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Informist, Monday, Oct. 19, 2026

 

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--Piramal Finance: Don't expect any slowdown in borrowing activity 
--CONTEXT: Comments by Piramal Fin's mgmt in post-earnings analyst concall 
--Piramal Finance MD: Expect AUM to double every 3 year, at INR 1.5 tln FY28 
--Piramal Finance MD:No adverse impact from weak monsoon on agri book so far 
--Piramal Finance: To stay comfortable on capital adequacy next few years 

 

By Pratiksha and Radhika Tiwari

 

NEW DELHI – Piramal Finance expects to double its assets under management every three years, Managing Director and Chief Executive Officer Jairam Sridharan said Monday. "Over the medium term as well, we expect our AUM to double every three years, implying an AUM of 1.5 lakh crores (INR 1.5 trillion) by FY28," he said at the post-earnings conference call with analyst. 

 

The non-banking financial company's total assets under management grew 24% on year to INR 1.13 trillion as on Sept. 30. Its retail assets under management rose 30% on year to INR 974.62 billion and wholesale assets under management grew 24% on year to INR 139.78 billion at the end of the September quarter.

 

"With risk performance under control, AUM growth in our four unsecured product categories personal loans, unsecured business loans, digital loans and rural micro-loans all gained momentum," Sridharan said. 

 

The company highlighted that its agriculture portfolio has not seen any negative impact from the weak monsoon so far. "In the last quarter, I had mentioned emerging risk challenges in home loans for IT sector customers from South India. That situation persists. The good news, however, is that it has not spread to other adjacent segments," it added. 

 

The company's retail disbursements rose 34% on year to INR 146.46 billion, and wholesale disbursements grew 28% on year to INR 26.15 billion in the September quarter.

 

The Mumbai-based company is confident of staying comfortable on capital adequacy over the next few years. Its capital adequacy ratio was 20.10% as of Sept. 30, down from 20.70% a year ago but up from 18.85% a quarter ago.

 

"H2 (Oct-Mar) FY27 (2026-27 (Apr-Mar)) is likely to see a broad-based increase in borrowing costs, in line with the RBI's shift from a neutral stance to calibrated tightening. Nevertheless, we do not expect any notable slowdown in borrowing activity with liquidity conditions remaining adequate," it said.

 

Talking about the impact of the Insurance Regulatory and Development Authority of India's recent draft norms on commission fee, the company said it estimates a gross reduction in insurance commission, potentially having 18-24 basis points' impact on FY28 return on assets, if the norms are implemented as proposed.

 

On Sept. 23, IRDAI, in a public consultation paper titled "Recalibrating Economics of Insurance Distribution", proposed sweeping changes to life insurance expenses, commissions, and market conduct. It has proposed commission limits for insurance distributors based on the complexity of sales and service, rather than a uniform approach. 

 

The company currently exclusively distributes life insurance products of Pramerica Life Insurance Ltd., where it has a 50% stake as a promoter. "Any improvement in economics of Pramerica Life Insurance will flow back proportionately to Piramal Finance during consolidation. Thus, the company has a natural hedge and a clawback available in the way the company is structured," Sridharan said.

 

"Apart from this, there are other localisation of sales incentives for selling of insurance and other forms of product clawback. We believe this can significantly cushion the impact on profitability on a net basis in FY28 and beyond," he added. 

 

The non-banking financial company's consolidated net profit rose 65% on year to INR 5.39 billion in Jul-Sept. Monday, shares of the company ended at INR 1,948.70 on the National Stock Exchange, down 0.1% from the previous close. The earnings were released post market hours. End

 

Edited by Deepshikha Bhardwaj

 

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