Piramal Finance reported a 67% increase in first-quarter profit to ₹461 crore as retail lending grew rapidly. The company’s board has approved a plan to raise up to ₹4,000 crore in capital, subject to shareholder approval, to support future lending expansion.
Piramal Finance Limited reported strong financial growth for the quarter ending June 30, 2026, with a Profit After Tax (PAT) of ₹461 crore, marking a 67% increase compared to the same period last year. The company’s performance was driven primarily by its ongoing shift toward retail-focused lending, which now accounts for a large majority of its total loan book.
Strategic Capital Infusion
The company’s board of directors has approved a plan to raise up to ₹4,000 crore through new capital. This proposal is currently pending approval from the company’s shareholders. For investors, this move signals management's intent to sustain the recent pace of growth by strengthening the balance sheet and increasing the capital available for new loan disbursements.
Retail Lending Performance
Total Assets Under Management (AUM) reached ₹1,06,940 crore, reflecting a 25% year-on-year growth. The retail portion of this book expanded by 32%, reaching ₹91,249 crore, and now makes up 85% of the total assets. Growth was particularly strong in the mortgage, gold loan, and small business credit segments, with total retail disbursements rising 44% to ₹12,527 crore. The mortgage business remains a cornerstone of the portfolio, contributing ₹61,199 crore to the total AUM.
Operational Efficiency and Asset Quality
The company showed improved operational efficiency, with the cost-to-income ratio dropping to 52.5% from 65.6% in the corresponding period of the previous year. Net interest income grew 43% to ₹1,442 crore, while total income rose 37% to ₹1,693 crore. On the asset quality front, gross non-performing assets stood at 2.4%, with net non-performing assets at 1.6%. The company’s net worth was recorded at ₹28,906 crore, with ₹6,925 crore held in cash and liquid assets.
Investors will likely monitor the progress of the ₹4,000 crore capital raise, as the final terms and timing will influence the company’s capital adequacy and potential dilution for existing shareholders. Additionally, maintaining asset quality while expanding the retail book in a competitive credit environment remains an important factor for long-term performance.