Piramal Finance (PIRAMALFIN) investor relations material

Executive summary

• Achieved 32% year-on-year growth in AUM to INR 106,940 crore, with retail AUM up 32% and wholesale AUM up 27%.

• Net profit rose 67% year-on-year to INR 461 crore, with ROAUM for the growth business at 1.9%.

• Retail lending now constitutes 85% of AUM, with a strong focus on operational efficiency and asset quality.

• Asset quality remained stable, with retail 90+ delinquencies at 0.7% and wholesale stage 2/3 assets below 0.2%.

• AI adoption, including the launch of investor assistant Pia, has driven productivity, customer experience, and risk management improvements.

Financial highlights

• Net interest margin improved by 47 bps year-on-year to 6.5%, with growth business NIM at 6.8%.

• Pre-provision operating profit grew 89% year-on-year to INR 804 crore.

• Cost-to-income ratio improved to 52.5% from 66% year-on-year.

• Credit cost for growth business at 1.6%; overall credit cost at 1.8% due to legacy provisioning.

• GNPA at 2.4%, NPA at 1.6%, and capital adequacy at 18.85%.

Outlook and guidance

• Targeting to double AUM in about 3 years and achieve ROAUM above 3%.

• Confident of meeting FY 2027 guidance on AUM growth, profit growth, and return on AUM.

• Continued focus on reducing opex-to-AUM and maintaining stable asset quality.

• Branch network expansion, especially in rural and gold loan segments, to drive growth.

• Operating leverage expected to improve further as AUM grows faster than OpEx.