Piramal Finance Skyrockets: AUM Surges 23%, PAT Jumps 10x on Retail Momentum

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AuthorAarav Shah|Published at:
Piramal Finance Skyrockets: AUM Surges 23%, PAT Jumps 10x on Retail Momentum
Overview

Piramal Finance reported a stellar Q3 FY26 with consolidated AUM soaring 23% YoY to ₹96,690 Cr, led by 34% retail growth. Nine-month PAT crossed ₹1,000 Cr, a 10x jump from FY25, fueled by margin expansion and operational leverage. CRISIL upgraded debt rating to AA+, while the company eyes ₹1 lakh Cr AUM by FY26 end and ₹1.5 lakh Cr by FY28.

📉 The Financial Deep Dive

Piramal Finance has posted a robust Q3 FY26 performance, marked by significant year-on-year growth across key metrics.

The Numbers:

  • Consolidated Assets Under Management (AUM) surged by 23% YoY to ₹96,690 crores.
  • Retail AUM showed exceptional strength, growing 34% YoY to ₹53,958 crores, now forming 56% of total AUM.
  • The mortgage business (housing loans and LAP) expanded 35% YoY to ₹53,958 crores.
  • Wholesale 2.0 AUM also saw strong growth at 35% YoY, reaching ₹12,047 crores.
  • For the nine months ended FY26, consolidated Profit After Tax (PAT) reached ₹1,004 crores, a massive increase from ₹383 crores in FY25.
  • Q3 FY26 net profit stood at ₹401 crores, a substantial leap from ₹39 crores in Q3 FY25.
  • Consolidated margins expanded by 51 basis points YoY to 6.3%.
  • Net worth reached ₹27,872 crores, with a Capital Adequacy Ratio of 20.3%.

The Quality:

  • Return on AUM for the growth business improved to 1.9% in Q3 FY26.
  • Credit costs for the Growth business declined QoQ to 1.6%, with 90-day delinquencies remaining stable. Retail 90+ DPD is at 0.8%.
  • Retail opex to AUM continued its downward trend, falling to 3.8% in Q3 FY26, targeting 3.25%-3.75%.

Management Guidance & Outlook:
Management expressed confidence in achieving near-term and medium-term targets. The company is on track to end FY26 with AUM over ₹1 lakh crores and projects AUM to exceed ₹1.5 lakh crores by FY28. Key strategic drivers are growth, profitability, and predictability, with an aim to become an AI-native company. The leverage target is set between 4.5x to 5x, targeting 3% RoAUM. Plans include opening approximately 100 branches in Q4 FY26 for full-service, gold loan, and microfinance categories, with a strong focus on expanding microfinance and gold loans.

🚩 Risks & Outlook

Specific Risks:

  • Risks in the low-ticket LAP segment and used car loans require continued monitoring.
  • The legacy wholesale business is being strategically reduced, aiming for a book size of ₹3,000-₹3,500 crores by March FY26.
  • Managing the outstanding ₹15,000 crores in DHFL-acquired liabilities is ongoing, with refinancing expected without significant cost impact.

The Forward View:
Investors should watch for the execution of the branch network expansion, further monetization of assets (like the ₹600 crores Sriram Life Insurance stake expected in Q4 FY26), and the continued deployment of AI initiatives, particularly in collections and optimization. The company's long-term direction is clear: scaling its retail franchise, improving profitability, and building a tech-enabled, AI-native business. A management transition in the retail business was also announced with internal promotions.

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