Piramal Finance Q2 PAT Rises 67% to ₹545 Crore

Profitability:

Q2 FY27 Profit After Tax (PAT) stood at ₹545 crore, a 67% increase year-on-year (YoY) from ₹327 crore in Q2 FY26.
H1 FY27 PAT was ₹1,006 crore, also up 67% YoY from ₹603 crore.
Profit Before Tax (PBT) for Q2 FY27 was ₹580 crore, a 76% increase YoY.
Net Interest Income (NII) was ₹1,530 crore in Q2 FY27, up 35% YoY.
Net Income Margin expanded by 35 basis points (bps) YoY to 6.5% and remained stable quarter-on-quarter (QoQ).
Cost-to-Income ratio improved to 52.1% from 61.2% in Q2 FY26.
Growth business Return on AUM (RoAUM) improved to 2.0% from 1.7% in Q2 FY26.
Growth business Profit Before Tax was ₹538 crore.

Assets Under Management (AUM):

Total AUM grew 24% YoY to ₹1,13,112 crore.
Retail AUM grew 30% YoY to ₹97,462 crore, constituting 86% of total AUM.
Wholesale AUM grew 24% YoY to ₹13,978 crore.
Within Retail, Mortgage AUM (Housing Loans and Loan Against Property) grew 27% YoY to ₹64,650 crore, forming 66% of Retail AUM.

Disbursements:

Asset Quality:

Gross Non-Performing Assets (GNPA) ratio was stable at 2.4%.
Net Non-Performing Assets (NNPA) ratio was stable at 1.7%.
Retail 90+ Days Past Due (DPD) delinquency stood at 0.7%.
Growth business Credit Cost was stable at 1.5%.
Wholesale repayments (including pre-payments) were ₹1,889 crore in Q2 FY27, representing 72% of disbursements.

Liabilities and Capital:

Cost of Borrowing was stable QoQ at 8.79% for Q2 FY27.
Incremental cost of long-term debt declined to 8.46% in H1 FY27 from 8.67% in H2 FY26, following a rating upgrade.
Net worth stood at ₹31,180 crore.
Cash and equivalents were ₹6,899 crore, representing 6% of assets.
AUM-to-Equity ratio was 3.6x.
Average Liquidity Coverage Ratio (LCR) was 442%.

The company completed an equity capital raise of ₹3,850 crore.
This comprised a Qualified Institutions Placement (QIP) of ₹2,100 crore.
And a preferential allotment of ₹1,750 crore of warrants to the promoter group.
The purpose was to strengthen the capital base to support future retail-led growth.

Mr. Dinesh Kumar Khara, former Chairman of the State Bank of India (SBI), was appointed as an Independent Director for a five-year term.

Scale and Reach:

The company's branch network expanded to 838 branches across 621 cities in 25 states.
The customer base grew 26% YoY to 6.5 million.

Yields and Costs:

Retail disbursement yields remained stable at 14.2%.
Wholesale Effective Interest Rate (EIR) was 14.1% with an average ticket size of ₹55 crore.
Retail Opex-to-AUM declined 41 bps YoY to 3.48%.

Piramal.ai (AI Integration):

GenAI token consumption rose to 476 billion in Q2 FY27 from 91 billion in Q2 FY26.
AI now generates 57% of the overall code.
Disbursement per branch increased 17% YoY; disbursement per employee rose 10% YoY.
AI-enabled hiring supported interviews for over 2,600 relationship managers.
Voice AI enabled ₹102 crore in cross-sell disbursements.
The AI work assistant ARYA resolved approximately 5.6 lakh queries, up 45% YoY.
Launched PIA (Piramal Investor Assistant), an AI-powered investor relations agent.
AI analysed ~1.94 lakh bank statements and processed 2.13 lakh images for credit decisions.
Document fraud intelligence scanned over 6 lakh documents.
Monthly hands-free collections increased over 2.5x YoY to ₹754 crore.
Over 20.8 lakh documents were identified for masking/Aadhaar masking, up 59% YoY.
74% of customer resolutions were handled through automated channels (WhatsApp, Mobile app, email).
41% of customer onboardings were handled by live voice and chat bots.

| Particulars | Q2 FY27 | Q2 FY26 | YoY % | Q1 FY27 | QoQ % | H1 FY27 | H1 FY26 | YoY % |

| Interest income | 3,358 | 2,702 | 24% | 3,174 | 6% | 6,532 | 5,206 | 25% |

| Less: Interest expense | 1,828 | 1,570 | 16% | 1,736 | 5% | 3,564 | 3,064 | 16% |

| Net interest income | 1,530 | 1,132 | 35% | 1,438 | 6% | 2,968 | 2,142 | 39% |

| Other income | 237 | 196 | 20% | 251 | -6% | 487 | 424 | 15% |

| Fee & commission | 131 | 121 | 9% | 127 | 3% | 258 | 235 | 10% |

| Dividend | 10 | 9 | 5% | 18 | -48% | 28 | 24 | 16% |

| Others | 96 | 67 | 44% | 106 | -9% | 202 | 165 | 22% |

| Total income | 1,767 | 1,328 | 33% | 1,689 | 5% | 3,455 | 2,566 | 35% |

| Less: Operating expenses | 921 | 813 | 13% | 889 | 4% | 1,811 | 1,625 | 11% |

| Pre-provision operating profit (PPOP) | 846 | 515 | 64% | 799 | 6% | 1,645 | 940 | 75% |

| Less: Loan loss provisions & FV loss/(gain) | 302 | 248 | 22% | 455 | -34% | 757 | 451 | 68% |

| Profit before tax & associate income | 543 | 267 | 103% | 344 | 58% | 887 | 490 | 81% |

| Add: Associate income | 37 | 63 | -41% | 99 | -63% | 136 | 141 | -4% |

| of which: Alternatives | 49 | 87 | -43% | 82 | -40% | 132 | 157 | -16% |

| Pramerica Life Insurance | -12 | -24 | 48% | 17 | -171% | 4 | -15 | 127% |

| Profit before tax | 580 | 330 | 76% | 443 | 31% | 1,023 | 631 | 62% |

| Less: Tax | 35 | -78 | - | -18 | - | 17 | -53 | - |

| Less: Exceptionals | 0 | -81 | - | 0 | - | 0 | -81 | - |

| Profit after tax | 545 | 327 | 67% | 461 | 18% | 1,006 | 603 | 67% |

Notes:

Interest Income includes Direct Assignment (DA) upfront income of ₹82 Cr in Q2FY27, ₹112 Cr in Q2FY26 and ₹85 Cr in Q1FY27.
Exceptionals for Q2FY26 included merger-related expenses (₹60 Cr) and a one-off tax expense (₹21 Cr).

The full press release is available on the company's website at www.piramalfinance.com.