Piramal Finance Limited – Investor Presentation Summary

Key Operational Highlights

  • Total AUM reached USD 11,257 Mn with 85% retail mix and 518 branches
  • Retail AUM grew 32% YoY with disbursements up 44% YoY
  • Customer franchise expanded 24% YoY to 6 Mn customers
  • 90+ DPD remains stable at 0.7% for retail portfolio
  • Key drivers: Branch network expansion, product diversification, and Piramal.ai technology deployment

Segment-wise Performance

Retail Lending:

  • Comprises 85% of total AUM
  • Stable yield of ~13.6% (excl. fees)
  • Products include HL, LAP, UCL, Business Loans, Salaried PL, and Digital Loans
  • Used car loans and gold loans showing strong growth
  • Unsecured products grew significantly: Business Loans +53% YoY disbursements, Salaried PL +48% YoY

Wholesale 2.0:

  • Portfolio EIR of 14.2%
  • Since Q2 FY22: Disbursed USD 2,959 Mn across 419 loans, received repayments of USD 1,562 Mn
  • Q1 FY27 prepayments: USD 108 Mn
  • Repayment rate: 74% of disbursements

Legacy Business:

  • Reduced to ~2% of total AUM
  • Demonstrated accelerated rundown

Financial Highlights

Q1 FY27 Performance:

  • Revenue: Not explicitly stated in USD terms
  • PAT: USD 159 Mn (47% YoY growth)
  • Total Income: USD 590 Mn (37% YoY growth)
  • Pre-provision operating profit (PPOP): USD 241 Mn (89% YoY growth)
  • NIM: Growth business at 6.8%, Consolidated at 6.5%
  • Drivers: Higher revenue growth, operational efficiencies, stable credit costs

Geographical Revenue Split

  • Domestic vs Export: Not explicitly specified
  • Focus on Tier 2 & 3 geographies (Bharat markets)
  • Urban branch network represents 91% of total retail AUM

Balance Sheet Snapshot

  • Net Worth: USD 3,043 Mn
  • Gross Debt: USD 8,668 Mn
  • Debt/Equity: 2.8x
  • Capital Adequacy: 18.9%
  • GNPA: 2.4% / NNPA: 1.6%
  • Cash & liquid investments: USD 729 Mn
  • Financial Health: Strong capitalization levels, low leverage

Capex & Cash Flow Health

  • Capital Expenditure: Not specified
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Investment Rationale: Focus on technology upgrades, capacity expansion, and market expansion

Strategic & R&D Initiatives

Piramal.ai Strategy:

  • 40+ AI use cases deployed organization-wide
  • Gen-AI usage grew more than 5x in last year
  • Key applications: ARYA work assistant, AI-driven sales assistance, fraud detection, hands-free collections
  • USD 3.47 Mn quarterly disbursements through voice bots
  • 43% inbound emails responded by AI

Emerging Rural Strategy:

  • Micro-loan as first product in rural strategy
  • 99% of rural loans originated are 1st round loans
  • Average ticket sizes: USD 421-842 for various rural purposes

Industry Trends & Business Environment

  • Macro Trends: Growing demand in underpenetrated real estate and corporate mid-market lending
  • Impact: Strong repayment environment for borrower cashflows, stable asset quality

Management Commentary & Growth Outlook

  • Strategic Outlook: Building sustainable lending franchise through technology and personal touch
  • Guidance: Expect credit cost to remain range-bound, in line with long-term guidance
  • Market Share: Focus on underserved Bharat markets in Tier 2 and 3 geographies
  • Risks: Stable portfolio quality with 90+ DPD at 0.7%, overall credit costs remain stable

ESG Updates

  • Strong ESG framework implemented
  • Piramal Foundation impacted 143+ Mn lives across 27 states in India
  • Key partners: Gates Foundation, NITI Aayog, Harvard University