves ₹ 4,000 Crore Fund Raise
Piramal Finance Limited, a prominent Non-Banking Financial Company (NBFC), has announced its financial results for the first quarter ended June 30, 2026. The company reported a Profit After Tax (PAT) of ₹ 461 Cr, representing a significant 67% year-on-year (YoY) increase.The growth was underpinned by a 25% YoY rise in Assets Under Management (AUM) to ₹ 1,06,940 Cr. This expansion was primarily driven by a 32% YoY increase in Growth AUM, which excludes the discontinued legacy business. Retail disbursements saw a robust 44% YoY climb to ₹ 12,527 Cr, highlighting strong customer demand and business momentum.
In terms of operational reach, Piramal Finance expanded its presence to 780 branches across 607 cities in 26 states. The company’s customer franchise grew by 24% YoY, reaching a total of 6 million customers.
Capital Expansion Plans
The Board of Directors has approved a fund raise of up to ₹ 4,000 Cr. The company intends to initiate this fundraising at an appropriate time following shareholder approval.
Growth and Portfolio Diversification
Retail AUM now constitutes 85% of the total AUM, growing 32% YoY to ₹ 91,249 Cr. Within the retail segment, Mortgage 2 AUM grew by 30% YoY to ₹ 61,199 Cr, representing 57% of the total AUM and 67% of the Retail AUM.
The Wholesale 2.0 AUM grew 27% YoY to ₹ 13,238 Cr, with disbursements increasing 13% YoY to ₹ 2,604 Cr. The company received repayments (including pre-payments) totaling ₹ 1,932 Cr during the quarter.
Profitability and Efficiency Metrics
The company reported an expansion in Net Income Margin by 47 bps YoY to 6.5%. The Cost of Borrowing remained stable at 8.8% compared to the previous quarter. Significant improvements were noted in operational efficiency:
- Cost-to-Income fell to 52.5% in Q1 FY27, from 65.6% in Q1 FY26.
- Growth business RoAUM improved to 1.9% from 1.5% in the previous year.
- Growth business Opex to AUM declined to 3.3% from 3.9% in Q1 FY26.
Asset Quality and Liquidity
The company maintained stable asset quality with a GNPA of 2.4% and an NNPA of 1.6%. The net worth stands at ₹ 28,906 Cr, supported by strong liquidity including Cash & equivalents of ₹ 6,925 Cr (6% of assets).
AI Integration and Technological Advancement
Piramal Finance has significantly scaled its AI adoption through "Piramal.ai." Token usage rose more than five times YoY to 320bn in Q1 FY27. The integration of AI across underwriting, collections, and customer service resulted in:
- A nearly 12x increase in automated monthly collections to ₹ 1,019 Cr.
- The analysis of approximately 2.30 lakh bank statements, up from 70,000 in the previous year.
- Detection of over 18 lakh fraud cases, compared to 9.5 lakh in Q1 FY26.
- A reduction in customer complaints by nearly 90% over the last three years.
Financial Performance Summary Table (In ₹ Cr)
| Particulars | Q1 FY27 | Q1 FY26 | YoY % | QoQ % |
|---|---|---|---|---|
| Interest income Less: Interest expense | 3,179 1,736 | 2,504 1,494 | 27% 16% | 5% 4% |
| Net interest income | 1,442 | 1,010 | 43% | 6% |
| Fee & commission | 127 | 114 | 11% | 70% |
| Dividend | 18 | 15 | 23% | 14% |
| Other income | 251 | 227 | 10% | 29% |
| Total income | 1,693 | 1,237 | 37% | 9% |
| Operating expenses | 889 | 812 | 10% | 3% |
| Pre-provision operating profit (PPOP) | 804 | 425 | 89% | 16% |
| Profit before tax | 443 | 301 | 47% | - |
| Profit after tax | 461 | 276 | 67% | -8% |
K2INFRA Stock Price Movement
K2 Infragen Limited shares tumbled 2.68% today to settle at ₹56.25 after the market closed. The stock saw a trading volume of 4,800 shares as it retreated from an intraday high of ₹57.65.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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