Piramal Finance reported a 67% year on year increase in net profit to Rs 545 Cr for the second quarter of FY27, supported by stronger core income, growth in assets under management (AUM) and improved operating efficiency.
The non-banking financial company (NBFC) recorded core net interest income of Rs 1,530 crore, up 35% from the year ago period. Its AUM grew 24%, while net interest margin (NIM) expanded by 0.35 percentage points to 6.5%.
The company also improved its cost to income ratio to 52.1% from 61.2% a year earlier. The results suggest that higher income and tighter cost management are supporting profitability as the lender expands its loan book.
Jairam Sridharan Sees Room for Further Margin Expansion
Managing Director and Chief Executive Jairam Sridharan said Piramal Finance expects to expand its net interest margin by up to 0.20 percentage points over the next year. A recent credit-rating upgrade is expected to help reduce borrowing costs over the next two to three years, supporting the margin outlook.
The company also reported elevated early repayments, particularly in wholesale lending and real estate. Sridharan said real estate AUM growth could have reached 25% during the quarter, compared with the reported growth of around 7%, if not for advance repayments.
On asset quality, gross non-performing assets remained stable at 2.4%. However, the company continues to monitor stress among salaried information technology professionals in South India and is taking a cautious approach to lending to this group.
Dinesh Kumar Khara Joins the Board
Piramal Finance has appointed Dinesh Kumar Khara, former chairman of State Bank of India, as an independent director for a five year term. The appointment adds an experienced banking leader to the company's board as it pursues further growth in retail and wholesale lending.
Piramal Finance shares closed marginally lower at Rs 1,948.05 on the BSE on October 19, down 0.08%, according to the reported market data.
The Unicorn Magazine:- Editing by Dhiraj Shaw
