Piramal Finance profit rises 67% to 545 crore rupees in second quarter
Key Facts
India's Piramal Finance posted a 67% year-on-year rise in consolidated net profit to 545 crore rupees in the second quarter of fiscal 2027, ended September 2026. Results announced on Monday, October 19, showed improved profitability alongside expanding assets under management and wider margins, according to the Financial Express and Press Trust of India coverage. Profit after tax in the corresponding quarter of fiscal 2026 was about 327 crore rupees, according to the Financial Express. On a quarterly basis, profit rose 18% from 461 crore rupees in the first quarter of fiscal 2027. The increase came alongside growth in net interest income and an improved cost-to-income ratio, according to the agency's coverage published by Business Standard.
In operating performance, the cost-to-income ratio fell to 52.1% during the reporting quarter, compared with 61.2% in the comparison period cited in Press Trust of India's coverage. This improvement helped support profitability in the second quarter of fiscal 2027, alongside a wider net income margin. The margin reached 6.5%, according to the agency, which linked the increase in net interest income to the margin's expansion and growth in the company's assets under management. Pre-provision operating profit rose to 846 crore rupees during the same period, according to the earnings call transcript published on Investing.com. This represented year-on-year growth of 64% in that measure, alongside the improvements in efficiency and margins reported in the results coverage.
Piramal Finance's assets under management stood at 1.13 lakh crore rupees at the end of September 2026, according to the Financial Express. Assets under management thus recorded a year-on-year increase of 24% at the end of the second quarter of fiscal 2027. In the retail business, assets under management reached 97,462 crore rupees, according to figures in the earnings call transcript published on Investing.com. Assets in this business grew 30% from the corresponding period a year earlier, outpacing growth in the company's total assets under management. Piramal Finance's network in India comprised 838 branches at the end of the quarter, specifically on September 30, 2026, according to the Financial Express.
The company strengthened its capital base with total funding of 3,850 crore rupees, according to the Financial Express's coverage of the October 2026 results announcement. The fundraising included an institutional placement and a preferential allotment of warrants, according to the newspaper. In the background to the quarterly results, Piramal Finance had announced on September 11, 2026, that Moody's had upgraded its credit rating. The rating rose to Ba2 from Ba3, according to the company's statement on the agency's decision. The statement said the upgrade carried a "stable" outlook, adding the credit development to the capital-strengthening measures announced by the company.
In lending, Piramal Finance entered into a co-lending partnership with Muthoot Fincorp, according to a statement from Piramal on the agreement. The partnership aims to expand access to affordable housing finance in India, alongside providing financing solutions for micro, small and medium-sized enterprises. These solutions include loans against property, according to the company's description of the areas of cooperation with Muthoot Fincorp. Piramal said in its statement that the partnership aims to "expand access to affordable housing finance" and loans against property for these enterprises. The agreement forms part of the company's financing and lending operations, while the quarterly results showed year-on-year expansion in its retail business.
On credit quality, Piramal Finance's gross non-performing loan ratio stood at 2.4% at the end of September 2026, according to Press Trust of India's results coverage. In the stock market, the company's shares closed Monday's October 19 session, the day the results were announced, down 0.08% on the Bombay Stock Exchange. The closing price was 1,948.05 rupees per share, according to the agency, in the session in which the company announced its jump in quarterly profit. Looking ahead, management confirmed during the earnings call that it was on track to meet its fiscal 2027 guidance, according to the transcript published on Investing.com. That guidance targets year-on-year growth of 25% in assets under management and a 50% increase in profit during fiscal 2027.