Piramal Finance IRDAI Rule Change Impact Assessment

Date: 24th September, 2026

Insurance Commission Income Update:

In FY26, the Company earned approximately ₹200 crore of Insurance Commission Income
Life insurance accounted for approximately ₹140 crore of this Insurance Commission Income
Non-life insurance accounted for approximately ₹60 crore of this Insurance Commission Income

Business Relationships:

The Company currently exclusively distributes life insurance products of Pramerica Life Insurance (PLI)
Piramal Finance Limited (PFL) is the promoter and a 50% owner of PLI through its wholly owned subsidiary DHFL Investments Limited

Regulatory Impact Assessment:

IRDAI released a consultation paper on 23rd September 2026 titled "Recalibrating Economics of Insurance Distribution"
If implemented as is with an effective date of 1st April 2027, the Company estimates the reduction in Insurance Commission Income could have an 18-24bps impact on FY28e RoA, keeping everything else unchanged

Risk Mitigation Factors:

As a promoter of PLI, the Company has a natural hedge at the consolidated P&L level against any changes in earned life insurance commission income
Any improvement in economics of Pramerica Life Insurance will flow through proportionately to Piramal Finance during consolidation
The Company believes there are levers available (e.g., rationalization of sales incentives and other forms of product clawbacks) to significantly cushion any impact of potential reduction in Insurance Commission Income on total profitability of PFL in FY28e and onwards

Guidance Confirmation:

The Company remains confident of meeting its earlier stated FY27e net profit growth guidance of approximately 50% YoY, irrespective of any potential change in Insurance Commission Income