Piramal Enterprises (PEL) Q2 25/26 earnings summary

Executive summary

• Completed merger of Piramal Enterprises Ltd with Piramal Finance, marking a pivotal transition and leadership change.

• Focused on value creation through growth, profitability, and predictability, supported by an AI-native strategy (Piramal.ai) with 45 live use cases.

• Ambition to double AUM to over INR 1.5 lakh crore by FY 2028, with a sustainable ROAUM target above 3%.

Financial highlights

• Q2 FY 2026 profit after tax reached INR 327 crore, up 101% year-over-year.

• Retail disbursements and AUM both grew 36% YoY; wholesale 2.2 AUM up 43% YoY; consolidated AUM up 22% YoY.

• Cost of borrowings fell below 9%, down 19 bps QoQ; growth business NIM up 10 bps QoQ.

• Operating profit grew 73% YoY to INR 687 crore; growth business credit cost at 1.7%.

• Tax write-back of INR 78 crore in Q2, including DTA of INR 35 crore.

Outlook and guidance

• On track to meet FY 2026 targets for AUM, AUM mix, and consolidated PAT.

• Full-year profit guidance reiterated at INR 1,300–1,500 crore, with INR 600 crore delivered in H1.

• No capital raise expected through FY 2026–27, barring a drop in capital adequacy below 18%.

• Retail OpEx to AUM target revised downward to 3.25%–3.75%.