Piramal Finance reports 67% profit surge on strong core income growth

Piramal Finance posted a 67 per cent year-on-year increase in net profit to ₹545 crore for the second quarter of fiscal 2027, signalling strong momentum across its lending operations. The financial performance was underpinned by a 35 per cent growth in core net interest income, which reached ₹1,530 crore, reflecting the company's expanding loan portfolio and improved pricing power.

Assets under management expanded 24 per cent during the quarter, while the company's net interest margin widened by 0.35 percentage points to 6.5 per cent, demonstrating its ability to grow lending volumes profitably. Operational metrics improved markedly, with the cost-to-income ratio contracting sharply to 52.1 per cent from 61.2 per cent in the prior-year period, reflecting better cost management and operational leverage across the organisation.

Managing Director and Chief Executive Jairam Sridharan stated that the company is uniquely positioned within the non-bank finance sector, noting that it does not anticipate margin compression despite rising interest rates in the current environment. He expressed confidence that the lender would achieve additional margin expansion of up to 0.20 percentage points over the coming year. The executive attributed this outlook to a recent rating upgrade that should support the company's funding profile and reduce borrowing costs, enabling it to maintain competitive advantage in a rising-rate scenario.