Piramal Finance Reports 67% Increase in Q2 Net Profit to 545 Crore Rupees
Piramal Finance Limited (NSE:PIRAMALFIN) reported a 67% year-on-year increase in consolidated net profit to 545 crore rupees for the second quarter ended September 2026. The financial services firm saw its net interest income rise 35% to 1,530 crore rupees as interest income grew faster than borrowing costs. Sequentially, net profit expanded 18% compared to the June quarter.
The solid quarterly performance was driven by broad lending growth across divisions, with total assets under management increasing 24% to 1.1 lakh crore rupees. Retail lending led the expansion with a 30% jump to 97,462 crore rupees. The lender's profitability metrics improved as its net interest margin expanded by 35 basis points to 6.5%, keeping management confident in achieving its target of 50% annual profit growth for fiscal year 2027.
Looking ahead, investors will monitor potential regulatory changes concerning insurance product distribution commissions. Proposed guidelines could lower the company's return on assets by 18 to 24 basis points in fiscal year 2028 from its current level of 2%. Additionally, loan-loss provisions rose 22% during the quarter to 302 crore rupees. The company also announced the appointment of former State Bank of India chairman Dinesh Khara as an independent director.
Key points
- Q2 net profit rose 67% year-on-year to 545 crore rupees, while net interest income grew 35% to 1,530 crore rupees.
- Total assets under management grew 24% to 1.1 lakh crore rupees, with retail loans rising 30% to 97,462 crore rupees.
- Net interest margin widened 35 basis points to 6.5%, supporting management confidence in 50% annual profit growth guidance for FY27.
- Proposed insurance distribution rules could reduce return on assets by 18-24 basis points in FY28.
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What was Piramal Finance's net profit for Q2 FY27?
Piramal Finance reported a consolidated net profit of 545 crore rupees for the second quarter ended September 2026, representing a 67% increase from 327 crore rupees in the same period a year earlier.
How much did Piramal Finance's assets under management grow?
Total assets under management increased 24% year-on-year to 1.1 lakh crore rupees, driven by a 30% rise in retail assets under management to 97,462 crore rupees.
What regulatory challenge could impact Piramal Finance in FY28?
Proposed rules on insurance distribution commissions could lower Piramal Finance's return on assets by 18 to 24 basis points in FY28. The company earns around 200 crore rupees from insurance product distribution.