Piramal Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Piramal Finance Ltd filed with BSE on 30 Apr 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 consolidated net profit of INR1,506 crores for FY26, up 3x year-on-year, with total AUM crossing INR1 lakh crores after growing 25% year-on-year. Management said the Legacy book was reduced 59% year-on-year to INR2,807 crores while the retail business grew 33% to INR85,885 crores, now forming 85% of total AUM. Management also discussed credit rating upgrades to AA+, branch network expansion into gold loans and rural lending, and set FY27 targets for AUM growth, profit growth, and return on AUM.
Numbers mentioned
Total AUM: INR1,01,230 crores (FY26)
p. 4
“On a consol basis, AUM was up 25% year-on-year and we ended the year at INR1,01,230 crores.”
Jairam Sridharan, page 4 of the filed PDF · View the filing
Legacy book: INR2,807 crores (FY26)
p. 3
“We have completed our AUM mix transition with the Legacy book down 59% year-on-year to INR2,807 crores versus the target of reducing it to INR3,000 crores to INR3,500 crores.”
Anand Piramal, page 3 of the filed PDF · View the filing
Retail AUM: INR85,885 crores (FY26)
p. 3
“In FY26, it grew 33% year-on-year to INR85,885 crores.”
Anand Piramal, page 3 of the filed PDF · View the filing
Consolidated net profit: INR1,506 crores (FY26)
p. 4
“For FY26, we have reported a consolidated net profit of INR1,506 crores versus the target of INR1,300 to INR1,500 crores.”
Anand Piramal, page 4 of the filed PDF · View the filing
Q4 consolidated net profit: INR502 crores (Q4 FY26)
p. 8
“in Q4 FY26, we reported consolidated net profit of INR502 crores versus Q4 FY25 net profit of INR102 crores.”
Vikash Singhla, page 8 of the filed PDF · View the filing
Return on AUM (Growth business): 2.1% (Q4 FY26)
p. 4
“In Q4, we exited at RoAUM of 2.1% versus 1.7% in Q4 FY25.”
Anand Piramal, page 4 of the filed PDF · View the filing
Consolidated NIM: 6.5% (Q4 FY26)
p. 5
“our consolidated level NIM expanded 20 bps quarter-on-quarter to 6.5%, which you will see on Slide 15.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
Cost of borrowing: 8.84% (Q4 FY26)
p. 5
“Cost of borrowing during the quarter declined by 11 basis points on a Q-o-Q basis to 8.84%.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
Wholesale 2.0 AUM: INR12,538 crores (March 2026)
p. 7
“As at March 2026, the Wholesale 2.0 book stood at INR12,538 crores, which was a growth of about 38% year-on-year.”
Yesh Nadkarni, page 7 of the filed PDF · View the filing
Retail 90+ delinquencies: 0.6% (Q4 FY26)
p. 4
“retail 90 plus delinquencies down 20 basis points quarter-on-quarter to 0.6%.”
Jairam Sridharan, page 4 of the filed PDF · View the filing
Growth business credit cost: 1.5% (Q4 FY26)
p. 4
“Growth business credit cost was also down marginally quarter-on-quarter to 1.5%.”
Jairam Sridharan, page 4 of the filed PDF · View the filing
GNPA / NNPA: 2.3% / 1.6% (Q4 FY26)
p. 8
“Our total GNPA and NNPA were down 30 bps quarter-on-quarter each to 2.3% and 1.6%, respectively.”
Vikash Singhla, page 8 of the filed PDF · View the filing
Net worth: INR28,191 crores (March 2026)
p. 8
“Our net worth stands at INR28,191 crores.”
Vikash Singhla, page 8 of the filed PDF · View the filing
Capital adequacy: 19.8% (March 2026)
p. 8
“Our capital adequacy is very strong at 19.8% as on March 2026.”
Vikash Singhla, page 8 of the filed PDF · View the filing
Average quarterly LCR: 450% (Q4 FY26)
p. 7
“Our average quarterly LCR in Q4 was 450%.”
Jairam Sridharan, page 7 of the filed PDF · View the filing
Cash and cash equivalents: INR8,640 crores (Q4 FY26)
p. 7
“We have cash and cash equivalents of INR8,640 crores, equivalent to 8% of all our assets.”
Jairam Sridharan, page 7 of the filed PDF · View the filing
Total token volume: 178 billion tokens (Q4 FY26)
p. 6
“In Q4, our total token volume was at 178 billion tokens in the quarter versus 63 billion in the first quarter of this year.”
Jairam Sridharan, page 6 of the filed PDF · View the filing
Total branch network: 701 branches (Q4 FY26)
p. 5
“In all, our total branch network has crossed 700 in this quarter and stands at 701.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
Micro loans AUM: INR1,384 crores (FY26)
p. 5
“Our micro loans AUM was up 42% year-on-year from a small base to INR1,384 crores.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
Assessed tax losses: INR24,600 crores (FY26)
p. 4
“We also added INR10,110 crores to our assessed tax losses, totaling total assessed tax losses to INR24,600 crores.”
Anand Piramal, page 4 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.
Total AUM growth — approximately 25% · FY27
stated firmly by Jairam Sridharan
p. 7
“We expect another year of approximately 25% growth in total AUM.”
Jairam Sridharan, page 7 of the filed PDF · View the filing
Consol profit growth — approximately 50% · FY27
stated firmly by Jairam Sridharan
p. 7
“we expect consol profits to also grow at approximately 50%”
Jairam Sridharan, page 7 of the filed PDF · View the filing
Return on AUM — approximately 2.5% · exit FY27
stated firmly by Jairam Sridharan
p. 7
“we expect to exit FY27 with a return on AUM of approximately 2.5% versus the 2.1% we reported in Q4 FY26.”
Jairam Sridharan, page 7 of the filed PDF · View the filing
AUM target — INR1,50,000 crores · FY28
stated firmly by Jairam Sridharan
p. 4
“We thus stay very much on track for our stated goal of INR1,50,000 crores by FY28.”
Jairam Sridharan, page 4 of the filed PDF · View the filing
Gold loan branches — approximately 200 branches · FY27
stated firmly by Jairam Sridharan
p. 5
“We expect to open 180 more gold loan branches in FY27 to take our gold loan branch count to approximately 200.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
Cost of borrowing benefit from rating upgrade — 50 to 80 basis points · over the coming years
stated conditionally by Jairam Sridharan
p. 5
“Domestic credit rating upgrade from AA to AA+ has the potential to lower our cost of borrowing by 50 to 80 basis points once we churn our current borrowing stack out and replace it with new borrowings.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
Leverage (AUM to equity) — 4.5 to 5x
stated as an aspiration by Jairam Sridharan
p. 4
“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 — FY27
stated as an aspiration by Jairam Sridharan
p. 6
“the continued productivity gains for our employees and branches have the potential to take our retail opex to AUM a little bit lower than current levels over FY27.”
Jairam Sridharan, page 6 of the filed PDF · View the filing
ROE uplift from rating upgrade — 3% to 4% percentage points
stated as an aspiration by Jairam Sridharan
p. 5
“All of this could lift steady-state ROEs by 3% to 4% percentage points.”
Jairam Sridharan, page 5 of the filed PDF · View the filing
Legacy book reporting — cease reporting as separate segment · during the course of this year
stated conditionally by Jairam Sridharan
p. 7
“one should expect that somewhere along the course of this year, we would cease reporting Legacy as a separate segment.”
Jairam Sridharan, page 7 of the filed PDF · View the filing
Opex to assets — another 50 basis points
stated as an aspiration by Jairam Sridharan
p. 15
“I believe that we have another kind of, you know, 50 odd basis points that we can still do.”
Jairam Sridharan, page 15 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.
Management said consol NIM will converge with Growth NIM around 7% as the Legacy book shrinks, driven by product mix shift toward unsecured/gold and the AA+ rating lowering cost of borrowing.
Answered by Jairam Sridharan
Asked by Shreya Shivani: Where is the consol NIM headed and what are the levers for further NIM expansion?
p. 8
“Obviously, consol NIM and Growth NIM will become effectively the same, hopefully it was the latter half of this coming year as the Legacy book becomes smaller and smaller.”
Jairam Sridharan, page 8 of the filed PDF · View the filing
Management attributed the dip to a one-time reversal of fee income to help their life insurance associate and said normal levels would return quickly.
Answered by Jairam Sridharan
Asked by Harshit Toshniwal: Why was fee income low in Q4 and where should it normalize?
p. 10
“There was a one-time event that we had in Q4 where we reversed some fee income in aid of our associate company, which is our life insurance company, for some technical reasons.”
Jairam Sridharan, page 10 of the filed PDF · View the filing
Management said opex reduction and cost of borrowing improvements have enough room to offset any credit cost normalization.
Answered by Jairam Sridharan
Asked by Harshit Toshniwal: How will the 2.5% ROAUM target be achieved given credit costs may normalize upward?
p. 10
“we believe there is enough play in the first two that we can hit 2.5% by Q4 of the coming year, even if there is some normalization of credit cost.”
Jairam Sridharan, page 10 of the filed PDF · View the filing
Management said there could be a few hundred crores of potential write-backs but declined to give a specific amount or timeline.
Answered by Jairam Sridharan
Asked by Harshit Toshniwal: Should investors expect recoveries from the Legacy book provisions?
p. 11
“there are a few hundred crores, I will not specify an exact amount, I'll just say that there are a few hundred crores of potential kind of write-backs that you can expect.”
Jairam Sridharan, page 11 of the filed PDF · View the filing
Management estimated three to four quarters of runway given current consumption rates.
Answered by Jairam Sridharan
Asked by Harshit Toshniwal: How much capital runway does the company have before needing to raise more?
p. 11
“So we have like maybe four quarters of runway, three to four quarters of runway depending on how you look at it and the kind of profitability we have in the coming year.”
Jairam Sridharan, page 11 of the filed PDF · View the filing
Management explained three roughly equal deductions: business-as-usual items, DTA, and investments, with the investment deduction likely shrinking as divestments continue.
Answered by Jairam Sridharan
Asked by Avinash Singh: What are the deductions between net worth and net owned funds for capital adequacy purposes?
p. 12
“Those three things roughly equally distributed, about INR2,500 crores to INR2,700 crores each, right, is the number in all three of them.”
Jairam Sridharan, page 12 of the filed PDF · View the filing
Management said roughly INR16,000 crores of future profits are tax protected, usable as long as consumed within about seven years.
Answered by Jairam Sridharan
Asked by Avinash Singh: How long can the company use its accumulated tax losses?
p. 12
“So however long it takes for us to consume INR16,000 odd crores, as long as that period is less than seven years, till about 2032, then we can keep using it.”
Jairam Sridharan, page 12 of the filed PDF · View the filing
Management said stock cost of borrowing was 8.8% while incremental long-term borrowing cost was 8.4%, with no short-term borrowing recently.
Answered by Jairam Sridharan
Asked by Nischint Chawathe: What is the difference between incremental and average cost of funds?
p. 13
“Our incremental borrowing cost for long-term money was 8.4%.”
Jairam Sridharan, page 13 of the filed PDF · View the filing
Management said they remain interested in microfinance, gold loans, and MSME but have found no assets priced at value, so nothing is imminent.
Answered by Jairam Sridharan
Asked by Nischint Chawathe: Is the company considering inorganic growth or M&A?
p. 14
“We remain interested in the spaces of microfinance, gold loans, MSME, any of these spaces, you know, we remain interested and we do look at a lot of deals, but nothing's imminent.”
Jairam Sridharan, page 14 of the filed PDF · View the filing
Management pointed to opex reduction and lower cost of borrowing as the two big favorable drivers, able to absorb any credit cost uptick.
Answered by Jairam Sridharan
Asked by Abhijit Tibrewal: What are the key levers for the ROAUM expansion to 2.5%?
p. 15
“you should expect to see the cost of borrowing and cost of opex are the two big areas of favourability and that's what will drive all the delta.”
Jairam Sridharan, page 15 of the filed PDF · View the filing
Management said any effect would show with a lag, likely visible around July-August, and that they are watching bounce rates closely for early signals.
Answered by Jairam Sridharan
Asked by Abhijit Tibrewal: Why hasn't the unsecured segment shown stress from the West Asia conflict yet, and when might it?
p. 16
“My guess is July-August is when you can actually see that outcome, if at all.”
Jairam Sridharan, page 16 of the filed PDF · View the filing
Management said these were markdowns taken to strengthen the balance sheet using one-time gains from the Piramal Imaging and Shriram Life sales.
Answered by Jairam Sridharan
Asked by Vikram Damani: What do the INR900 crore fair value loss and INR590 crore impairment line items represent?
p. 16
“What the line items you're referring to are our ways of strengthening the balance sheet i.e. identifying either areas where potentially in the future some losses could come and to pre-empt that and actually take, you know, roll that to now and then take the hits now itself”
Jairam Sridharan, page 16 of the filed PDF · View the filing
Management said opex to assets will continue to fall next year, prioritizing the opex curve over branch growth if a tradeoff arises.
Answered by Jairam Sridharan
Asked by Vikram Damani: Will opex to AUM rise as branch expansion continues from 700 to 880 branches?
p. 17
“We have come up with our branch plan in such a way that our opex to assets will continue to fall.”
Jairam Sridharan, page 17 of the filed PDF · View the filing
Risks flagged
Geopolitical disruptions in the Gulf and volatile crude oil prices
p. 3
“during the last few weeks of this quarter, geopolitical disruptions in the Gulf have created a volatile global macroeconomic environment.”
Anand Piramal, page 3 of the filed PDF · View the filing
Vulnerability of MSME sectors including F&B, travel, logistics, textiles, gems and jewellery, food processing to the Iran conflict
p. 6
“we have since expanded our watch list to include a broader set of sensitive sectors, including travel and logistics, textiles, gems and jewellery, food processing, etcetera.”
Jairam Sridharan, page 6 of the filed PDF · View the filing
Elevated risk in smaller ticket mortgages with MSME customers
p. 6
“We had earlier flagged a part of this business as potentially problematic given increasing risk levels.”
Jairam Sridharan, page 6 of the filed PDF · View the filing
Potential future impact of the war on unsecured lending customers with a lag
p. 15
“if the war continues for a while longer, it is inconceivable that you will see no effect. This cannot happen, the effect will definitely be there.”
Jairam Sridharan, page 15 of the filed PDF · View the filing
Strong repayments in wholesale book acting as a growth headwind
p. 7
“While strong rates of repayments continue to be a major growth headwind for us, it also highlights that the portfolio seasons very well and is performing well ahead of our underwriting.”
Yesh Nadkarni, page 7 of the filed PDF · View the filing
Volatility of digital loan volumes in downturns
p. 9
“you might recall that when digital was going through its peak in FY25, we had cut it by more than 60%.”
Jairam Sridharan, page 9 of the filed PDF · View the filing
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