Piramal Finance Q1 FY27 profit rises 67% as retail lending expands

Piramal Finance Ltd reported consolidated net profit of Rs 461 crore in Q1 FY27, up 67% year-on-year.

Total assets under management reached Rs 1,06,940 crore, growing 25% year-on-year, while retail AUM increased 32% to Rs 91,249 crore.

Reader Takeaway: Strong retail growth supports earnings, but maintaining credit quality during expansion remains key.

What just happened

Piramal Finance delivered higher profitability during the quarter, supported by growth in lending operations and improved operating efficiency.

Total income rose 37% year-on-year to Rs 1,693 crore, while net interest income increased 43% to Rs 1,442 crore.

The growth business reported profit before tax of Rs 470 crore, a 59% increase from the year-ago period. Net interest margin improved to 6.5%, up 47 basis points year-on-year.

Why this matters

Retail lending remained the main growth engine for Piramal Finance. Retail assets accounted for 85% of total AUM, highlighting the company’s continued shift towards consumer-focused lending.

Mortgage assets, including home loans and loans against property, reached Rs 61,199 crore, growing 30% year-on-year and contributing 67% of retail AUM.

Operating efficiency also improved. The company-wide cost-to-income ratio declined to 52.5% from 65.6% in Q1 FY26, while retail operating expenses to AUM reduced by 66 basis points year-on-year to 3.5%.

Asset quality and new businesses

Piramal Finance maintained stable asset quality during the quarter. Gross non-performing assets stood at 2.4%, improving from 2.8% in Q1 FY26.

The company also expanded into gold loans during the quarter. It had 67 branches operational by June 2026 and reported Rs 6 crore in disbursements during its first full month of operations. The company plans to expand the gold loan network to 200 branches by the end of FY27.

Balance sheet position

As of June 30, 2026, Piramal Finance held Rs 6,925 crore in cash and equivalents, representing about 6% of assets.

Net worth stood at Rs 28,906 crore, while gross debt was Rs 82,345 crore, up 20% year-on-year. The debt-to-equity ratio stood at 2.8 times, and average liquidity coverage ratio was reported at 553%.

What to track next

Investors will focus on the scaling of the gold loan business, future asset quality trends and whether the company can maintain profitability while expanding its retail lending portfolio.