Piramal Finance Ltd Q2 FY26 Concall Decoded – 100% PAT Jump, 0% Chill


1. Opening Hook

It’s not every day a 210x legacy meets a 100% PAT spike. Anand Piramal opened the show like a Netflix sequel — Ajay exits stage left, and the son steps into the NBFC multiverse. Freshly merged, freshly listed, freshly ambitious — Piramal Finance wants to double AUM by FY28, because why not aim for ₹1.5 lakh crore before lunch?

The “AI-native NBFC” talk was rich — ChatGPT meets credit underwriting. Somewhere, risk officers quietly lit incense sticks.

As the Quran says, “Indeed, with hardship comes ease.” Piramal hopes the ease arrives before RBI rate cuts do.

Stick around — it gets profitably predictive.


2. At a Glance

  • AUM ₹86,000 Cr – Equal to New Zealand’s GDP, minus rugby.
  • PAT ₹327 Cr, up 101% YoY – Doubling profits: caffeine meets capital.
  • Retail Disbursements ₹10,954 Cr, +36% YoY – Lenders gone wild.
  • Wholesale 2.0 AUM +43% YoY – Structured risk, unstructured confidence.
  • GNPA 2.6%, NNPA 1.8% – Stable, not saintly.
  • Cost of Borrowing 8.9%, -19 bps QoQ – Cheaper debt = happy CFO.
  • ROAUM 1.7%, up from 1.4% FY25 – Margin creeping like Diwali calories.

3. Management’s Key Commentary

“We are among India’s fastest growing upper-layer NBFCs with a ₹86,000 crore book.”
(Translation: We finally graduated to the grown-ups’ table.)

“We aspire for steady-state ROAUM of 3%.”
(Translation: 1.7% now, but dream big or go home.)

“We’ve reduced legacy real estate to 6% of total AUM.”
(Translation: Old ghosts nearly exorcised. Almost.)

“We have 45 AI use cases improving underwriting

and customer experience.”
(Translation: Algorithms now decide who gets your EMI approval 😏)

“Retail OPEX-to-AUM down from 6.5% to 3.9%.”
(Translation: Fewer people, more productivity — HR quietly sweating.)

“Cost of borrowing below 9% for the first time in five quarters.”
(Translation: Banks still stingy, but treasury’s dancing.)

“PAT up 101% YoY.”
(Translation: Finally something to print in bold on the investor deck.)


4. Numbers Decoded

MetricQ2 FY26Q2 FY25YoY ChangeComment
AUM₹86,000 Cr₹70,500 Cr+22%Growth engine revving, but full speed ahead in FY27
Retail Disbursements₹10,954 Cr₹8,056 Cr+36%Lifetime high – borrowers clearly trust AI
PAT₹327 Cr₹163 Cr+101%The “Profit Revival” arc
NIM↑10 bps QoQMargins learning yoga
Cost of Borrowing8.9%9.1%-19 bpsRBI didn’t cut rates, they cut costs
ROAUM1.7%1.4%+30 bpsThe climb begins
GNPA / NNPA2.6% / 1.8%2.8% / 1.9%-20 bpsCleaner, not spotless
Capital Adequacy20.7%21.5%Slight dipStill cushiony, like festival sweets

Takeaway: Numbers strong, confidence stronger. Spreadsheet magic replaced with AI optimism.


5. Analyst Questions

Q (Investec): “IRR of 14% in Wholesale — structured deals?”
A (Jairam): “No structuring. Just plain loans.”
(Translation: Even vanilla earns 14% when you

Leave a Reply

error: Content is protected !!