Piramal Finance. Q2 FY27 Results (NSE: PIRAMALFIN)

19 Oct 2026 · Analysis by Alpha Inflection

Signal: Earnings grew

The read

The operating trajectory strengthened in Q2FY27: total income reached ₹1,767 Cr, up 33% YoY and 5% QoQ; PPOP grew 64% to ₹846 Cr as cost-to-income improved to 52.1% from 61.2%; and PAT rose 67% to ₹545 Cr despite provisions increasing 22% YoY. Retail is the engine, with retail AUM up 30% to ₹97,462 Cr and disbursements up 34% to ₹14,646 Cr, while the quality of the PAT comparison is moderated by the prior-year ₹81 Cr exceptional charge.

P&L walk

Total income rose 33% YoY to ₹1,767 Cr, while PPOP grew 64% to ₹846 Cr as operating expenses rose only 13% to ₹921 Cr; provisions increased 22% to ₹302 Cr, yet PAT rose 67% to ₹545 Cr, supported by stronger operating income and the absence of the prior-year ₹81 Cr exceptional charge.

Key positives

• Retail AUM reached ₹97,462 Cr, up 30% YoY and representing 86% of total AUM, while total AUM rose 24% to ₹1,13,112 Cr.
• PPOP rose 64% YoY to ₹846 Cr, ahead of total-income growth of 33%, while cost-to-income improved to 52.1% from 61.2%.
• NIM expanded 35 bps YoY to 6.5% and remained stable QoQ; growth business RoAUM improved to 2.0% from 1.7%.
• Retail disbursements grew 34% YoY to ₹14,646 Cr, and the branch network expanded to 838 branches across 621 cities.
• Growth business opex-to-AUM declined to 3.2% from 3.6%, while retail opex-to-AUM declined 41 bps YoY to 3.48%.

Key concerns

• Loan loss provisions and fair-value loss increased 22% YoY to ₹302 Cr, despite declining 34% QoQ from ₹455 Cr.
• PAT growth of 67% is partly aided by the absence of ₹81 Cr of Q2FY26 exceptionals, comprising ₹60 Cr of merger-related expenses and ₹21 Cr of one-off tax expense.
• Wholesale AUM grew 24% to ₹13,978 Cr, below retail AUM growth of 30%, while associate income declined 41% YoY to ₹37 Cr.

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