Piramal Finance Q2 Results October 19, 2026: Profit Up 67% to ₹545 Crore as Costs Ease

Piramal Finance Q2 results show a lender whose costs are finally catching up with its growth story. The NBFC reported consolidated profit after tax of ₹545 crore for the July-September quarter, up 67% from ₹327 crore a year ago and 18% higher than the ₹461 crore it made in the June quarter, according to the press release it filed with BSE on October 19, 2026. First-half profit came to ₹1,006 crore, also up 67%.

Piramal Finance Q2 results in numbers

All figures below are consolidated, for the quarter ended September 30, 2026, and compare with the same quarter last year unless we say otherwise.

• Net interest income: ₹1,530 crore, up 35% from ₹1,132 crore, and up 6% from ₹1,438 crore in Q1.
• Total income (net of interest costs): ₹1,767 crore, up 33%.
• Operating expenses: ₹921 crore, up only 13%.
• Pre-provision operating profit: ₹846 crore, up 64% from ₹515 crore.
• Loan loss provisions: ₹302 crore, against ₹248 crore a year ago and ₹455 crore in the June quarter.
• Assets under management: ₹1,13,112 crore, up 24%. Retail AUM grew 30% to ₹97,462 crore and now makes up 86% of the book. Wholesale AUM rose 24% to ₹13,978 crore.
• Retail disbursements: ₹14,646 crore, up 34%.

The Financial Express put revenue from operations at ₹3,659 crore, up 27% from ₹2,871 crore.

Where the profit jump came from

The cleanest way to read this quarter is the gap between income and costs. Net income grew 33% while operating expenses grew 13%, so the cost-to-income ratio dropped to 52.1% from 61.2% a year ago. That single change does most of the heavy lifting. Profit before tax and associate income more than doubled, up 103% to ₹543 crore.

The quarter-on-quarter jump has a different driver. Provisions fell 34% from the June quarter, and that explains much of the 18% sequential rise in profit.

Is the 67% flattered by one-offs? Not really, but the tax line is messy. A year ago, the company booked a tax credit of ₹78 crore alongside ₹81 crore of exceptional charges, which included ₹60 crore of merger-related costs. Those two roughly cancelled out. This quarter it paid ₹35 crore in tax. Associate income, from its alternatives business and the Pramerica Life stake, actually fell to ₹37 crore from ₹63 crore.

The net income margin widened 35 basis points to 6.5%, flat on the June quarter. Cost of borrowing held at 8.79%, and the company says its incremental long-term debt cost fell to 8.46% in the first half from 8.67% in the second half of FY26.

Asset quality, capital and the new board member

Gross NPA stood at 2.4% and net NPA at 1.7%. Credit cost in the growth business, which excludes the discontinued legacy book, was steady at 1.5%. Retail loans 90 to 180 days past due came to 0.7%.

On capital, Piramal Finance raised ₹3,850 crore: ₹2,100 crore through a QIP and ₹1,750 crore through warrants allotted to the promoter group. Net worth is now ₹31,180 crore, and AUM is 3.6 times equity. Moody’s upgraded its rating to Ba2 from Ba3 with a stable outlook. The board also brought in former SBI chairman Dinesh Kumar Khara as an independent director for five years.

The stock closed Monday at ₹1,948.70, flat on the day, and the Financial Express notes it had fallen 15% over the past month.

Our take: costs are the story to watch. Mortgages, at ₹64,650 crore, are already 57% of total AUM, and that kind of book can keep compounding if the cost ratio keeps falling. If provisions climb back toward Q1 levels, though, the sequential growth disappears fast. For how other lenders fared, see our Bajaj Finance Q2 results and the full October 19 results line-up. Our guide on how to analyse quarterly results covers pre-provision profit and cost ratios in more detail.

Disclaimer: This article is for information only and is not investment advice or a recommendation to buy or sell any security. Figures are from Piramal Finance’s Q2 FY27 press release filed with BSE and a report by The Financial Express, both linked above. Please consult a SEBI-registered investment adviser before making any investment decision.