Piramal Finance Books Rs 3,000 Crore Gain From DHFL Stressed Loans Five Years After Buyout

Piramal Finance has gained more than Rs 3,000 crore from the stressed loan book it took on with Dewan Housing Finance Corporation and retained Rs 16,000 crore in tax losses it can set off against future profits, the New Indian Express reported. The company completed the DHFL acquisition in September 2021.

Piramal's DHFL Buyout Five Years On

DHFL was the first financial services company resolved under the Insolvency and Bankruptcy Code. Chairman Anand Piramal told analysts on the company's Q2 FY27 earnings call on October 19 that gains from DHFL's stressed loans, tax benefits and low-cost long-term borrowings had made the acquisition a success. "In every possible way, this merger has proven to be a transformational one for the company," he said.

The acquisition gave Piramal Finance a retail mortgage business and a real estate lending portfolio. The company has since expanded into more than 10 product categories, covering secured and unsecured retail loans and lending to mid-sized companies. Its Growth business, which excludes the legacy loan book being wound down, grew nearly fivefold in five years, from Rs 23,000 crore at the time of the merger to Rs 1.1 lakh crore, while its branch network and employee strength tripled. Piramal Finance now serves 6.5 million customers through 838 branches, mainly in semi-urban areas.

Legacy assets under management fell Rs 780 crore, or 32%, from the previous quarter to Rs 1,673 crore at the end of September, and the book now accounts for 1.5% of total AUM, down 69% from a year earlier. Yesh Nadkarni, CEO of wholesale lending, said the reduction in the legacy book during the September quarter had no impact on profit before tax. The company holds provisions of Rs 459 crore against potential losses from the legacy book and plans to stop reporting it separately after the December quarter.

Piramal Finance's Funding and Lending Record

Piramal Finance Limited is an India-focused retail NBFC and the listed financial services arm of the Piramal Group, offering home, business, LAP, personal, used car, gold and microfinance loans, according to akta.pro company records. The same records show total funding of $839.1 million, with the most recent round on August 24, 2026, and a headcount above 10,000.

Piramal Finance's Quarter Before the DHFL Gain

On October 19, 2026, CNBC TV18 reported Piramal Finance's net profit rose 64.79% year-on-year to ₹538.59 crore for the September quarter, with revenue climbing 27.43% to ₹3,659 crore. On October 20, 2026, Business Standard reported managing director and CEO Jairam Sridharan said retail disbursements rose 38% in Q2 and that he is open to acquisitions for capability-building. On October 21, 2026, Business Standard reported Bajaj Finance and Piramal Finance flagged early signs of stress in gold loans, with Bajaj reporting a 15-basis-point rise in stage 2 and 3 assets.

Piramal Finance's Legacy Book Run-Off

CFO Vikash Singhla said the company booked a gain of Rs 90 crore from legacy recoveries in Q2, bringing overall credit cost down to 1.1% from 1.8% in Q1, while the Growth business credit cost stood at 1.5%. Sridharan said gains from legacy recoveries were being used to build buffers against potential losses elsewhere in the portfolio, and described the shrinking legacy book as a natural hedge against rising interest rates. Piramal Finance reported consolidated net profit of Rs 545 crore in Q2 FY27, up 67% from a year earlier, with first-half FY27 profit crossing Rs 1,000 crore. Total AUM rose 24% year-on-year to Rs 1,13,112 crore, while the Growth book expanded 30%.