Piramal Finance Q4 FY26 profit jumps 9x, ₹11 dividend

What Piramal Finance reported for the March quarter

Piramal Finance, a non-banking finance company (NBFC), reported its March-quarter (Q4) results on April 27. The company said net profit rose nearly nine times year-on-year to ₹603 crore, compared with ₹64 crore in the same quarter last year. For the full financial year FY26, profit increased 168% to ₹1,540 crore.

The numbers come at a time when investors are tracking credit demand, funding costs, and asset-quality trends across NBFCs. Alongside earnings, the company also announced a dividend proposal and provided updates on AUM, retail performance, and collections.

Stock move before the results

Ahead of the results, Piramal Finance shares closed 1.23% lower on the BSE at ₹1,840.70. Over the last one year, the stock delivered a return of 38.92%, as per the data shared in the update. The company’s market capitalisation was stated at ₹41,540 crore.

Why profit jumped: deals and funding events

Piramal Finance attributed the sharp rise in profit to specific transactions and related inflows. It received about $148 million as deferred consideration from the sale of Piramal Imaging.

The company also sold its stake in Shriram Life Insurance for ₹600 crore. Separately, it raised $150 million of funding from IFC and ADB, according to the update.

AUM crosses ₹1 lakh crore in FY26

A key operational milestone was the growth in assets under management (AUM). Piramal Finance said its AUM grew 25% in FY26 to ₹101,230 crore, moving past the ₹1 lakh crore mark.

Within this, growth AUM increased 33% to ₹98,423 crore. The company also reported that the growth-to-legacy AUM mix improved to 97:03, indicating a sharper tilt towards the newer portfolio.

Margin and profitability indicators improved

The company reported a 14 basis point improvement in net income margin in Q4 FY26 to 6.5%. It attributed the improvement to a better portfolio mix and lower borrowing costs.

For FY26, the growth business delivered a pre-tax profit of ₹1,560 crore. RoAUM (return on average AUM) improved to 2.1% from 1.8% last year, as per the figures provided.

Asset quality remained steady, liquidity stayed strong

Piramal Finance said there was no major deterioration in asset quality. Gross NPA was reported at 2.3% and net NPA at 1.6%.

Net worth stood at ₹28,191 crore. The company also reported liquidity of ₹8,640 crore, described as around 8% of total assets.

Retail book drove growth; mortgages remained the largest piece

Retail remained the biggest growth driver in FY26. Retail AUM grew 33% to ₹85,885 crore, accounting for 85% of total AUM.

Within retail, mortgage AUM rose 32% to ₹57,837 crore. The company said mortgages were 67% of retail AUM and 57% of total AUM. It also reported product-wise growth in the retail segment in a range of 19% to 52%.

In Q4 FY26, retail disbursements increased 34% to ₹13,101 crore.

Wholesale 2.0 showed higher disbursements and repayments

The company’s Wholesale 2.0 AUM grew 38% to ₹12,538 crore. Quarterly disbursements rose 63% to ₹2,782 crore.

It also reported repayments of ₹2,268 crore during the quarter, including pre-payments.

AI-based collections and the reported pickup

Piramal Finance said it adopted an AI-based collection system, which helped improve recoveries. Monthly collections rose from ₹84 crore in Q1 FY26 to ₹834 crore by Q4.

Collections are closely watched in retail-heavy books because they provide a real-time view of repayment behaviour and underwriting performance. The company’s reported improvement suggests stronger on-ground execution, based on the disclosed numbers.

Dividend proposal and board decision

The board recommended a final dividend of ₹11 per share on equity shares with face value ₹2. This is described as 550%. The dividend will be paid after shareholder approval at the AGM.

The board also approved the re-appointment of Suhail Nathani as an independent director for five years.

Key numbers at a glance

Why these results matter for investors

The Q4 profit spike was driven in part by transaction-related inflows, including deferred consideration and a stake sale, alongside broader business performance indicators. Investors typically separate such one-off drivers from core profitability, but the update also pointed to operational traction through AUM expansion, improved margins, and stronger collections.

The AUM mix indicates the company’s increasing focus on the growth portfolio, with retail accounting for a large share of total assets. At the same time, stable reported GNPA and NNPA levels, along with stated liquidity, provide context on balance sheet resilience.

Closing note

Piramal Finance’s March-quarter update combined a sharp profit increase, a ₹11 per share dividend recommendation, and a set of operating indicators showing growth in AUM, retail disbursements, and collections. The next key milestone on the dividend will be shareholder approval at the AGM, as stated by the company.