Piramal Finance Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Piramal Finance Ltd filed with BSE on 22 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Piramal Finance reported Q1 FY27 consolidated PAT of Rs 461 crore, up 67% year-on-year, with total AUM growing 25% year-on-year to Rs 1,06,940 crore and Growth AUM up 32%. Management described stable asset quality across retail and wholesale books, a marginal quarter-on-quarter decline in NIM attributed to reduced direct assignment sales, and highlighted early signs of stress among IT-sector salaried customers in southern India. The board also approved an enabling resolution to raise up to Rs 4,000 crore in capital, and the company received BBB/Stable ratings from two Japanese credit agencies.
Numbers mentioned
Total AUM: Rs. one lakh seven thousand crores (Q1 FY27)
p. 3
“Total AUM grew by 25% year-on-year to Rs. one lakh seven thousand crores.”
Anand Piramal, page 3 of the filed PDF · View the filing
PAT: Rs. 461 crores (Q1 FY27)
p. 3
“In Q1 FY27, our PAT was up 67% year-on-year to Rs. 461 crores with underlying Growth business PBT of Rs. 470 crores.”
Anand Piramal, page 3 of the filed PDF · View the filing
Growth business ROAUM: 1.9% (Q1 FY27)
p. 3
“Q1 FY27 ROAUM of growth business was at 1.9% versus 1.5% ROAUM in Q1 of FY26.”
Anand Piramal, page 3 of the filed PDF · View the filing
AUM to equity leverage: 3.7x (Q1 FY27)
p. 4
“Leverage, i.e., AUM to equity, also continues to increase as you can see on this page, and it is at 3.7x at the end of Q1.”
Jairam Sridharan, page 4 of the filed PDF · View the filing
Retail 90 plus delinquencies: 0.7% (Q1 FY27)
p. 4
“The stability and predictability are also visible in our credit risk outcomes with retail 90 plus delinquencies at 0.7%, stable in a very narrow range of 0.6 to 0.8% over the last four plus years.”
Jairam Sridharan, page 4 of the filed PDF · View the filing
Retail AUM: Rs. 91,249 crores (Q1 FY27)
p. 5
“Retail AUM grew by 32% year-on-year to Rs. 91,249 crores.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
Mortgage AUM: Rs. 61,199 crores (Q1 FY27)
p. 5
“Our mortgage business, comprising housing loans and LAP, grew by 30% year-on-year to Rs. 61,199 crores.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
Wholesale AUM: Rs. 13,238 crore (Q1 FY27)
p. 8
“As at June 2026, the wholesale book stood at Rs. 13,238 crore, which was a growth of 27% year-on-year.”
Yesh Nadkarni, page 8 of the filed PDF · View the filing
Net income margin (NIM): 6.5% (Q1 FY27)
p. 6
“Moving on to margins, our net income margin was flat quarter on quarter at 6.5% as you can see on slide 44.”
Jairam Sridharan, page 6 of the filed PDF · View the filing
Cost of borrowing: 8.80% (Q1 FY27)
p. 6
“Cost of borrowing during the quarter declined marginally by four basis points quarter on quarter to 8.80%.”
Jairam Sridharan, page 6 of the filed PDF · View the filing
Retail OPEX to AUM: 3.5% (Q1 FY27)
p. 6
“Moving on to OPEX, the retail OPEX to AUM came down further by 10 basis points quarter on quarter to 3.5% in Q1.”
Jairam Sridharan, page 6 of the filed PDF · View the filing
Cost to income ratio: 53% (Q1 FY27)
p. 6
“Our company's cost to income ratio was at 53% in the first quarter of FY27.”
Jairam Sridharan, page 6 of the filed PDF · View the filing
AI token usage: 320 billion tokens (Q1 FY27)
p. 7
“The strong growth in our AI token usage, which represents in a very crude way the total use of generative AI strategies in the company, continued in the first quarter as well, with token volume usage of 320 billion tokens in the first quarter.”
Jairam Sridharan, page 7 of the filed PDF · View the filing
Total income: Rs. 1,693 crore (Q1 FY27)
p. 9
“Total income thus grew 37% year-on-year to Rs. 1,693 crore.”
Vikash Singhla, page 9 of the filed PDF · View the filing
Pre-provisioning operating profit: Rs. 804 crore (Q1 FY27)
p. 9
“Our pre-provisioning operating profit grew by 89% year-on-year to Rs. 804 crore.”
Vikash Singhla, page 9 of the filed PDF · View the filing
Net worth: Rs. 28,906 crore (as on June end 2026)
p. 9
“Our net-worth stands at Rs. 28,906 crore with capital adequacy at 18.85% as on June end 2026.”
Vikash Singhla, page 9 of the filed PDF · View the filing
Wholesale disbursements: Rs. 2,604 crore (Q1 FY27)
p. 8
“During the first quarter, we disbursed Rs. 2,604 crore across 73 separate transactions, including 38 new transactions and 35 transactions which were sanctioned in the in the past but were partly disbursed during this quarter.”
Yesh Nadkarni, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Growth business ROAUM — 2.5% · Q4 FY27
stated firmly by Jairam Sridharan
p. 12
“This year, we've started at 1.9% or 1.8% if you remove POCI and kind of we've guided for 2.5% for Q4.”
Jairam Sridharan, page 12 of the filed PDF · View the filing
Gold loans branch network — 200 branches · end of March 2027
stated firmly by Jairam Sridharan
p. 5
“We have now started launching the phase two of our gold loans network, and we aim to take this business to 200 branches by the end of March 2027.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
AUM to equity leverage — 4.5 to 5x
stated as an aspiration by Jairam Sridharan
p. 4
“This compares to 3.2x in the same quarter last year, and we continue to progress towards our goal of 4.5 to 5x.”
Jairam Sridharan, page 4 of the filed PDF · View the filing
Retail OPEX to AUM — through the course of FY27
stated as an aspiration by Jairam Sridharan
p. 6
“The continued productivity gains for our employees and branches, we believe, have the potential to take our retail OPEX to AUM further lower through the course of FY27.”
Jairam Sridharan, page 6 of the filed PDF · View the filing
FY27 AUM growth, profit growth, and ROAUM — original guidance provided last quarter · FY27
stated firmly by Jairam Sridharan
p. 8
“With the strong start we have made in Q1, we are confident of meeting our original guidance that we provided last quarter for FY27 on AUM growth, profit growth, and return on AUM by the end of the year.”
Jairam Sridharan, page 8 of the filed PDF · View the filing
Branch penetration on personal loans — 100% branch penetration · next two to three quarters
stated as an aspiration by Jairam Sridharan
p. 20
“My intention is to get to 100% branch penetration on PL over the next two to three quarters.”
Jairam Sridharan, page 20 of the filed PDF · View the filing
OPEX to AUM value extraction — another 40, 50 basis points · next four to five quarters
stated as an aspiration by Jairam Sridharan
p. 19
“I believe another 40, 50 basis points of value can be extracted from here over the next four to five quarters.”
Jairam Sridharan, page 19 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Jairam clarified the concern is specific to IT-sector salaried customers in South India, not the broader salaried segment, which continues to perform well.
Answered by Jairam Sridharan
Asked by Shreya Shivani: Is the strong salaried personal loan disbursement growth compatible with the IT-sector stress management flagged?
p. 10
“So our comfort level with respect to PL risk, etcetera is extremely high right now. I have no problems kind of growing that sector.”
Jairam Sridharan, page 10 of the filed PDF · View the filing
Management said the business is cyclical, largely covered by FLDG, and volumes rise and fall with fintech sector activity and risk levels.
Answered by Jairam Sridharan
Asked by Shreya Shivani: What is driving the recent scale-up in the digital/partnerships loan book and is the strategy different this time?
p. 10
“After multiple quarters of being kind of down in the dumps, in the last two quarters, Fintech activity is really picked back up.”
Jairam Sridharan, page 10 of the filed PDF · View the filing
Management attributed it to refinancing by banks, capital markets fundraising, and stronger-than-expected operating cash flows, with real estate mainly driven by asset monetisation ahead of underwriting.
Answered by Jairam Sridharan
Asked by Abhijit Tibrewal: What is driving elevated wholesale prepayments and are borrowers refinancing elsewhere?
p. 13
“In CMML, the source is either one of three things. Refinance is a strong source. There is a lot of refinance that's happening and banks are taking us out.”
Jairam Sridharan, page 13 of the filed PDF · View the filing
Management explained that regulatory capital adequacy of 18.85% is lower than the leverage metric would imply due to deductions, and they prefer to stay above 18% as a buffer.
Answered by Jairam Sridharan
Asked by Piran Engineer: Why raise capital if leverage is already comfortable?
p. 17
“as a management team, we would feel a lot more comfortable if we stayed above 18%. Since we are at 18.85% right now, we thought this is a good time to seek an enabling resolution to be able to raise capital as and when necessary, through the course of the year.”
Jairam Sridharan, page 17 of the filed PDF · View the filing
Jairam said the uptick was traced to a few idiosyncratic cases and there was no systemic anxiety from the ground, unlike the earlier UBL stress period.
Answered by Jairam Sridharan
Asked by Nischint: Is the small sequential uptick in LAP 90 DPD a concern, and how does it compare to the earlier UBL stress?
p. 20
“In LAP you know, there are kind of one or two odd cases here or there that are kind of giving us some pause, but systematically we are not hearing any anxiety or concern from the ground level.”
Jairam Sridharan, page 20 of the filed PDF · View the filing
Management said competitive intensity has not materially increased despite market perception, and attributed most of the NIM decline to fewer days in the quarter and a reduction in direct assignment sales.
Answered by Jairam Sridharan
Asked by Anand Dama: Is mortgage price competition intensifying, and what explains the quarter-on-quarter NIM decline?
p. 21
“On a quarter-on-quarter basis, I'm actually not seeing that much incremental, you know, competitive intensity.”
Jairam Sridharan, page 21 of the filed PDF · View the filing
Jairam said PCR is an output of ECL modelling and product mix rather than a target, and its recent rise partly reflects a voluntary tightening of provisioning assumptions.
Answered by Jairam Sridharan
Asked by Subramanian K: How should investors think about the trajectory of the provision coverage ratio (PCR)?
p. 23
“PCR is an output, not an input to our decision-making.”
Jairam Sridharan, page 23 of the filed PDF · View the filing
Risks flagged
Emerging stress signals among IT-sector salaried customers, particularly in secured products in South India
p. 8
“We are seeing some signs of increasing stress in this segment in recent months.”
Jairam Sridharan, page 8 of the filed PDF · View the filing
Elevated wholesale loan prepayments acting as a growth headwind
p. 9
“The strong prepayment trend continues as we have seen over the past few quarters as well, and is providing to be a major growth headwind for our wholesale business, but it also highlights robust portfolio performance.”
Yesh Nadkarni, page 9 of the filed PDF · View the filing
Small uptick in LAP 90+ DPD driven by idiosyncratic borrower cases, requiring continued monitoring
p. 19
“Well, it seems like a series of idiosyncratic things, but then it becomes a cycle. So, let's say my seat belts are very much on in the LAP business, and we have to keep watching.”
Jairam Sridharan, page 19 of the filed PDF · View the filing
Potential lagged impact on small businesses from the Middle East conflict remains unknown
p. 13
“I don't know whether there's going to be a lagged impact, so we will wait and see.”
Jairam Sridharan, page 13 of the filed PDF · View the filing
Weak organic demand in small-ticket housing loans across the industry
p. 22
“At an industry level, the growth -- the industry is growing very low single digits or even in some pockets negative.”
Jairam Sridharan, page 22 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.