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 theQuransays,“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
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Comment |
|---|---|---|---|---|
| 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 QoQ | — | — | Margins learning yoga |
| Cost of Borrowing | 8.9% | 9.1% | -19 bps | RBI didn’t cut rates, they cut costs |
| ROAUM | 1.7% | 1.4% | +30 bps | The climb begins |
| GNPA / NNPA | 2.6% / 1.8% | 2.8% / 1.9% | -20 bps | Cleaner, not spotless |
| Capital Adequacy | 20.7% | 21.5% | Slight dip | Still 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 pick your borrowers right.)
Q (Emkay):“How will you fund ₹1.5 lakh crore AUM?”A:“Capital raise unlikely till FY27. Profits will pay the bills.”(Translation: Until then, prayers and ROAUM shall suffice.)
Q (CLSA):“Cost of funds below 9%. What’s next?”A:“Maybe 10 bps lower in Q4. RBI willing.”(Translation: Our cost curve bends at the mercy of Rajan’s successor.)
Q (Jefferies):“Used cars and unsecured business loans — risky?”A:“Slight caution, nothing burning yet.”(Translation: Seatbelt on, engine running.)
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