Piramal Finance

“we believe that our overall cost of borrowing at Piramal Finance on a stock basis will continue to be at similar or lower levels over the next 12 months.”

“we remain confident of meeting our near-term FY27 and medium-term guidance on growth, profitability and stability of earnings and risk performance.”

“Growth AUM was up 30% year-on-year, while the legacy book came down by 69% year-on-year.”

“Retail AUM grew by 30% year-on-year to INR97,462 crores.”

“Our mortgage business comprising housing loans and loan against property grew by 27% year-on-year to INR64,650 crores.”

“With our rating upgrade, our ability to serve these segments is significantly higher.”

“With risk performance under control, AUM growth in our 4 unsecured product categories -- personal loans, unsecured business loans, digital loans and rural micro loans all gained momentum. These AUMs were up 46% year-on-year to INR23,764 crores and now form 21% of the company's AUM.”

“Nevertheless, we do not expect any notable slowdown in borrowing activity with liquidity conditions remaining adequate.”

“The company's net income margin was flat quarter-on-quarter at 6.5%, which you can see on Slide 50.”

“Retail opex to AUM declined by 5 basis points on a quarter-on-quarter basis to 3.48%.”

“The continued productivity gains for our employees and branches, we believe, have the potential to take retail opex to AUM to further lower levels over FY27.”

“At a company level, our cost to income was 52% in the second quarter, down from 61% in the second quarter last year”

“Growth business credit cost was down by 10 bps quarter-on-quarter to 1.5%.”

“Leverage, i.e., AUM to equity was at 3.6x in the second quarter compared to 3.7x in the first quarter.”

“Following our domestic rating upgrades to AA+ between January and March 2026, cost of incremental long-term borrowing has declined from 9.36% in H1 FY26 to 8.67% in H2 and further to 8.46% in H1 FY27.”

“Our net worth stands at INR31,180 crores. Our capital adequacy is at 20.1% at the end of September 2026.”

“We are confident to stay comfortable on capital adequacy over the next few years while funding our growth and expanding the leverage.”

“As discussed in previous quarters, there are opportunity of non-dilutive regulatory capital release in our balance sheet, likely over the next 12 to 24 months.”

“In Q2, we completed a total equity fundraise of INR3,850 crores, including a QIP of INR2,100 crores and preferential allotment of warrants of INR1,750 crores to the promoter group.”

“In Q2, the QIP added almost 200 basis points to our capital adequacy.”

“It also had a positive impact of 5 bps on our RoAUM and it led to a reduction of just 0.1x in our Q2 end leverage.”

“I'm delighted to welcome Mr. Dinesh Kumar Khara, who joins today as an Independent Director for a 5-year term.”

“In these years, we made gains of more than INR3,000 crores from DHFL's stress book.”

“In Q2, along with the reduction in legacy book, we had a profit of INR90 crores from recovery in legacy business. With this, the company's overall credit cost was at 1.1% versus 1.8% in Q1 FY27.”

“Exactly. Write-backs that come, which we are using to create other buffers elsewhere.”

“The chunky reduction in legacy book in Q2 was PBT neutral.”

“Emerging global risks warrant close monitoring, particularly rising U.S. and Japanese sovereign bond yields and the prospect of crude oil prices remaining high for longer, which could amplify inflationary pressures and tighten global financial conditions.”

“If the consultation paper is implemented as it is with an effective date of 1st April 2027, we estimate a gross reduction in insurance commissions, potentially having 18 to 24 basis points of impact on FY28 return on assets.”

“We believe this can significantly cushion the impact on profitability on a net basis in FY28 and beyond.”

“Our overall retail 90-plus delinquency is at 0.7%, stable in a narrow range of 0.6% to 0.8% over the last 4 years.”

“First, in the IT sector, the last quarter, I had mentioned emerging risk challenges in home loans for IT sector customers from South India. That situation persists.”

“Against these aspirations, in Q2 FY27, our AUM was up 24% year-on-year to INR1,13,112 crores.”

“In Q2 FY27, our PAT was up 67% year-on-year to INR545 crores with underlying Growth business PBT of INR538 crores.”

“Thus, our H1 FY27 PAT is also up 67% year-on-year and crossed the INR1,000 crores mark.”

“There is a tax shield of INR16,000 crores of assessed carry-forward losses, mostly arising from DHFL still available to us.”

“Disbursements were up 34% year-on-year in the second quarter.”