Piramal Finance. Q1 FY27 Results (NSE: PIRAMALFIN)
Signal: Earnings grew
The read
Piramal Finance delivered a strong Q1FY27 with PPOP surging 89% YoY as operating leverage drove cost-to-income down 1,310bps; PAT rose 67% YoY to ₹461 Cr. AUM growth of 25% YoY was led by retail (+32%), and NIM expanded 47bps. The Board's ₹4,000 Cr fund raise signals preparation for continued growth. Key monitorable: loan loss provisions more than doubled YoY (partly due to year-ago ECL benefit).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,368 Cr | 27.62% | -1.64% |
| EBIT | ₹804 Cr | 89% | |
| Net profit | ₹461 Cr | 67% | |
| EPS | ₹20.34 | 18390.9% | |
| EBIT margin | 0% |
P&L walk
PPOP surged 89% YoY on 37% total income growth and flat opex growth of 10%, driving a 1,310bps improvement in cost-to-income; NII expanded 43% YoY aided by NIM expansion; PAT up 67% YoY despite a 2.3x jump in loan loss provisions.
Key positives
- NIM expanded 47bps YoY to 6.5%, cost of borrowing down 33bps YoY
- Cost-to-income improved from 65.6% in Q1FY26 to 52.5% in Q1FY27 (-1,310bps)
- AUM up 25% YoY to ₹1,06,940 Cr, retail AUM up 32% driving 85% of total AUM
- Disbursements in retail grew 44% YoY, customer base +24% YoY to 6mn
- Growth business RoAUM improved to 1.9% from 1.5% YoY
- AI-led operating leverage: disbursement per branch +23% YoY, per employee +16% YoY
- Asset quality stable: GNPA 2.4%, NNPA 1.6%
Key concerns
- Loan loss provisions more than doubled YoY to ₹460 Cr (+127%); Q1FY26 had ₹105 Cr positive ECL rebalancing
- EPS growth from a very low prior-year base (₹0.11)
- PAT down 8% QoQ from Q4FY26's ₹502 Cr (which included exceptionals)
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