Piramal Finance shares jump 4% as Q2 profit rises 67% YoY to Rs 545 crore, NII jumps 35% YoY

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Piramal Finance continues to scale GenAI adoption through Piramal.ai.

According to a filing with the exchange, the profit after tax in H1 FY2027 stands at Rs 1,006 crore. Assets Under Management (AUM) increased 24% yoy to Rs 1.13 lakh crore, driven by 30% yoy increase in growth AUM, which excludes the discontinued legacy business.

The retail AUM went up 30% year on year to Rs 97,462 crore whereas the wholesale AUM went up 24% to Rs 13,978 crore.

Also Read | Piramal Finance Q2 net profit soars 67% to Rs 545 crore

The retail disbursements increased 34% yoy to Rs 14,646 crore, reflecting sustained customer demand and continued business momentum. The company also said that its nationwide footprint expanded to 838 branches across 621 cities in 25 states, while its customer franchise grew 26% yoy to 6.5 million, further strengthening its presence across India.

The company completed an equity capital raise of Rs 3,850 crore, comprising a QIP of Rs 2,100 crore and a preferential allotment of Rs 1,750 crore of warrants to the promoter group, strengthening its capital base to support future retail-led growth.

The Q2FY27 Cost of Borrowing was stable 8.79% QoQ. The company said that since their rating upgrade in FY26, our incremental cost of long-term debt has declined to 8.46% in H1 FY27 vs 8.67% in H2 FY26. The Cost-to-Income stood at 52.1%, vs 61.2% in Q2 FY26.

The company continues diversification of borrowing mix across mutual funds, securitization and international borrowings. The ALM remains well-matched with positive gaps across all buckets

The net worth stands at Rs 31,180 crore with strong liquidity. The cash & equivalents stands at Rs 6,899 crore which is 6% of assets and the AUM-to-Equity at 3.6x and Average LCR of 442%.

"Q2 marks another quarter of consistent performance across growth, profitability and predictability, with our Growth AUM increasing 30% yoy. We are encouraged by the confidence shown in us through our first capital raise as Piramal Finance, including strong participation from domestic and global investors,” said Anand Piramal, Chairman, Piramal Finance.

This quarter also marks five years since the DHFL merger, the chairman said, adding that it is an important milestone in the company's transformation into a diversified, retail-led financial institution serving around 6.5 million customers across India.

“We are grateful for their trust and recognise the responsibility that comes with this scale. As we grow, our focus remains on expanding responsible access to formal credit, combining our physical network with technology and AI to serve customers better. We remain committed to delivering sustained, profitable growth and building a strong and sustainable institution for the long term,” he further said.

The growth business RoAUM improved to 2.0%, vs 1.7% in Q2 FY26. Growth business Opex to AUM declined to 3.2%, vs 3.6% in Q2 FY26. And the growth business credit cost is stable at 1.5%. Growth business Profit Before Tax of Rs 538 crore.

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Piramal Finance continues to scale GenAI adoption through Piramal.ai, embedding AI across core business operations and moving beyond pilots to day-to-day integration. This is enhancing productivity, customer experience and decision-making across the organisation.

The monthly hands-free collections increased over 2.5x yoy to Rs 754 crore in Q2 FY27 from Rs 300 crore in Q2 FY26, reflecting the growing application of AI in collections operations.

Piramal Finance appoints former SBI-Chairman as Independent Director

Piramal Finance on Wednesday announced the appointment of Dinesh Kumar Khara, former Chairman of the State Bank of India (SBI), as an Independent Director for a five-year term, effective October 19, 2026.

“I am delighted to welcome Dinesh Kumar Khara to the Board of Piramal Finance. During his distinguished career, particularly as Chairman of SBI, he strengthened one of India’s most important financial institutions and expanded access to formal banking and credit for millions of Indians, while nearly tripling SBI’s annual net profit to Rs 61,077 crore, growing its loan book by over 50% to approximately Rs 38 lakh crore and reducing its net NPA ratio by over 60%,” said Anand Piramal, Chairman, Piramal Finance.

“His commitment to responsible, inclusive finance strongly aligns with our purpose. His experience, judgement and deep understanding of financial services will be invaluable as Piramal Finance expands access to formal credit and advances its growth journey. We look forward to his counsel and guidance,” he further said.

Piramal Finance stock price movement

In the last one month, the stock went down 9.57%. In the current calendar year, the stock gained 22.07%.

Disclosure: This article has been written by Surbhi Khanna, who is not a SEBI-registered Research Analyst or an investment advisor . Surbhi Khanna does not hold any financial interest in Economic Times as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.