Piramal Finance Ltd (PIRAMALFIN) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Management is confident in mitigating rising interest rates, citing a 60-70 bps spread between maturing debt cost and current borrowing rates post-rating upgrade.
- The potential 18-24 bps ROA impact from the IRDAI insurance commission proposal has a natural hedge via its stake in the insurance partner.
- Piramal is avoiding a key industry trend, with <1% of its gold loans disbursed to delinquent customers, versus an estimated market average of 15-23%.
Performance Overview
- Piramal Finance delivered strong AUM growth of 24% YoY to INR 1,13,112 crores, driven by a 30% expansion in its core growth business.
- Quarterly net profit surged 67% YoY to INR 545 crores, with return on AUM for the growth business improving to 2.0% from 1.7% a year ago.
- The company successfully completed a substantial INR 3,850 crore equity fundraise, comprising a QIP and preferential warrant allotment to promoters.
- Asset quality remained stable, with retail 90+ DPD at 0.7%, and the legacy AUM has been reduced to just 1.5% of the total book.
- Marking five years since the DHFL merger, the company highlighted the transformational impact on scale, diversification, and profitability, including a substantial tax shield.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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