<a href="https://www.mid-day.com/business/business-news/article/piramal-finance-raises-rs-3850-crore-via-qualified-institutional-placement-promoters-23647623" target="_blank" rel="none noopener">Non-banking financial company (NBFC) Piramal Finance</a> on Monday posted a 67 per cent increase in its consolidated net profit to Rs 545.42 crore for the second quarter ended September 30, 2026.
Its consolidated net profit in the same quarter last year had stood at Rs 326.99 crore, the company said in a regulatory filing.&nbsp;
The lender's core net interest income grew 35 per cent to Rs 1,530 crore during the quarter under review and the net income margin expanded 0.35 per cent over the corresponding period last year to 6.5 per cent.
<h2>NIM to expand</h2>
Piramal Finance's Managing Director and Chief Executive Jairam Sridharan said the company is uniquely positioned in the NBFC universe, and there is no threat to margins amid the rising interest rate environment, according to news agency PTI. He added that the lender will be able to expand NIMs by up to 0.20 per cent over the next year.
Rising rates increase an NBFC's borrowing costs but Sridharan said the company recently received a rating upgrade will help to reduce borrowing cost over the next 2-3 years and allow margin expansion.
<h2>Assets under management</h2>
<a href="https://www.mid-day.com/business/business-news/article/carnelian-asset-management-receives-sebi-approval-to-launch-mutual-fund-business-23641047" target="_blank" rel="none noopener">Assets Under Management (AUM)</a> increased 24 per cent on year to Rs 1,13,112 crore during the quarter under review, which was driven by 30 per cent year-on-year increase in Growth AUM, which excludes the discontinued legacy business.
However, according to Sridharan, the AUM growth would have been stronger had it not been for the high volume of early repayments ahead of scheduled terms. He added that nearly 70 per cent of the loans disbursed during the quarter were repaid within the same period.
He noted that early repayments are more common in the wholesale lending segment, particularly in the real estate sector, which has recorded the highest loan repayment ahead of schedule. He added that real estate AUM growth, currently at around 7 per cent for the quarter, could have reached 25 per cent, if not for the repayments, he said.
<h2>Asset quality</h2>
The company's <a href="https://www.mid-day.com/mumbai/mumbai-news/article/rbi-report-says-npas-of-indian-banks-fell-to-multi-decadal-low-of-2-1-per-cent-23609794" target="_blank" rel="none noopener">gross non-performing asset (GNPA)</a> ratio stood at 2.4 per cent during the September 2026 quarter compared to 2.6 per cent in the corresponding quarter last year.
Sridharan asserted the NBFC has not witnessed any stress in any segment, despite concerns that the West Asia crisis could affect small-business borrowers and the El Nino phenomenon could put pressure on the agricultural sector.&nbsp;
However, he reiterated that loans extended to salaried IT professionals in South India continue to show signs of stress. He said the company remains cautious when lending to this borrower category.
Meanwhile, Piramal Finance also announced the appointment of former SBI chairman Dinesh Kumar Khara as an independent director for the next five years.
(With inputs from PTI)

Net interest income grew 35 per cent to Rs 1,530 crore, while net income margin improved to 6.5 per cent during September quarter

Piramal Finance Q2FY27 net profit soars 67 per cent to Rs 545.42 crore

Bajaj Finance Q2FY27 net profit increases 29 per cent to Rs 6,367 crore

The lender's core net interest income grew 35 per cent to Rs 1,530 crore during the quarter under review and the net income margin expanded 0.35 per cent over the corresponding period last year to 6.5 per cent

Piramal Finance Q2FY27 net profit jumps 67 per cent to Rs 545.42 crore

Trending Stories

Latest Photos

Latest Videos

Latest Web Stories

Mid-Day Fast

Home / Business / Business News / Article / Piramal Finance Q2FY27 net profit jumps 67 per cent to Rs 545.42 crore