Piramal Finance544597Earnings call transcript

Q2 FY27 call: AUM up 24% at INR1,13,112 crores, PAT up 67%; FY28 AUM aspiration INR1.5 lakh crores

The Q2 and H1 FY27 earnings call transcript is out.

By ScoutQuest · Fri 23 Oct 2026, 2:57 PM IST · 3 min read

Total AUM: rose 24% year-on-year to INR1,13,112 crores
Q2 PAT: rose 67% to INR545 crores
Equity raise: INR3,850 crores completed — QIP of INR2,100 crores plus INR1,750 crores of promoter warrants

The chairman's and MD & CEO's remarks on the Q2 and H1 FY27 earnings call cover growth, profitability, funding costs and medium-term targets.

Total AUM rose 24% year-on-year to INR1,13,112 crores. Growth AUM rose 30% and is now 98.5% of total AUM, while the legacy book came down 69% year-on-year.
Q2 FY27 PAT was up 67% year-on-year to INR545 crores, with underlying Growth business PBT of INR538 crores. H1 FY27 PAT was also up 67% and crossed the INR1,000 crores mark.
Return on AUM for the Growth business rose to 2% annualised from 1.7% in Q2 FY26, described as 34 bps higher.

Disbursements were up 34% year-on-year in the second quarter.
Retail AUM grew 30% year-on-year to INR97,462 crores. Mortgages (housing loans plus loan against property) grew 27% to INR64,650 crores and form 57% of AUM.
The four unsecured categories — personal loans, unsecured business loans, digital loans and rural micro loans — grew 46% year-on-year to INR23,764 crores, now 21% of AUM.
Wholesale AUM rose 24% year-on-year to INR13,978 crores; the real estate to mid-market mix is 68:32.
The customer franchise grew 26% year-on-year to 6.5 million; cross-sell sourced 30% of unsecured disbursements.
Distribution: gold loan branches rose to 100 from 67, rural branches to 203 from 178, taking the total network to 838. No full-service urban branch was added in the quarter.

The company completed an equity raise of INR3,850 crores — a QIP of INR2,100 crores and INR1,750 crores of warrants allotted on a preferential basis to the promoter group.
Net income margin was flat quarter-on-quarter at 6.5%; the Growth book net interest margin is 6.8%.
Incremental cost of long-term borrowing declined from 9.36% in H1 FY26 to 8.67% in H2 and to 8.46% in H1 FY27, following domestic rating upgrades to AA+ between January and March 2026.
Roughly INR37,500 crores of long-term borrowings are due for maturity in the next 18 months.
Leverage (AUM to equity) was 3.6x versus 3.7x in Q1, with a medium-term goal of 4.5x to 5x.

AUM growth guidance of 25% for FY27.
Medium term: AUM expected to double every 3 years, implying INR1.5 lakh crores by FY28.
Gold loan branch count targeted at 200 by the end of March 2027.
Management said it remains on track for its FY27 and FY28 AUM growth expectations and expects leverage to progress towards 4.5x to 5x.

Mr. Dinesh Kumar Khara joined as an Independent Director for a 5-year term.
Five years after the DHFL merger, Growth business AUM has moved from INR23,000 crores to INR1.1 lakh crores; the company cites gains of more than INR3,000 crores from DHFL's stress book and a tax shield of INR16,000 crores of assessed carry-forward losses.
Macro caution: management flagged rising global inflation and the RBI shift from a neutral stance to calibrated tightening, and said H2 FY27 is likely to see a broad-based increase in borrowing costs. Rising U.S. and Japanese sovereign bond yields and the prospect of crude oil staying high for longer were cited as risks to watch.

The discussion includes forward-looking statements, which the company says must be viewed together with the risks and uncertainties it faces.

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