Piramal Finance lifts margin as revenue rises and expenses fall sequentially
Standalone profit rose 20.30%, although the prior quarter had a negative tax rate; management said opex has entered its guided range.
Filed 19 Oct 2026, 18:15 IST · after market close · Piramal Finance Ltd (PIRAMALFIN)
Key takeaways
- Standalone operating margin rose 2.78 percentage points sequentially to 65.11% as revenue grew 6.32% while expenses fell 1.53%.
- Standalone net profit increased 20.30% sequentially, but the comparison benefited from a tax-rate swing of 9.74 percentage points from -4.47% to 5.27%.
- Operating margin was 4.54 percentage points above the 60.57% median for 12 Financial Services peers that had reported.
Price around the results
Revenue momentum improved in the standalone business
Piramal Finance's standalone revenue rose 6.32% sequentially, while operating profit grew 11.06%, showing operating leverage in the quarter. Expenses fell 1.53%, so revenue growth translated into a 2.78-percentage-point improvement in operating margin. The company's 65.11% margin was 4.54 percentage points above the 60.57% median among 12 Financial Services peers that had reported.
Lower expenses supported margin, but interest costs increased
Expenses declined even as revenue increased, which explains the sequential margin expansion. Interest expense rose 5.32% and depreciation increased 6.03%, limiting the conversion of operating profit into pre-tax profit. Other income contributed 10.36% of pre-tax profit, so it was meaningful but not the main source of earnings.
Profit growth was helped by the tax-rate reversal
Pre-tax profit rose 32.67% sequentially, while net profit increased 20.30% as the tax rate moved from -4.47% in Q1FY27 to 5.27% in Q2FY27. This makes the net-profit comparison less clean than the operating improvement. Operating margin has now risen from 59.07% in Q4FY26 to 62.33% in Q1FY27 and 65.11% in Q2FY27, marking two consecutive quarterly increases.
Management linked the quarter to lower opex and wider gold-loan coverage
Management said the opex ratio had entered its guided range and was continuing to fall. It said the gold-loan business completed its first phase with 67 branches, after expanding from 22 branches in March 2026, and had begun phase two; the business disbursed Rs 6 cr in its first full month in June 2026. Management also said it is aiming for 200 branches by the end of FY27.
Results were filed after the market close
The results were filed after market close, so there is no reported market reaction yet. After the last three results, the stock rose once and fell twice, with a median absolute move of 1.93%; the recorded moves were -1.93%, +8.99% and 0.00%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹3,625 cr | ₹3,410 cr | +6.32% |
| Other income | ₹58 cr | ₹61 cr | -5.23% |
| Expenses | ₹1,265 cr | ₹1,285 cr | -1.53% |
| Operating profit | ₹2,360 cr | ₹2,125 cr | +11.06% |
| Operating margin (%) | 65.11% | 62.33% | — |
| Interest | ₹1,801 cr | ₹1,710 cr | +5.32% |
| Depreciation | ₹58 cr | ₹55 cr | +6.03% |
| Profit before tax | ₹559 cr | ₹421 cr | +32.67% |
| Tax | ₹29 cr | ₹-19 cr | — |
| Net profit | ₹529 cr | ₹440 cr | +20.30% |
| EPS (₹) | ₹22.97 | ₹19.41 | +18.34% |
Operating margin of 65.11% compares with a Financial Services sector median of 60.57% across 12 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The gold-loan business disbursed ₹6 crore in its first full month of operation in June 2026.
- The company completed phase one of the gold-loan rollout with 67 branches and began phase two.
Guidance & outlook
- The company says its opex ratio has entered the guided range and continues to fall.
- The company aims to reach 200 branches by the end of FY27.
Expansion
- The gold-loan business completed its phase-one rollout with 67 branches and started phase two.
- The company expanded its gold-loan branch network from 22 branches in March 2026 to 67 in June 2026.
New products
- The company began its gold-loan business, offering retail gold loans primarily for personal use.
New initiatives
- Use of Piramal.ai increased more than fivefold in the last year.
- The company launched Pia, an AI-powered investor-relations agent.
- Pia is available to respond to users around the clock about the company's financial and operational information.
- Credit.ai increased average credit-manager productivity by about 50% over the last two years.
- The gold-loan business uses AI tools for customer sourcing and 24x7 AI-based security monitoring.
What to watch
- Whether standalone operating margin holds above 65.11% after two consecutive quarterly increases.
- Whether the tax rate remains closer to 5.27% rather than the prior quarter's -4.47%.
- Progress from the 67-branch gold-loan network toward management's stated 200-branch FY27 aim.