Piramal Finance Ltd

Change in Senior Management

• Mr. Viral Gandhi, President & Group CIO, ceases to be SMP of Piramal Finance, effective 30 September 2026.
• Reason: Transition to a new role within the Piramal Group.
• Brief profile: Not Applicable.
• Disclosure of relationships: Not Applicable.

Issuance overview

• Type of security: Secured, rated, listed, redeemable NCDs.
• Issuance: Non-convertible debentures on private placement.
• Base issue size Rs 500 crore.
• Green shoe option up to Rs 1500 crore, aggregate Rs 2000 crore.
• Face value Rs 1,00,000 per debenture.
• Proposed listing on BSE and NSE within 3 working days.
• Tenure: 3 years 45 days.
• Allotment date: 8 October 2026.
• Maturity date: 22 November 2029.
• Coupon: 8.62% p.a., payable annually and on redemption.

Security and covenants

• Security: First ranking pari-passu charge over hypothecated assets.
• Security cover: Maintain minimum 1x security cover.
• Default interest: 2% p.a. on default until cured.
• Special rights attached: Not applicable.

Insurance commission income

• FY26 insurance commission income totaled ~Rs 200 crore; life ~Rs 140 crore, non-life ~Rs 60 crore.
• Piramal Finance exclusively distributes Pramerica Life Insurance; PFL is promoter with 50% of PLI.
• If IRDAI's consultation paper becomes effective 1 Apr 2027, life revenue impact 18-24 bps on FY28 RoA.
• Company maintains natural P&L hedge as promoter; improvements at PLI flow through to Piramal Finance.
• Rationalisation of sales incentives and product clawbacks could cushion profitability.
• Near term, company expects to meet FY27e net profit growth guidance ~50% YoY.

Business overview

• Consolidated results after the September 2025 Piramal Enterprises merger.
• Core business: retail lending and wholesale lending.
• AI-native platform Piramal.ai expanding underwriting, CX, and collections.
• 780-branch retail network; 82% customers outside tier-1 markets.
• Gold loans launched; Phase 2 rollout; target 200 branches FY27.

Operational highlights

• Retail AUM up 32% YoY; disbursements up 44% YoY.
• Wholesale disbursements ₹2,604 Cr; repayments 74% of disbursements.
• Piramal.ai suite expanding underwriting, CX, and collections.
• Pia investor assistant launched for investor interactions.
• Gold loans: 1st full month; Phase 2 rollout underway; branching target.

Financial performance

• Total income ₹1,693 Cr; YoY 37%.
• Net interest income ₹1,442 Cr; YoY 43%.
• PPOP ₹804 Cr; YoY 89%.
• Net profit ₹461 Cr; YoY 67%.
• Total AUM ₹95,369 Cr (Jun-26); Growth AUM aided consolidation.
• LCR 553%; Capital adequacy 18.85%.

Capital structure & liquidity

• Gross debt ₹82,345 Cr; Net worth ₹28,906 Cr.
• Cash & liquid investments ₹6,925 Cr.
• Total assets ₹111,251 Cr; long-standing diversified funding mix.
• Credit ratings: AA+ (domestic); S&P BB; Moody's Ba3.

Strategic priorities & outlook

• Strategy focuses on AI-native growth and multi-product retail platform.
• Growth drivers include AI-led underwriting, growth, CX, and collections.
• Branch expansion and cross-sell to deepen customer engagement.

Risks & governance

• Asset quality remains monitored; GNPA 2.4%, NNPA 1.6% (Jun-26).
• Piramal.ai and Pia adoption governance enhancements for investor communications.

Business overview

• Piramal Finance is a multi-product retailer and wholesale lender with AI-enabled platforms.
• Post-merger with Piramal Enterprises, Growth AUM and AI drive scale.
• Retail AUM dominates growth; expanding branch network and unsecured lending.
• Gold loans launched; Phase 2 rollout and 200 branches target by FY27.

Operational highlights

• Retail AUM up 32% YoY to ₹91,249 Cr; AUM mix 85:15.
• Total AUM ₹1,06,940 Cr; Growth AUM up 32% YoY.
• Branch network expanded to 780 branches across 26 states.
• Gold loans started; ₹6 Cr in first full month (Jun-26).
• Unsecured disbursements grew; cross-sell 25–30% of unsecured disbursals.
• Total customer franchise reached 6 million.

Financial performance

• Total income ₹1,693 Cr, up 37% YoY.
• Net interest income ₹1,442 Cr, up 43% YoY.
• PPOP ₹804 Cr, up 89% YoY.
• Net profit ₹461 Cr, up 67% YoY; exceptional items ₹1,590 Cr.
• AUM ₹95,369 Cr; gross debt ₹82,345 Cr; net worth ₹28,906 Cr.
• Capital adequacy 18.85%; GNPA 2.4%; NNPA 1.6%.

Capital structure & liquidity

• Debt-to-equity ratio 2.8x; cash & liquid investments ₹6,925 Cr.
• LCR 553% on period average.
• Total provisions ₹2,167 Cr; provision coverage 2.3% of total AUM.

Strategic priorities & outlook

• AI-native growth strategy; Piramal.ai deployed across five business areas.
• Growth AUM target; maintain stable risk and strong CX.
• Cost-to-income ratio trend improving; opex up 10% YoY.
• Gold loan expansion to 200 branches; broaden rural and tier-2 markets.

Risks & governance

• Asset quality remains a focus; delinquency metrics monitored with provisions.
• Regulatory and macro risks inherent in lending; forward-looking statements disclosed.
• No material governance changes disclosed; merger integration completed post-Sept 2025.

Governance & leadership

• Merger with Piramal Enterprises completed prior to Q1 FY27.
• IR contacts disclosed for investor inquiries.

NCD Allotment

• Committee approves allotment of 110,000 NCDs on private placement.
• Face value Rs 1,00,000 per NCD; total size Rs 1,100 crore.
• NCDs to be listed on NSE and BSE, with NSE designated exchange.
• Meeting held on 21 September 2026, 10:45–11:00.
• NCDs are secured, rated, listed, redeemable, non-convertible.

Purpose

• Special resolution to raise capital via convertible warrants for promoter group.

Resolution details

• Type and nature: Special resolution for capital raise via warrants convertible to equity.
• Key terms: Private placement to Nithyam Realty Private Limited; up to Rs 1,750.03 crore.
• Promoter group interest: Yes; resolution passed with requisite majority.
• Votes: In favour 184,050,818; against 109,075; total polled 184,159,893.

Outcome

• Approved by requisite majority; promoter group voted in support.

Impact on ownership

• Capital raise via warrants to promoter group may alter future equity structure.

Governance & disclosures

• EGM held via VC/OAVM; Scrutinizer's report and voting results published.

Resolution details

• Type: Special resolution for warrants convertible into equity via private preferential issue.
• Allottee: Nithyam Realty Private Limited, promoter group.
• Aggregate size: up to Rs 1,750 crore 3 lakh 40 thousand.
• Promoter/director interest: Anand Piramal deemed interested and did not attend.
• Chairman: Jairam Sridharan, MD & CEO, chaired the EGM.
• Outcome: Resolution approved by requisite majority.

Business overview

• Lending platform with retail and wholesale segments across secured, unsecured, MSME loans.
• AI-driven underwriting and CX via Piramal.ai; Pia investor assistant launched.
• Q1 FY27: AUM growth 25% YoY.

Operational highlights

• Retail AUM up 32% YoY to ₹91,249 Cr.
• Wholesale disbursements ₹2,604 Cr; up 27% YoY.
• LCR on period average 553%; capital adequacy 18.85%.
• Legacy AUM now ~2% of total AUM.
• Pia AI investor relations agent launched for IR.

Financial performance

• Total income ₹1,693 Cr; YoY +37%.
• Net interest income ₹1,442 Cr; YoY +43%.
• PPOP ₹804 Cr; YoY +89%.
• Net profit ₹461 Cr; YoY +67%.
• Consolidated assets ₹111,251 Cr; total AUM ₹95,369 Cr.

Capital structure & liquidity

• Gross debt ₹82,345 Cr; cash and liquid investments ₹6,925 Cr.
• Provision coverage 2.3% of total AUM; GNPA 2.4%; NNPA 1.6%.
• Total assets ₹111,251 Cr; capital adequacy 18.85%.

Strategic priorities & outlook

• AI-native growth strategy to scale Growth AUM and cross-sell.
• Rural expansion via micro-lending as part of multi-product platform.
• 535 branches across formats; 82% customers outside tier-1.

Risks & governance

• Asset quality metrics indicate steady risk (GNPA 2.4%; NNPA 1.6%).
• Provisioning levels and ECL coverage monitored to align with growth.

Business overview

• Multi-product retail and wholesale lending platform leveraging AI-native growth (Piramal.ai).
• Strategic emphasis on scalable retail model and controlled risk.

Key operational highlights

• Retail AUM rose 32% YoY to ₹91,249 Cr; disbursements up 44% YoY.
• Gold loans Phase 1 rollout complete; Phase 2 started; target 200 branches FY27.
• Unsecured products growth; cross-sell franchise 25–30% of unsecured disbursals.
• Wholesale AUM ₹13,238 Cr; 27% YoY; disbursements ₹2,604 Cr.
• Repayments 74% of disbursements; prepayments ₹1,030 Cr.
• 82% customers outside Tier-1 markets; urban branches expanding.
• Piramal.ai suite underpins underwriting, CX, and collections.

Financial performance

• Total income ₹1,693 Cr; up 37% YoY.
• Net interest income ₹1,442 Cr; up 43% YoY.
• PPOP ₹804 Cr; up 89% YoY.
• Net profit ₹461 Cr; up 67% YoY.
• Opex ₹889 Cr; up 10% YoY.
• AUM total ₹95,369 Cr; Growth AUM up 25% YoY.
• Retail AUM ₹91,249 Cr; YoY growth 32%.

Capital structure & liquidity

• Cash & liquid investments ₹6,925 Cr.
• Total assets ₹111,251 Cr; Gross debt ₹82,345 Cr; Net worth ₹28,906 Cr.
• Disclosures on diversification via MF, ECB & securitisation.
• Consolidated LCR 553%; Capital adequacy 18.85%.

Strategic priorities & outlook

• AI-led growth across multi-product platform to sustain AUM expansion.
• Enhance cross-sell, branch productivity, and risk-adjusted profitability.

Risks & mitigation

• Asset quality remains focus; GNPA 2.4%, NNPA 1.6%, provisions 2.3% of AUM.

Governance & leadership

• AI-powered investor relations tools (Pia) launched to support disclosures.