Piramal Finance Q2FY26 results: Net profit jumps twofold to ₹327 crore

Piramal Finance’s net profit jumped twofold in the quarter ended September (Q2FY26) to Rs 327 crore, against Rs 163 crore in Q2FY25.

 

The total assets under management (AUM) of the lender grew 22 per cent year-on-year (Y-o-Y) to Rs 91,447 crore, with retail AUM rising 36 per cent Y-o-Y to Rs 74,704 crore. Meanwhile, the legacy book’s AUM declined 55 per cent Y-o-Y to Rs 5,448 crore.

 

Net interest income grew 29 per cent Y-o-Y to Rs 1,132 crore.

 

The consolidated net interest margin (NIM) expanded by 104 basis points Y-o-Y to 6.1 per cent.

 

“The liability-side environment has been reasonably benign, with the cost of borrowing reducing by 19 bps during the quarter. And we went below 9 per cent after a year and a half. So, it’s been a really good quarter for borrowing,” said Jairam Sridharan, managing director and chief executive officer, Piramal Finance, at the post-earnings call.

 

He added: “The quantum of borrowing has been really strong as well, and sources of borrowing have been diversified. Because of this, the cost of borrowing has come down, resulting in an expansion in NIM. This has partly been driven by reduced exposure to the legacy book.”

 

On the asset quality front, consolidated gross non-performing assets (NPAs) stood at 2.6 per cent, with the net NPA ratio at 1.8 per cent.

 

In September, Piramal Enterprises and Piramal Finance merged into one entity. The process for getting Piramal Finance stock listed is under way. “We have received most of the approvals. One last thing is required, and then trading should begin. The trading approval, depending on when we can get that from SEBI, should be ready. Our expectation is somewhere in the early part of November,” said Sridharan.

 

On the retail side, quarterly disbursements grew 36 per cent Y-o-Y to Rs 10,954 crore. Mortgage disbursements grew 29 per cent Y-o-Y to Rs 6,017 crore. Cross-sell stood at 27 per cent of unsecured disbursements and 11 per cent of retail disbursements. On the wholesale front, AUM grew 43 per cent to Rs 11,295 crore, and quarterly disbursements rose 11 per cent Y-o-Y to Rs 2,043 crore.