Piramal Finance has crossed the ₹1 trillion Assets Under Management milestone following a shift in its business mix. The company is now focusing on retail mortgage growth and AI-driven efficiency. Analysts expect significant growth in the coming years, but investors should track the actual progress in return ratios and the sustainability of these expansion plans.
Piramal Finance has officially surpassed the ₹1 trillion milestone in its total Assets Under Management (AUM), a key measure of the value of loans and assets a financial company manages. This development follows a multi-year strategy where the company moved away from its older, legacy business segments. As of June 2026, these older assets make up only 2% of the company's total portfolio, allowing it to focus more on its retail and mortgage lending business.
Scaling Retail Mortgage and New Products
Mortgage lending remains the largest portion of the business, currently representing 57% of the total AUM. Beyond its core mortgage products, the company is also expanding into newer retail lending categories. While these products are starting from a smaller base, their rapid growth is a central part of the company’s plan to reach an AUM of ₹1.5 trillion by the 2028 financial year. This represents an estimated annual growth rate of 25% for its loan book over the next few years.
Efficiency and Profitability Projections
To support this growth, the company has introduced several AI-led initiatives aimed at improving operating efficiency and managing lending risks more effectively. Brokerage firm ICICI Securities recently shared projections suggesting that these efforts could lead to higher profitability metrics by FY28. Specifically, the forecast points toward a potential improvement in the Return on Assets to 2.4% and Return on Equity to 11%, up from 1.5% and 5% respectively in FY26. Such an improvement would be driven by a combination of higher interest yields on new loans and better control over operating costs.
Investor Monitorables and Business Risks
While the outlook for asset growth appears positive, investors should monitor the actual execution of these targets. A key factor will be the company’s ability to maintain stable asset quality as it scales its newer retail products. Additionally, because the company is relying on higher-yield disbursements to boost its total margins, its ability to pass on costs to borrowers without significantly increasing credit risk will be important. Investors may also track future quarterly updates for evidence that these AI-led initiatives are indeed reducing costs and improving overall return ratios as projected. As with any financial institution, the company’s performance will also depend on broader economic conditions, such as interest rate cycles and the overall demand for retail credit in the Indian market.