Piramal Finance Q2 FY27 Net Profit Surges 66.8% YoY to ₹545 Crore as Margins Expand

Key numbers

P/E TTM	27.35xSector P/E 21.6x
Market Cap	₹46,143 CrMid-range Performer
Promoter Holding	44.22%No pledge reported
RSI	36.61Neutral zone

Key highlights

• Consolidated net profit reached ₹545 crore in Q2 FY27, representing a 66.8% increase over the same period last year
• Revenue from operations grew 27.6% year-on-year to ₹3,659 crore, driven by expansion in lending activities
• Operating margin significantly improved to 15.6% from 8.6% in the corresponding quarter of the previous fiscal
• Completed a Qualified Institutions Placement of 99.52 lakh shares at ₹2,110 per share, raising ₹2,099.99 crore
• Board approved a preferential issue of convertible warrants to promoter entity Nithyam Realty aggregating ₹1,750.03 crore
• Consolidated net worth as of September 30, 2026, climbed to ₹26,373.49 crore
• Standalone Capital to Risk-Weighted Assets Ratio (CRAR) remained robust at 20.10%

Strong Profitability Growth and Margin Expansion

Piramal Finance maintained its steady growth trajectory in the second quarter of the 2027 fiscal year, delivering a 66.8% year-on-year increase in net profit to ₹545 crore. The consolidated revenue from operations climbed to ₹3,659 crore from ₹2,872 crore in the corresponding period of the previous year. This performance aligns with management's earlier guidance from September 2026, which projected approximately 50% year-on-year growth in net profit for the full fiscal.

The company's bottom line was bolstered by an expansion in the operating margin, which reached 15.6%, a significant jump from the 8.6% reported in Q2 FY26. Total income for the quarter stood at ₹3,717 crore, supported by consistent fee and commission income.

Strategic Capital Raising to Support Growth

• Allotted 99,52,606 equity shares through a Qualified Institutions Placement (QIP) at an issue price of ₹2,110 per share
• Raised a total of ₹2,099.99 crore via the QIP route, net of issue-related expenses of ₹48 crore
• Approved a preferential issue of 82,94,000 convertible warrants to promoter entity Nithyam Realty Private Limited
• The warrant issue is expected to aggregate approximately ₹1,750.03 crore at ₹2,110 per warrant
• Received an initial payment of ₹437.51 crore, representing 25% of the warrant issue price, subsequent to the quarter-end
• The capital infusion is intended to fund onward lending and general corporate purposes

Asset Quality and Balance Sheet Position

The consolidated balance sheet as of September 30, 2026, showed total assets reaching ₹1,19,758 crore, up from ₹1,10,546 crore in March 2026. The lending book remained the primary asset component, with loans standing at ₹96,618 crore. Asset quality remained stable on a standalone basis, with the Gross NPA ratio (Stage 3 assets) at 2.40% and the Net NPA ratio at 1.66%.

The company's liquidity position remained healthy, with cash and cash equivalents of ₹2,054 crore on a consolidated basis. Total borrowings, including debt securities, were recorded at ₹85,673 crore, resulting in a consolidated debt-equity ratio of 2.75x.

What to watch next

• Finalization of the Scheme of Amalgamation involving subsidiaries, currently pending with the Hon'ble NCLT
• Exercise of convertible warrants by Nithyam Realty within 18 months from the date of allotment in August 2026
• Achievement of the medium-term target to exceed ₹1,50,000 crore in total AUM by the end of FY28

Piramal Finance · financial snapshot

Share price	₹1950
Market capitalisation	₹46,142.91 Cr
Revenue (annual)	₹11,852.49 Cr
Net profit (annual)	₹1,504.31 Cr
Revenue (latest quarter)	₹3,368.27 Cr-1.63% vs previous quarter
Net profit (latest quarter)	₹459.12 Cr-8.35% vs previous quarter
P/E (TTM)	27.35×Sector 21.6×
Promoter holding	44.22%-1.94% QoQ
FII holding	15.61%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.