Piramal Enterprises (PEL) Q2 25/26 earnings summary

Executive summary

• Marked the first earnings call post-merger of Piramal Enterprises Ltd with Piramal Finance, with Ajay Piramal stepping down as Chairman and Anand Piramal taking over leadership.

• Company is now among India's fastest-growing upper-tier NBFCs, serving over 5 million customers and disbursing 2.5 million loans, focusing on affordable housing, business loans, and microfinance.

• Strategic investments in AI and analytics, with 45 live AI use cases, are driving improvements in underwriting, productivity, growth, and customer experience.

Financial highlights

• Q2 FY 2026 profit after tax reached INR 327 crore, up 101% year-over-year.

• Retail disbursements and AUM both grew 36% YoY; wholesale 2.2 AUM up 43% YoY; consolidated AUM up 22% YoY.

• Cost of borrowings fell by 19 bps QoQ to below 9% after five quarters above that level.

• Growth business NIM increased by 10 bps QoQ; growth business credit cost at 1.7% in Q2.

• Operating profit for growth business rose 73% YoY to INR 687 crore.

Outlook and guidance

• Targeting to double AUM to over INR 1.5 lakh crore by FY 2028.

• Aiming for sustainable ROAUM above 3% in steady state.

• Full-year profit guidance reiterated at INR 1,300–1,500 crore, with INR 600 crore delivered in H1.

• No capital raise expected through FY 2026 and FY 2027, barring a drop in capital adequacy below 18%.