PIRAMALFIN Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,918 Cr
verified against source
Revenue YoY
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EBITDA
Pending
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What the record says.
Piramal Finance delivered a standout Q3 FY26 with consolidated PAT of Rs 400.1 crore surging 926% YoY from Rs 39 crore, driven by robust 23% AUM growth to Rs 96,690 crore. The growth business PBT crossed Rs 1,000 crore on a 9-month basis. Margins expanded 51 bps YoY to 6.3% with continued operating leverage improvement—OPEX to AUM fell to 3.8%. The landmark A+/credit rating upgrade from Crisil should lower borrowing costs by 50-80 bps and expand ROA trajectory toward the 3% target. Retail disbursements were intentionally front-loaded in H1; Q4 should see seasonal recovery. Two key leadership transitions announced—Imtiaz Ahmed as CBO and Vikas Aurora as COO effective April 1. 100 branches to open in Q4 (25 full-service, 20 gold loan, 55 microfinance). Monetization of Shriram Life stake (~Rs 600 crore) expected in Q4. Key risks include rising competition compressing yields in a falling rate environment and elevated repayments (66% of wholesale disbursements) moderating net book growth.
Colored figures show movement against the previous available record.
Guidance to track
- Growth book at 35% growth (9 months) represents 95% of total AUM. Management expresses high confidence the full-year 25% target will be met without dependence on exceptional Q4 performance.
- Medium-term plan reiterated for growth AUM exceeding Rs 1.5 lakh crore by end of FY28, implying continued 25%+ annual growth trajectory.
- Progressing toward 3% RO AUM target (from current 1.9% in growth business) and leverage target of 4.5-5x (from current 3.5x). ROA trajectory tied to A+ rating cost savings and operational leverage.
- Target range maintained despite Q4 branch expansion (~100 branches). Productivity gains expected to offset incremental costs; ratio fell 10 bps QoQ to 3.8% in Q3.
- 25 bps of transmission already experienced; expect further ~25 bps benefit as banks continue MCLR cuts. A+ rating upgrade should yield additional 50-80 bps reduction once borrowing stack churns.
Risks flagged
- Management flagged that 17%+ yield on personal loans may see 'a little bit' of compression in Q4 given tight competitive environment with single-digit rates offered by top-tier players to prime employees. Not considered structural but a cyclical Q4 effect.
- CEO of retail (Jagdeep) and COO (Sumit Madan) departing end of March. While management emphasizes strong internal pipeline and zero ramp-up time, the combined departure of both commercial and control heads represents a significant human capital shift during a high-growth phase.
- Less than Rs 10 lakh LAP is described as 'pretty much dead' in terms of risk performance—'in really bad shape.' Management has exited this market but the sub-segment continues to be monitored for broader spillover risk to larger LAP tickets.
- Rs 14,000-15,000 crore of DHFL NCDs remain on books (carried at 7.37% yield). First big principal tranche due next year (FY27). Replacement borrowing expected at similar cost given A+ upgrade, but refinancing risk in volatile rate environment remains.
Key quotes
- Our company delivered a strong performance in Q3, making it a strong 9-month period of FY26 with robust progress across all our important parameters. All this is without any major one-off gains in the last nine months.
- The stability and predictability are also visible in our credit risk outcomes with 90-day delinquencies stable quarter-on-quarter and credit costs down 10 basis points quarter-on-quarter.
- The upgrade by Crisil to A+ credit rating. This we believe has the potential to lower our cost of borrowing by 50 to 80 basis points once we churn our current borrowing stack out and replace it with new borrowing.
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