Piramal Finance reported a 66.8% jump in quarterly profit to ₹461 crore, supported by a 25% increase in total assets under management to ₹1.07 lakh crore. The lender also announced plans to raise ₹4,000 crore through equity or quasi-equity, as it maintains a cautious approach toward its new gold loan business segment.
Piramal Finance has reported a strong start to the current financial year, with a 66.8% year-on-year rise in consolidated net profit to ₹460.98 crore for the quarter ended June 30, 2026. The company’s total income grew to ₹3,429.54 crore, compared to ₹2,690.11 crore in the same period last year.
Asset Growth and Portfolio Shift
The company’s total Assets Under Management (AUM) reached ₹1.07 lakh crore, a 25% increase from the previous year. A key driver for this growth was the retail segment, which expanded by 32% to ₹91,249 crore. Meanwhile, the wholesale segment grew by 27% to ₹13,238 crore. The portfolio mix has shifted, with retail assets now accounting for 85% of the total, up from 80% a year ago. Management indicated that they plan to maintain this balance, with roughly 15% of the portfolio dedicated to wholesale lending.
Operational Strategy and Gold Loan Focus
Despite the overall expansion, the management has adopted a measured strategy regarding its entry into the gold loan market. In the first full month of operations, gold loan disbursements stood at ₹6 crore. CEO Jairam Sridharan noted that the company is prioritizing the development of a robust branch network, personnel training, and strict internal controls before scaling this business. This deliberate pace suggests a focus on risk management over aggressive initial growth.
Financial Efficiency and Asset Quality
Profitability was also helped by a reduction in funding costs. The cost of borrowing fell to 8.80% from 9.13% in the year-ago period, while the overall cost of funds decreased by 0.35% to 6.26%. Asset quality has shown improvement, with the gross non-performing asset (NPA) ratio dropping to 2.4% from 2.8% a year earlier. This improvement reflects broader efforts across the non-banking financial sector to adhere to revised MFIN guidelines concerning loan portfolio management.
Proposed Capital Raise
The board of directors has approved a plan to raise up to ₹4,000 crore through equity or quasi-equity instruments. While the specific terms, timing, and pricing are not yet finalized, the company stated that it will determine these details based on prevailing market conditions. Investors will likely monitor how this capital is deployed, particularly as the company continues its transition toward a higher retail-mix business model and evaluates the scale-up of its new gold loan operations.