The company’s consolidated revenue rose 27.65% year-on-year to ₹3,368 crore from ₹2,639 crore in the year-ago period. Piramal Finance’s Assets Under Management (AUM) increased 25% year-on-year to ₹1,06,940 crore, driven by a 32% year-on-year growth in AUM, excluding the discontinued legacy business.
The company’s board has approved a fund raise of up to ₹4,000 crore. The company plans to raise the funds at an appropriate time after receiving shareholder approval.
Business performance
Retail AUM increased 32% year-on-year to ₹91,249 crore, accounting for 85% of total AUM. Retail AUM growth remained diversified across product categories, with growth ranging between 18% and 67% year-on-year.
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Mortgage AUM grew 30% year-on-year to ₹61,199 crore, forming 67% of retail AUM and 57% of total AUM. Retail disbursements increased 44% year-on-year to ₹12,527 crore during the quarter.
Piramal Finance expanded its nationwide presence to 780 branches across 607 cities in 26 states. Its customer franchise grew 24% year-on-year to 6 million customers.
In wholesale lending, Wholesale 2.0 AUM grew 27% year-on-year to ₹13,238 crore. Wholesale disbursements during the quarter increased 13% year-on-year to ₹2,604 crore, while repayments, including pre-payments, stood at ₹1,932 crore.
Profitability and asset quality
Piramal Finance’s Net Income Margin expanded by 47 basis points year-on-year to 6.5% and remained stable sequentially. The company’s cost of borrowing stood at 8.8%, while the cost-to-income ratio declined to 52.5% in Q1 FY27 from 65.6% in Q1 FY26.
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Growth business Return on AUM (RoAUM) improved to 1.9% in Q1 FY27 from 1.5% in Q1 FY26. Growth business operating expenses to AUM declined to 3.3% from 3.9% a year ago. Growth business credit cost remained stable at 1.6%, while Profit Before Tax (PBT) from the growth business stood at ₹470 crore.
Asset quality remained stable, with Gross Non-Performing Assets (GNPA) at 2.4% and Net Non-Performing Assets (NNPA) at 1.6%. Retail 90+ Days Past Due (DPD) stood at 0.7%. Wholesale repayments accounted for 74% of disbursements during Q1 FY27.
Liabilities and financial position
Piramal Finance’s net worth stood at ₹28,906 crore, supported by liquidity of ₹6,925 crore in cash and equivalents, accounting for 6% of assets. The company’s AUM-to-equity ratio stood at 3.7 times, while average Liquidity Coverage Ratio (LCR) was at 553%.
Average borrowing cost declined 33 basis points year-on-year to 8.80%. The company continued to diversify its borrowing mix across mutual funds, securitisation and international borrowings.
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Asset-liability management (ALM) remained matched, with positive gaps across all maturity buckets. Retail disbursement yields remained stable at 14.2%, while wholesale Effective Interest Rate (EIR) was at 14.2%, with an average ticket size of ₹56 crore. Retail operating expenses to AUM declined 66 basis points year-on-year to 3.5%, marking a reduction of around 300 basis points over three years.
Anand Piramal, Chairman, Piramal Finance Ltd, said, “Our performance in the first quarter reflects the strength of the franchise we have built over the past few years.
While Piramal Finance is the youngest among India’s Upper Layer NBFCs, we have already established a diversified retail franchise serving nearly six million customers across Bharat by combining the reach of our physical network with technology and AI embedded across every aspect of our operations.”
Shares of Piramal Finance Limited ended at ₹2,183.10, up by ₹12.20, or 0.56%, on the BSE.
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