Jairam Sridharan, MD & CEO, Piramal Finance
Piramal Finance, on Monday, reported a sharp surge in quarterly earnings, with consolidated net profit rising 390 per cent year-on-year to ₹502 crore in the March quarter of FY26, aided by improved margins, a stronger retail mix and one-off gains.
The non-banking finance company’s PAT also grew 25 per cent sequentially from ₹401 crore in the December quarter, underscoring steady operational momentum.
Total income for the quarter stood at ₹1,556 crore, up 16 per cent on year, driven by robust growth in net interest income, which jumped 41 per cent year-on-year to ₹1,362 crore. However, other income declined sharply by 49 per cent to ₹194 crore.
Profitability was supported by a rise in net interest margins, with net income margin expanding to 6.5 per cent in Q4 FY26, up 23 basis points sequentially. Operating performance remained resilient, with pre-provision operating profit increasing 25 per cent year-on-year to ₹694 crore.
The quarter also saw elevated provisioning, with loan loss provisions and fair value adjustments surging to ₹1,787 crore compared to ₹531 crore a year ago, largely on account of legacy assets. However, this was offset by exceptional gains of ₹1,590 crore, including proceeds from the sale of the company’s stake in Shriram Life Insurance and Piramal Imaging.
Assets under management (AUM) crossed the ₹1 lakh crore milestone, rising by a fourth on-year to ₹1.01 lakh crore, driven by continued traction in the retail segment.
For FY27 the NBFC has projected AUM growth at 25 per cent, guided for profit growth at 50 per cent, return on assets to improve to 2.5 per cent from 2.1 per cent now and to add 117 new branches, largely rural-focused.
Jairam Sridharan, MD & CEO explained that the NBFC used one-time gains to fully absorb legacy-related stress, indicating that major legacy provisioning was now behind them, reducing earnings volatility ahead.
““Whatever we needed to take on the legacy book has all happened… going forward, we don’t expect any direct impact to P&L.” He added that while some stake sales such as in Shriram General Insurance and other minority holdings remained, these were not central to future earnings.
Retail AUM
Retail AUM grew by a third to ₹85,885 crore and now constitutes 85 per cent of the overall portfolio, reflecting the company’s strategic shift towards a retail-led business model.
Sridharan said the retail-heavy book but diversified among segments made it stable.
Asset quality remained stable, with gross non-performing assets at 2.3 per cent and net NPAs at 1.6 per cent. The company also reported improved operating efficiency, with operating expenses to AUM declining to 3.4 per cent from 4 per cent a year ago.
For the full year FY26, Piramal Finance posted a PAT of ₹1,506 crore, up 210 per cent, reflecting strong growth in its core business and balance sheet strengthening.
The company maintained a strong liquidity position, with ₹8,640 crore in cash and liquid investments, and reported multiple credit rating upgrades during the quarter, signalling improved investor confidence.
Sridharan said while borrowing costs have already declined around 35 bps from their peak, the rating upgrades are expected to reduce costs by 50–80 bps over 2–3 years, as liabilities reprice.
He also flagged risks from oil price spikes, global shocks impacting credit and growth as well as cybersecurity risk due to increasing vulnerability in an AI-driven operating environment.
Published on April 27, 2026
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