Piramal Finance rural 90+ DPD falls to 0.4% in Q2 FY27, from 6.9%

Piramal Finance reported rural micro-loan 90+ days past due, or 90+ DPD, of 0.4% in Q2 FY27, down from a 6.9% peak in Q3 FY25 and Q4 FY25. The rural micro-loan portfolio was Rs 1,762 crore, or 2% of total assets under management (AUM), while retail-wide 90+ DPD was 0.7%.

How far did Piramal Finance’s rural micro-loan delinquency decline?

Piramal Finance’s rural micro-loan 90+ DPD declined by 6.5 percentage points from 6.9% in Q3 FY25 and Q4 FY25 to 0.4% in Q2 FY27. The deterioration began from 0.1% in Q1 FY24, rose to 1.4% in Q4 FY24, and accelerated to 2.5% in Q1 FY25 and 5.5% in Q2 FY25 before reaching the reported peak.

The reduction occurred through FY26 and into FY27. Rural micro-loan 90+ DPD fell to 3.7% in Q1 FY26, 1.8% in Q2 FY26, 1.0% in Q3 FY26 and 0.6% in Q4 FY26. It remained at 0.6% in Q1 FY27 and then decreased by a further 0.2 percentage points in Q2 FY27.

The current 0.4% reading is also below the levels reported at the start of the prior stress period. Rural 90+ DPD was zero through Q4 FY23, then rose to 0.6% in Q2 FY24 and 1.2% in Q3 FY24. The presentation does not attribute the subsequent rise or decline to a particular underwriting, collection or macroeconomic factor.

How significant are rural micro loans within Piramal Finance’s portfolio?

Piramal Finance’s rural micro-loan AUM was Rs 1,762 crore at Q2 FY27 and represented 2% of total AUM. Its retail portfolio had AUM of Rs 97,462 crore and accounted for 86% of total AUM at the same date, according to the retail-risk presentation.

The segment’s 2% share places its FY25 delinquency spike alongside a much lower retail-wide ratio. At Q4 FY25, rural micro-loan 90+ DPD was 6.9%, whereas retail overall 90+ DPD was 0.8%. By Q2 FY27, rural micro-loan DPD had declined below the retail-wide 0.7% ratio.

Piramal Finance reported rural-loan disbursements of Rs 610 crore in Q2 FY27. That quarterly flow compares with the Rs 1,762 crore outstanding rural AUM at the reporting date, while the presentation’s vintage chart provides 12-month-on-book outcomes only through the Q2 FY26 origination cohort.

Which Piramal Finance products had the highest current 90+ DPD?

Piramal Finance reported used car loans as the retail product with the highest current 90+ DPD at 1.2% in Q2 FY27. Unsecured business loans (UBL) followed at 1.1%, digital loans were at 0.9%, salaried personal loans were at 0.7%, and both housing loans and loan against property (LAP) were at 0.6%.

Used car loans had AUM of Rs 6,008 crore, or 5% of total AUM, at Q2 FY27. Their 90+ DPD had risen to 1.4% in Q2 FY26 and Q3 FY26, then eased to 1.2% in Q4 FY26 and stayed there through Q2 FY27. This contrasts with rural micro loans, where the current ratio fell from 6.9% to 0.4% over the same broad period.

UBL had AUM of Rs 6,523 crore and digital loans had Rs 6,299 crore in Q2 FY27, each representing 6% of total AUM. UBL 90+ DPD declined from 1.7% in Q4 FY25 to 1.1% in Q1 FY27 and held at 1.1% in Q2 FY27. Digital-loan DPD fell from 3.0% in Q2 FY25 and Q3 FY25 to 0.9% in Q4 FY26, where it remained through Q2 FY27.

The two largest named retail products had lower current delinquency ratios. Housing loans had AUM of Rs 34,164 crore and LAP had Rs 30,486 crore in Q2 FY27, representing 30% and 27% of total AUM, respectively. Both recorded 90+ DPD of 0.6%; housing loans rose from 0.5% in Q4 FY26, while LAP was unchanged from Q4 FY26.

Are Piramal Finance’s newer loan vintages improving across products?

Piramal Finance reported that new originations had improving or stable quality, using 90+ DPD at 12 months on book and grouping loans by quarter of origination. Retail overall vintage delinquency decreased from 2.6% for Q1 FY23 originations to 1.2% for both Q1 FY26 and Q2 FY26 originations.

Used car loan vintages show the largest reduction among the non-rural products listed. The measure declined from 6.3% for Q1 FY23 originations to 1.9% for Q1 FY26 and 1.5% for Q2 FY26. Salaried personal-loan vintage DPD declined from 4.3% for Q2 FY23 originations to 1.7% and 1.6% for the first two FY26 cohorts.

Digital-loan vintages also moved lower, from 6.2% for Q3 FY23 originations to 2.4% for Q1 FY26 and 2.5% for Q2 FY26. UBL vintages were 2.7% and 2.1% for the two FY26 cohorts, below the 5.5% reported for Q1 FY23, although not below every intervening cohort.

Mortgage vintage outcomes remained in a narrower range than unsecured products. Housing-loan vintages were 0.5% for Q1 FY26 and 0.8% for Q2 FY26, compared with 1.5% in Q1 FY23. LAP vintages were 0.6% and 0.8% for the two FY26 cohorts, after ranging between 0.4% and 0.9% through FY23.

What do Piramal Finance’s rural micro-loan vintages show?

Piramal Finance’s rural micro-loan vintages show substantial variation before the latest reported cohorts improved. The 90+ DPD rate at 12 months on book was 7.4% for Q4 FY24 originations and 9.0% for Q1 FY25 originations, the highest rural vintage reading in the presentation.

Later rural cohorts had lower reported 12-month delinquency. The rate was 3.1% for Q3 FY25 originations and 1.7% for Q4 FY25 originations, before declining to 1.0% for Q1 FY26 and 0.9% for Q2 FY26. These vintage measures are distinct from the 0.4% current-stock 90+ DPD ratio at Q2 FY27, but both series show lower reported stress after FY25.

Conclusion

Piramal Finance’s data show that the sharp rural micro-loan deterioration recorded in FY25 has receded in both current delinquencies and the later reported vintages. Rural 90+ DPD was 0.4% in Q2 FY27, below the 0.7% retail-wide ratio, while rural cohorts originated in Q1 FY26 and Q2 FY26 recorded 12-month-on-book DPD below 1%. Product outcomes were not uniform: used car loans remained highest at 1.2%, followed by UBL at 1.1%.

The next disclosed data point to watch is the 12-month performance of rural loans originated after Q2 FY26, given Q2 FY27 rural disbursements of Rs 610 crore. The presentation also shows digital-loan AUM growing 84% year on year to Rs 6,299 crore and used-car AUM growing 25% to Rs 6,008 crore, making their current 0.9% and 1.2% DPD readings relevant to subsequent retail-risk updates.