Piramal Finance Limited filed its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026 (Q1 FY2027) with the stock exchanges via a press release.

Financial Performance Highlights

  • Profit After Tax (PAT) stood at ₹461 crore, an increase of 67% Year-on-Year (YoY) from ₹276 crore in Q1 FY2026. Sequentially, PAT was down 8% from ₹502 crore in Q4 FY2026.
  • Assets Under Management (AUM) grew 25% YoY to ₹1,06,940 crore.
  • Retail AUM grew 32% YoY to ₹91,249 crore, constituting 85% of total AUM.
  • Wholesale AUM grew 27% YoY to ₹13,238 crore.
  • Total Income was ₹1,693 crore, up 37% YoY from ₹1,237 crore.
  • Net Interest Income was ₹1,442 crore, up 43% YoY from ₹1,010 crore.
  • Pre-Provision Operating Profit (PPOP) was ₹804 crore, up 89% YoY from ₹425 crore.
  • Loan Loss Provisions & Fair Value Loss/(Gain) were ₹460 crore, up 127% YoY from ₹202 crore. The note clarifies that in Q1 FY2026, ECL rebalancing had a positive impact of about ₹105 crore.
  • Net Income Margin expanded by 47 basis points (bps) YoY to 6.5% and was stable quarter-on-quarter (QoQ).
  • Cost of Borrowing was stable QoQ at 8.8%, and was down 33 bps YoY.
  • Cost-to-Income ratio stood at 52.5% in Q1 FY2027, compared to 65.6% in Q1 FY2026.
  • Growth business RoAUM (pro forma) improved to 1.9% from 1.5% YoY.
  • Growth business Profit Before Tax (pro forma) was ₹470 crore.

Operational and Business Highlights

  • Retail Disbursements rose 44% YoY to ₹12,527 crore.
  • Wholesale Disbursements grew 13% YoY to ₹2,604 crore. Repayments (including pre-payments) of ₹1,932 crore were received during the quarter.
  • The company's nationwide footprint expanded to 780 branches across 607 cities in 26 states.
  • The customer franchise grew 24% YoY to 6 million customers.
  • Asset Quality remained stable.
  • Gross NPA (GNPA) was 2.4%.
  • Net NPA (NNPA) was 1.6%.
  • Retail 90+ Days Past Due (DPD) stood at 0.7%.
  • Liquidity and Capital
  • Networth stood at ₹28,906 crore.
  • Cash & equivalents were ₹6,925 crore, representing 6% of assets.
  • AUM-to-Equity ratio was 3.7x.
  • Average Liquidity Coverage Ratio (LCR) was 553%.

Corporate Action: Fund Raise

The Board of Directors approved a fund raise of up to ₹4,000 crore. The company plans to raise this amount at an appropriate time post shareholder approval.

Management Commentary

Anand Piramal, Chairman, stated that the performance reflects the strength of the franchise and reinforced confidence in delivering the guidance on AUM growth, PAT growth, and RoAUM shared at the beginning of the year. He highlighted the company's agility, scale, and diversified portfolio as key strengths.

Piramal.ai – AI Integration Update

The company provided a detailed update on its AI adoption, branded 'Piramal.ai':

  • Total AI token usage rose more than 5x YoY to 320 billion tokens in Q1 FY2027.
  • AI analysed ~2.30 lakh bank statements in the quarter, up from ~70,000 YoY.
  • AI agents flagged over 18 lakh potential fraud cases in the quarter.
  • AI-driven, hands-free monthly collections increased nearly 12x to ₹1,019 crore per month.
  • AI now resolves ~43% of inbound customer emails and contributes ~32% of total customer onboardings.
  • 57% of overall code is now written by AI.
  • Over 4,366 Relationship Managers were interviewed using AI in the quarter.

Credit Ratings

The company has been assigned an issuer rating of 'BBB, Stable' from Japanese credit rating agencies Rating and Investment Information, Inc. and Japan Credit Rating Agency, Ltd., which is noted as one notch below the sovereign rating. Domestically, the company is rated 'AA+' with a 'Stable' Outlook by CRISIL, ICRA, and CARE.