Piramal Finance Ltd.AUM +24%, PAT +67% to ₹545 Cr, rate rise seen hedged

Piramal Finance's Q2 FY27 call, held on 19 October 2026, reported assets under management of ₹1,13,112 crore, up 24%, with the growth book up 30%, and profit after tax up 67% to ₹545 crore.

Return on AUM in the growth business reached 2%, with a 2.5% exit target for Q4, and cost to income fell to 52%. The company raised ₹3,850 crore of equity, taking capital adequacy to 20.1%, and argued it is positioned for rising rates because maturing debt at about 9.1% will be replaced at about 8.4% and variable rate assets exceed variable rate liabilities. Gross NPA was 2.4% and net NPA 1.7%, with retail delinquency stable at 0.7%.

A draft IRDAI insurance rule could cost 18 to 24 basis points of FY28 return on assets gross, partly offset by its stake in Pramerica Life. Management held FY27 guidance of 25% AUM growth and 50% profit growth, warned that industry gold loans are going to deeply delinquent borrowers, and gave no FY28 return guidance.