Piramal Finance Q2 profit rises 67% to Rs 545 crore

Piramal Finance’s consolidated net profit rose 67% year on year to Rs 545 crore in the second quarter ended September 2026, supported by higher net interest income and other income, Economic Times Markets reported on October 19. Profit was Rs 327 crore a year earlier and rose 18% from Rs 461 crore in the June quarter.

The comparison also reflects expenses in the year-earlier quarter: Rs 60 crore in exceptional merger-related costs and a one-off tax charge of Rs 21 crore. Those items are relevant when assessing the scale of the reported profit increase.

Lending income and margins strengthen

Net interest income increased 35% to Rs 1,530 crore. Interest income grew 24% to Rs 3,358 crore, outpacing the 16% increase in interest expenses to Rs 1,828 crore. Net interest margin widened by 35 basis points to 6.5%, while the cost of borrowing stood at 8.79%.

Pre-provision operating profit climbed 64% to Rs 846 crore. Other income increased 20% to Rs 237 crore, comprising Rs 131 crore in fees and commissions, Rs 10 crore in dividends and Rs 96 crore from other sources.

Credit-related charges also increased: loan-loss provisions and fair-value losses together rose 22% to Rs 302 crore from Rs 248 crore.

Retail lending expands; equity capital raised

Assets under management grew 24% to Rs 1.13 lakh crore, with retail AUM rising 30% to Rs 97,462 crore. Wholesale AUM was reported at Rs 13,978 crore, up 24%.

Total borrowings stood at Rs 85,802 crore. Of these, 31% were linked to the marginal cost of funds-based lending rate, or MCLR, 30% were market-linked and 39% carried fixed rates.

During the year, the company raised Rs 3,850 crore in equity capital: Rs 2,100 crore through a qualified institutional placement and Rs 1,750 crore through a preferential allotment to its promoter group. It also appointed former State Bank of India chairman Dinesh Khara as an independent director.

Profit outlook holds, with insurance-rule risk

Managing director and chief executive Jairam Sridharan expressed confidence in meeting the company’s guidance for 50% year-on-year net profit growth in FY27. Its return on assets stood at 2%.

Sridharan cautioned that proposed guidelines governing insurance distribution commissions could reduce return on assets by 18–24 basis points in FY28 if implemented in their current form. That is a conditional management estimate, not a realised impact. The company earns about Rs 200 crore from distributing life and non-life insurance products.