Piramal Finance Q2 Net Profit Jumps 67% to ₹545 Crore on Strong Core Income
Piramal Finance Limited (NSE:PIRAMALFIN) posted a 67% year-over-year increase in net profit for the September quarter, reaching ₹545 crore. The earnings surge was driven by robust expansion in core income and significant cost efficiencies. Core net interest income rose 35% to ₹1,530 crore, supported by a 24% growth in total assets under management and an expansion of net income margin to 6.5%. The company also reduced its cost-to-income ratio to 52.1% from 61.2% in the prior period.
The non-bank lender achieved solid overall growth despite facing a wave of early loan repayments, particularly in its wholesale real estate portfolio. Nearly 70% of fresh disbursals were paid back ahead of schedule during the quarter, slowing real estate asset growth to 7%, compared to a potential 25% without the early repayments. On asset quality, gross non-performing assets held steady at 2.4%, though the lender noted ongoing caution regarding loans to IT sector employees in South India.
Looking ahead, management expressed confidence in expanding net income margins by up to 0.20% over the coming year. A recent credit rating upgrade is expected to lower borrowing costs over the next two to three years, helping offset broader interest rate pressures across the sector. Additionally, the firm named former State Bank of India chairman Dinesh Kumar Khara to its board as an independent director for five years.
Key points
- Piramal Finance Q2 net profit surged 67% year-over-year to ₹545 crore on strong core income and lower costs.
- Core net interest income grew 35% to ₹1,530 crore as assets under management increased by 24%.
- The company expects net income margin to expand by up to 0.20% over the next year following a rating upgrade.
- Gross non-performing assets remained stable at 2.4% as of September 2026.
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What was Piramal Finance net profit in Q2 2026?
Piramal Finance reported a net profit of ₹545 crore for the September quarter of 2026, representing a 67% increase from the previous year.
Why did Piramal Finance profits increase in Q2?
Profit growth was driven by a 35% increase in core net interest income to ₹1,530 crore, a 24% rise in assets under management, and an improvement in the cost-to-income ratio to 52.1%.
What is the future margin guidance for Piramal Finance?
Management expects net income margins to expand by up to 0.20% over the next year, aided by a recent rating upgrade that will reduce borrowing costs over the next two to three years.