1. Opening Hook
Just when everyone thought NBFCs would slow down post rate-cycle drama, Piramal Finance shows up with a spreadsheet that actually behaves. While the street was busy debating credit cycles and microfinance ghosts, management calmly doubled down on growth, profitability, and—wait for it—predictability.
Q3 FY26 wasn’t about flashy one-offs (okay, one tax refund helped), but about quietly fixing the plumbing: AUM scaling, opex bleeding less, and legacy books being shoved out the door like an unwanted houseguest.
The real flex? Management talking RoAUM, leverage discipline, and AI in the same breath—without sounding like a buzzword conference panel.
Read on. Because behind the calm tone, there’s aggressive ambition, some brave assumptions, and a few pressure points the market is politely ignoring—for now.
2. At a Glance
- AUM up 23% YoY – Growth engine still humming, legacy finally losing relevance.
- Growth AUM up 34% YoY – Retail doing the heavy lifting, wholesale behaving well.
- Consol PAT ₹401 Cr – Up 940% YoY; last year was… let’s call it character-building.
- Consol NIM at 6.3% – Rate cuts helped, ALM discipline did the rest.
- RoAUM at 1.9% – Marching towards the >3% dream, not sprinting yet.
- AUM/E at 3.5x – Leverage climbing, still within management’s comfort zone.
3. Management’s Key Commentary
“We remain on track to reach ₹1.5 lakh crore AUM by FY28.”
(Translation: Growth target
unchanged, regardless of macro mood swings 😏)
“Retail opex-to-AUM continues to decline.”
(Branches are finally earning their salaries, not just rent.)
“Growth business credit cost declined to 1.6%.”
(Underwriting is working—for now. Let’s not jinx it.)
“Legacy AUM will be below ₹35 billion by March 2026.”
(The cleanup job is almost done. No nostalgia here.)
“54% of our code is now written by AI.”
(Humans supervise, machines execute. Salary bills quietly sweating 🤖)
“We are comfortable with leverage moving towards 4.5–5x over time.”
(Balance sheet confidence is back. Risk team allowed to breathe.)
4. Numbers Decoded
Metric Q3 FY26 Read-Through
---------------------------------------------------------------
Total AUM ₹96,690 Cr Scale phase intact
Growth AUM mix 95% Legacy nearly irrelevant
Retail AUM ₹79,413 Cr Core franchise now
Wholesale 2.0 AUM ₹12,047 Cr Granular, prepaid, disciplined
Consol NIM 6.3% Rate + ALM tailwind
Credit cost (growth) 1.6% Stable, not miraculous
Net worth ₹27,872 Cr Capital